Recent study conducted by a group of researchers from the Rice University warned that building of a new Nicaraguan Interoceanic Grand Canal, the trans-oceanic canal, could become a major environmental disaster.

As per the study, the new canal could highly impact the fresh water supply as well as ecotourism. It also indicated that new canals might also force displacement of as many as 30,000 indigenous people.

Rice University professor and chair of environmental engineering Pedro Alvarez said that the biggest environmental challenge before the administration is to build and operate the canal without catastrophic impacts to this sensitive ecosystem.

He further said that significant impact to lake could be caused by incidental or accidental spills from 5,100 ships passing every year.

Also, the invasive species that will be brought by the transoceanic ships could threaten the extinction of aquatic plants and fish, such as the cichlids.

The team also noted that frequent dredging in the region also has a high impact on the aquatic life through alterations in turbidity and hypoxia.

Vice president of the Nicaraguan Academy of Sciences, Dr. Jorge A. Huete-Perez, said, "In terms of canal impact on Lake Nicaragua, one big concern is damage to the quality of water; the ship traffic will pollute the water with toxic sediments and industrial chemicals and introduce destructive invasive species, plants and animals".

It has been also told that the Nicaraguan Interoceanic Grand Canal, would traverse Lake Cocibolca, which is the most important fresh water reservoir in all of Central America. It is also the largest tropical freshwater lake in the United States.

A consortium of environmental scientists has also expressed their concerns on the matter. A private company is building the 275-kilometre, $50-billion canal in collaboration with the Nicaraguan government.