Nicaragua backs down on San Juan canal project
The Costa Rican Foreign Ministry received a letter from the Nicaraguan government saying that "due to technical reasons," Nicaragua would not be using the San Juan River to build a transoceanic canal.
Instead, Nicaragua hopes to build a massive canal on Nicaraguan land to facilitate trade and circumvent the Panama Canal.
The San Juan River forms a natural border between the two countries, and although it technically belongs to Nicaragua, use of the river must be negotiated between the two countries.
Source: Tico Times