A proposed canal across Nicaragua
to link the Pacific and Atlantic Oceans would extend 173 miles and cost $40 billion.
Nicaragua President Daniel Ortega and Wang Jing, the chairman of China's HKND, described the route selected for the canal and indicated that construction would begin in December, during meetings this week.
In a report, the BBC said the canal would stretch from Punta Gorda on the Caribbean through Lake Nicaragua to the mouth of the river Brito
Ortega said the government rejected less expensive routes on environmental grounds.
The BBC report quoted HKND engineers as saying the the canal would be between 230 meters-520 meters (754-1706 feet) wide and 27.6 meters deep.
On its website, HKND said the canal will include "six sub projects: canal (including locks), two ports, a Free Trade Zone, holiday resorts, an international airport and several roads. In addition, there will be construction of a power station, cement factory, steel factory and other related facilities to ensure the successful completion of the canal within five years."