Analysis: Arturo Wallace, BBC News, Nicaragua
There is a clear sense of expectation here, where the construction of a man made passage between the Pacific and Atlantic oceans designed to dwarf the Panama Canal has officially begun.
But there is also tension: over the past few weeks protests against the canal have increased.
And the authorities' decision to hold the main groundbreaking ceremony in Managua, some 120km away from where the waterway is to built, won't help convince the many sceptics who still doubt the project's viability.
The government claims that the project, awarded to a Hong Kong based international consortium, will finally lift the Western hemisphere's second poorest country out of poverty.
But many fear environmental damage may outweigh the economic benefit, or oppose the extremely generous terms offered to the Chinese investors.
Those who live on the projected route simply don't want to lose their land and livelihoods.
HKND says it expects the project to be finished within five years and operational by 2020, and to cost about $50bn (£32bn).
The project is to include two ports, an airport, a resort and an economic zone for electricity and other companies.
But some have questioned the canal's financial soundness and allege that Wang Jing lacks experience in developing or financing big infrastructure projects.
Opponents are also concerned about the impact construction may have on Lake Nicaragua and on poor communities in the area.
The route announced in July would pass through the lake, an important source of fresh water.
Environmentalists have warned of the risks of damming rivers and moving large amounts of soil. Communities along the route have staged protests.
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