The desire for Central America to build a canal arose from competing with the hugely successful Panama Canal and the recently built Yucatan Border Canal. The East Asian Federation and the Franco-German Commonwealth, each agreed paid half of the construction costs, for different reasons. In planning the summit, three locations were proposed: Guatemala City, Managua, and Hesperia City. After negotiations between the three parties, Hesperia City was chosen. The meetings began on July 1, 2010.