China to invest $1 trillion in infrastructure for developing nations

0
67

The Chinese government said that it needs strong support from international organizations and financial institutions to build infrastructure worth USD one trillion in 65 developing countries in the next decade. Announcing the One-Belt-One-Road program here in Addis Ababa on July 15, Joshua Yau, Head of China-African Initiative at PriceWaterhouse Cooper (PwC), a professional service network company, said the program is part of China’s new external assistance policy. PwC is working on mobilizing the USD one trillion budget.
The initiative will establish new roads linking Asia, Europe and Africa. It has two parts — a new “Silk Road economic belt” linking China to Europe, which cuts through mountainous regions in Central Asia; and the “maritime Silk Road” that links China’s port facilities with the African coast and then pushes up through the Suez Canal into the Mediterranean Sea.
“The infrastructure demand in developing countries is very high. We cannot get all the money from Chinese development assistance and the government’s budget.’’
“We have to look at other solutions. There are a number of finical institutions with weak ties to developing countries. Around USD five trillion is needed to meet the infrastructure demand of developing countries.”
“We have set to mobilize USD one trillion for several rail and road construction projects in developing countries. In order to achieve these goals, we have to work together with international finical institutions to acquire funds with fair interest rates.”
China has provided over USD 150 billion in financial assistance for infrastructural development in developing countries over the past 10 years.
However, budget deficits in developing countries and subsequent failure to repay debts on time have prevented Chinese contractors to work at full capacity.
Matia Kasaija, Finance Minister of Uganda, appreciated China’s plan to mobilize USD one trillion but suggested that the Chinese should utilize local resources to build infrastructure in developing countries.