With China drumming up support for its “Belt and Road” initiatives, the project has whetted the interest of many countries along its projected routes. However, the question remains of how to raise the huge funds for the infrastructure projects it envisions, with an annual requirement of at least US$800 billion.
During the sixth International Infrastructure Investment and Construction Forum (IIICF) held in Macau June 4-5, many attendees put forth various proposals for solving the funding problem, including some innovative ones, such as the participation of private capital via public-private partnerships, a model currently being touted prominently in China.
Many countries along the Belt and Road have been the destination of Chinese investors who have been very active worldwide in recent years. At a press conference in early June, Shen Danyang, spokesperson for the Ministry of Commerce, pointed out that direct investments by Chinese enterprises in such countries topped US$3.72 billion in the first four months this year, accounting for 10.6% of the nation’s total outbound investments. The figure amounted to US$1.16 billion in April alone, up 12.5% year-on-year, with major investment destinations including Singapore, Indonesia, Laos and Vietnam.
In addition, during the first four months of the year, Chinese enterprises completed engineering projects worth US$18.57 billion, up 10.9% year-on-year, in countries along the route of the Belt and Road project, according to Shanghai’s National Business Daily.
Wang Bin, vice president of the Power Construction of China, said that with policy support Chinese enterprises can combine their edges with resources and funds in materializing the projects the government envisions.
The newly founded Asia Infrastructure Investment Bank (AIIB) will play a critical role, providing some US$400 billion per year for projects under the auspices of the Belt and Road, according to some research bodies.
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