I have been doing a tiny bit of research (googling) recently after reading the DP article on CCECC and their land clearing exploits on Tanna. What I discovered was some interesting information. 1.The money for the project (coupled with the Malekula roading program) comes via an EXIM (Export-Import) loan. 2. Several (not not all) Chinese contractors who tender for projects use the promise of China Eximbank loans as an advantage during negotiation. 3. These contractors would approach Ministers directly rather than going through the proper tendering channels 4. Assurances are made that the exim loans would be forgiven in the future. (The Chinese Ministry of Commerce has given a lot of interest free loans to Pacific countries, as a way of offering debt-forgiveness, but Eximbank is NOT the Chinese Ministry of Commerce) 5. here in Vanuatu, the large (US$50m) China Eximbank loan for road construction in Tanna and Malekula was reported to have been negotiated directly by the late Minister for Infrastructure and Public Utilities (an MP whose electorate was in Tanna), with the civil service only consulted after an informal agreement had already been reached. [source: devpolicy.org] 6. There is no master geostrategic plan developed by the Chinese Government but rather by state owned but independent and commercially driven chinese construction companies. 7. The question remains as to why CCECC needs to clear 1.6Ha of bush and cropland in Lenhamhi Bay, Tanna as a staging area, while the MCA project for Efate uses a much smaller base at Second Lagoon and temporary depots around the island. And why CCECC has walled off land at Prima, Efate. (More on that story later) 8. As a result of high debt levels (40% in 2002), Vanuatu took no external loans between 2003 and 2007. The country could reduce its debt level through this decision to 14% in 2007 (IMF, 2009). However, recent loan agreements, especially with the China Eximbank, in addition to more concessional loans with ADB and the Japan International Cooperation Agency (JICA),10 were identified by interviewees as reasons for concern. The Ministry of Finance has no separate debt unit; the budget unit takes account of debt issues. The country has no official debt strategy but follows the IMF recommendation of keeping the level of debt below 40% of GDP and the debt service below 8%. [source: Overseas Development Initiative - The Age of Choice - Fiji and Vanuatu in the new aid landscape] This post is not to condemn the project, nor is it to ask questions on why we are getting Chinese assistance (such assistance has good reports too). The result will be great for both islands. The post is directed towards the use of the eximbank loans as a way to get around the correct process. This is only a quick sift through reports and articles dealing with this issue. It is by no means complete, nor is it designed to be the absolute authority. I raise this as perhaps an investigatve journalist can do a better job See devpolicy.org/negotiating-chinese-development-assistance-the-role-of-pacific-island-governments-and-chinese-contractors-20140808/ for background reading. It will open your eyes
Posted on: Sat, 17 Jan 2015 02:12:58 +0000
Trending Topics
Recently Viewed Topics
© 2015