One Belt One Road Initiatives in the Neighbourhood & Beyond Monthly Roundup

SECTION 1 – NEIGHBOURHOOD

Pakistan

1. Saudi Arabia has decided to shift a proposed USD 10 billion oil refinery from Gwadar to Karachi, further supporting the impression that the port city is losing its importance as a mega-investment hub.ⁱ

2. During a meeting with Pakistan’s Federal Minister for Finance & Revenue Shaukat Tarin, Chinese Ambassador Nong Rong expressed the desire of the Chinese Government to invest more in all sectors to lift the economic standing of Pakistan.ⁱⁱ

Afghanistan

3. According to a spokesman for Afghanistan’s power department, several Chinese companies during their meeting with President Ghani showed their preparedness for investing USD 400 million in the energy sector.ⁱⁱⁱ

Bangladesh

4. A Chinese-backed coal-fired power plant in Bangladesh called the S. Alam Group’s coal plant has been accused of failing to ensure proper environmental inspections.^iv

5. More than 100 activists from 21 countries sent a letter to China’s government calling for it to end financing of a coal-fired power plant in Bangladesh, saying Beijing had notified Dhaka in February that it would no longer support highly polluting projects.^v

6. China has withdrawn funding for two OBOR infrastructure projects after Bangladesh re-evaluated the programs and reduced their costs. The two affected projects are the Joydebpur-Ishwardi dual-gauge double-line rail and the Akhaura-Sylhet dual gauge rail, while the Joydebpur-Jamalpur dual-gauge rail faces an uncertain future.^vi

Nepal

7. The Investment Board of Nepal approved a proposed investment of USD 280 million to develop the Lower Manang Marsyangdi Hydroelectric Project with a capacity of 139.2 MW, which will be executed by a Chinese-Nepali joint venture.^vii

8. China Railway Construction Corporation (CRCC), responsible for road construction in Nepal's Sindhupalchawk, has been witnessing people's fury who blamed the company for environmental transgression leading to landslides and damage to houses in the district^viii.

9. Former Nepalese Ambassador to China Leela Mani Paudyal said that Nepal rejects Indo-Pacific Strategy and highlighted the importance of OBOR in Nepal's foreign policy.^ix

Sri Lanka

10. The Sri Lankan President opened the largest specialised nephrology hospital in South Asia, which was built through a grant from China. The hospital was requested by former President Sirisena during a visit to China in 2015 and took 30 months to construct^x.

SECTION II – BEYOND THE NEIGHBOURHOOD

Southeast Asia

1. Indonesia. During a meeting with the Indonesian president’s special envoy Luhut Binsar Panjaitan, Foreign Minister Wang Yi said China would deepen its Covid-19 cooperation; build a regional vaccine production centre in Indonesia; encourage more Chinese vaccine manufacturers to conduct clinical trials in the country; strengthen their cooperation on OBOR, in particular getting the Jakarta-Bandung high speed rail completed on schedule; signed a MoU on maritime cooperation; and discussed the need to accelerate consultations on the code of conduct in the South China Sea.^xi

Europe

2. Sweden. A Swedish court has upheld a ban on Huawei Technologies selling 5G equipment in Sweden. A Huawei representative said the company was disappointed with the verdict, but added that it was “not the final ruling on our case”.^xii

3. Romania. Romania’s President Klaus Iohannis signed a bill on 11 June that effectively bars China and Huawei from taking part in the development of its 5G telecom networks, on security concerns^xiii.

4. Bulgaria. The sixth international conference "The Silk Road" commenced in Sofia, bringing together sinologists and specialists from various aspects of China studies. The event, held every two years since 2011 by the Confucius Institute at Sofia University, has gathered representatives from various countries.^xiv

Oceania

5. Pacific Islands. The World Bank reportedly declined to award a contract for the East Micronesia Cable system project after Pacific island governments heeded US warnings that participation of China’s HMN Technologies posed a security threat.^xv

6. Samoa. Samoa’s disputed leader Tuilaepa Sailele Malielegaoi is reportedly promising to build Vaiusu port with Chinese help for USD 100 million, about a third of the cost proposed earlier, as he bids to stay in power despite losing a parliamentary majority in a tight election.^xvi The ADB said that it found in a 2015 study that the Vaiusu plan was "not economically and financially viable".

Africa

7. Kenya. The expansion of 84-km Kenol-Sagana-Marua highway that passes through central Kenya will be completed in 2022, ahead of schedule. The project, which is being undertaken by Jiangxi Transportation Engineering Group and China Wu Yi Co., Ltd., aims to link Nairobi to agriculturally rich central parts of the country to Moyale town which neighbors Ethiopia.^xvii

8. Ethiopia.

(a) Ethiopian Prime Minister Abiy Ahmed inaugurated a Chinese built sugar factory constructed in northern Amhara regional state.^xviii

(b) China Civil Engineering Construction Corporation launched the construction of a USD 110 million Modjo dry port expansion project in central Ethiopia. The expansion project encompasses construction of six warehouses, several road and pavement works, multipurpose buildings and various operating facilities.^xix

9. Senegal. Senegal announced that it would move its government data and digital platforms to a USD 150 million data centre financed by China’s EXIM bank and built with technical support from Huawei. The data centre will tap into global networks through an undersea cable as well as Senegal’s 6,000-km fibre optic network.^xx

10. Tanzania. Tanzanian President Samia Suluhu Hassan said the country will look to revive the USD 10 billion Bagamoyo Port project.^xxi

Other Issues.

11. Professor Fang Chuanglin, a senior adviser to the Chinese government, led a study that argued the bulk of OBOR investment should go to countries in southern and southeast Asia because they have fewer environmental issues to threaten economic development. The study highlighted 18 countries, including Thailand, Vietnam and Sri Lanka as “key development zones” and “the pace of their economic agglomeration should be accelerated.^xxii

12. According to a new report by C4ADS China is increasingly turning to unregulated security companies to protect its growing economic interests along the Mekong river. The analysis found that 24 of the 49 foreign private security companies in Cambodia and Myanmar were owned by Chinese nationals as Beijing encourages the use of these firms to protect the increasing number of Chinese businesses and tourists.^xxiii