At present, countries in Latin America and the Caribbean region enjoy a stable investment environment, and have growing need for infrastructure construction and for upgrading technologies for making large equipment. Guests to the Seventh International Infrastructure Investment and Construction Summit all agree that Chinese businesses enjoy unique advantages in these areas, which will offer broad scope and rare opportunities for China-LAC infrastructure and production capacity cooperation.
Transformation and upgrading are under way
"We hope to see greater progress in infrastructure construction cooperation between China and LAC countries, which can move to a higher level with stronger basis, so that we can achieve our common goals,"said Zhang Xiangchen, China's deputy representative for international negotiations from the Ministry of Commerce in his remarks at the second China-LAC Infrastructure Cooperation Forum -- Working together to Usher in a New Future of China-LAC Infrastructure and Capacity Cooperation"on the sideline of the seventh International Infrastructure Investment and Construction Summit."China-LAC infrastructure cooperation is undergoing transformation and upgrading from the EPC model to franchised operation and PPP business and financing model."Zhang said that China Three Georges Corporation won the bid of franchised operation projects of hydro power stations ofZhubiaandIlya(transliteration) in Brazil, which was handed over in January this year. In Columbia, CHEC won the bid forMados(transliteration) road project, which was the first PPP project of Chinese businesses in Latin America."China is our cooperation partner and a fraternal country. We need China's investment which can help us to complement each other with our production capacities."ReneOrellanaHalkyer, Bolivian minister for development and planning, stressed that Bolivia emphasizes greatly on comprehensive development, hoping to build a passage between the Atlantic and Pacific and attracting investment through BOT and PPP models.
JoséLuisCancela, vice minister for foreign affairs of Uruguay, said that Uruguay adopted a PPP agreement in 2011, meaning that cooperation is allowed between his government, the private sector and foreign governments to carry out cooperation projects to joint develop and operate on airports, roads and social housing. He said that in the economic plan (2015-2019), Uruguay will invest 5% of its GDP on infrastructure and social projects every year. He hopes to work together with others to realize economic transformation."We have long-term confidence over cooperation between China and Latin America."Chairman Zeng Guang'an of Guangxi Liugong Group said that Liugong is committed to long-term development in Latin America to move from purely product export to the whole value chain of R&D, manufacturing, procurement, marketing and services locally."At present, Latin American countries have strong need for infrastructure construction, while China has rich experience and abundant financial resources. A good combination of the two is the key to solving the problem."Tian Yunhai, director for American and African affairs of the Department for International Cooperation of China Development Bank, suggested that development planning for infrastructure construction be done well to explore new ways for strengthening financial cooperation. The two sides can explore the development of investment players of investment evaluation and feasibility studies combining the securities nature and commercial viability.
Starting from infrastructure cooperation
Yu Yue, deputy director general of the Department for Latin American and Caribbean Affairs of the Chinese Ministry of Foreign Affairs, said that infrastructure cooperation is an important proceeding point of China-LAC production capacity cooperation. China offers important capital support for infrastructure construction cooperation with LAC countries, and is wiling to help them to build advanced, energy-saving and environmentally friendly iron and steel, cement and equipment manufacturing capacities."As businesses, we are optimistic about China-LAC infrastructure cooperation. CHEC will further diversify its businesses to move to the upstream of the value chain, and will participate further in operational assets to share cooperation results with the communities."In his remarks, General Manager Tang Qiaoliang of CHEC said that CHEC has invested US$4 billion worldwide, covering the areas of overall city development, development of real estate, and operation of large infrastructure projects such as roads, tunnels, airports and harbors.
On March 23th, this year, the Jamaica South-North expressway, CHEC's first BOT project, was open to traffic. Tang said that China-LAC cooperation in infrastructure has broad prospects in the future.
"China and LAC countries have the common need for infrastructure cooperation, and can realize mutual complement. This is an area with broad prospects and will become a new growth area for China-LAC economic and trade cooperation."General Manager Han Deping of China-LAC Production Capacity Cooperation Investment Fund said that among the 13 priority cooperation areas in China-LAC Cooperation Plan (2015～2019), infrastructure is the No.1 priority.
Xu Yingzhen, commercial councilor of the Department of American and Oceanian Affairs of the Chinese Ministry of Commerce, said that with the establishment of new financing platforms such as the China-LAC Infrastructure Loans, the two sides will explore new cooperation models, expand areas of cooperation and channels for financing, and jointly build a new structure of China-LAC infrastructure construction cooperation.
In his remarks, Zhang Xiangcheng expressed hisbelief that with the joint efforts of governments, financial institutions, businesses and the people of China and LAC countries, China-LAC infrastructure cooperation will achieve more fruitful results.
