Two Projects in Asia and Africa Highlight the New Realities of Chinese Development Finance

The Chinese financed Hwange Power Station in Zimbabwe (LEFT) and initial construction of the $1.7 billion Funan Techo canal in Cambodia that is supposed to be partially financed by China. AFP

Two very interesting stories this week highlight the complexity of China’s development finance initiatives in Asia and Africa. In Cambodia, people close to the massive $1.7 billion Funan Techo canal project hint that Chinese financing isn’t as secure as Prime Minister Hun Manet made it sound when construction began last August.

Then, in Zimbabwe, a different yet equally worrying concern is on the rise over whether Chinese creditors will pull the plug on the vital Hwange power station due to the African country’s inability to make the $36 million monthly payment for refurbishments of the plant done by Sinohydro.

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by Eric Olander

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