Around South Asia & South East Asia [01.11.15]

Sri Lanka

Large Scale Engineering in Sri Lanka

#LargeScaleEngineering

Sri Lanka’s new prime minister has said he will cancel a $1.5 billion “port city” being built by China on the waterfront in Colombo, the capital.

Sri Lanka’s new prime minister has said he will cancel a $1.5 billion “port city” being built by China on the waterfront in Colombo, the capital.

“… was ready to  allow Sri Lankan territory to be used for Chinese military activity.

Chinese-funded infrastructure projects

China began construction of a $1.5 billion “port city” including malls, hotels and marinas, part of a constellation of Chinese investments that represent an estimated $4 billion in loans.

Last month, Ranil Wickremesinghe, who was sworn in as prime minister on Friday, said he would cancel the planned $1.5 billion port city, and Harsha de Silva, economic affairs spokesman for the opposition United National Party, said the new government planned to review all major infrastructure projects for “irregularities.”

As the West drew back, China, stepped in, both rich and easygoing on human rights.

Sri Lanka is a linchpin in one of Mr. Xi’s key foreign policy projects, a maritime trade route intended to connect China and Europe, known as the “Silk Road.” The plan, backed by a $40 billion fund, is viewed nervously by India as an encircling strategy that could undermine its own dominance in the region and conceivably culminate in the construction of Chinese military facilities.

“They all (African Nations), in one way or another, turn to China, because it was the only player ready to help them finance infrastructure and public spending,”

“the difference between credit (China) and real aid (West).”

This time, Washington should be prepared, perhaps with its own investment program.

“There has been an underestimation of the power of Chinese money, the simple and pure power, and how much of it they are willing to throw around the region,”

#TahsinVersion2 : Observations regarding Chinese Investments and “Large Scale Engineering” [ #LargeScaleEngineering ] Projects 

  • Chinese investments are qualitatively different : it’s the Chinese State and SOE (State Owned Enterprise)s that invest, (China being a country where “State Capitalism” is practiced) – which contributes to their dreams of imperial expansions.
  • China is more approachable to many countries as China doesn’t demand Western ideals of Free Speech and respect of Human Rights for investments.

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