Minister in the Ministry of Public Works, Deodat Indar on Wednesday commended China’s Belt and Road Initiative (BRI) as a means of transforming nations but issued cautions on debt sustainability and environmental considerations.
The Minister was at the time addressing the High-Level Forum of Connectivity of the Third Belt and Road Forum of Infrastructure Cooperation in Beijing, China.
Inaugurated in 2013, the BRI is seen as an initiative by China to expand its global reach.
“Promoting infrastructure connectivity among [BRI] partner countries is not just about building roads and bridges; it’s about building bridges of understanding, cooperation, and shared prosperity,” Indar stated, according to a release from the ministry.
He underscored that the BRI has far reaching benefits that foster economic activity, reduce transportation costs, alleviate poverty and foster cultural exchange.
He however said that while the initiative is being pursued, it must be approached sustainably.
“Environmental considerations, social impacts and debt sustainability must be carefully managed to ensure benefits of connectivity do not come at the expense of the planet,” the minister added.
It has been argued that several countries have become significantly indebted to China in the context of the BRI and face difficult choices.
On the sidelines of the event, Indar told the press that the expansion in Guyana’s infrastructure portfolio following oil and gas production makes the BRI even more important as it provides access to technology and financing.
The Presidents of China, Russia, Argentina and Prime Minister of Egypt, among others, delivered remarks at the opening session and breakout sessions of the event. Attendees also heard presentations from the UN Secretary General.
The summit began on Tuesday and concluded on Wednesday.
A Reuters report had indicated that more than 130 countries attended the summit. The conference in Beijing marked the 10th anniversary of the initiative championed by Chinese President Xi Jinping.
President Irfaan Ali had applauded China’s proposals for the Belt and Road Initiative during an 8-day visit to Beijing a few months ago.
The Chinese Government in a statement said then “With reference to the Memorandum of Understanding on Cooperation within the Framework of the Silk Road Economic Belt and the Twenty First Century Maritime Silk Road Initiative, signed between the two sides on July 27, 2018, the Guyana side expressed willingness to discuss and conclude the Joint Action Plan on Promotion of the Belt and Road Initiative with the Chinese side.”
China & Guyana agreed to investigate the prospects for collaboration in the development and construction of critical infrastructure projects, leveraging China’s experience, and expertise and finance capacity.
According to a Reuters report dated October 16 “More than US$90 billion worth of Chinese commercial investment in BRI projects has faced `insurmountable problems’, according to data from the American Enterprise Institute think tank. The issues range from outright cancellation to indefinite delays, `mainly from political requirements and errors by Chinese firms’”.
“From the Chinese perspective, the biggest problem is that they’ve realized now that they’re carrying an awful lot of debt in developing countries which are going to struggle to really pay it back,” said Raffaello Pantucci from the Rajaratnam School of International Studies in Singapore” the report was quoted saying.
“This is one reason the initiative has shrunk and is focused more on quality than quantity, say analysts. But the BRI is also more focused on issues like peace, climate change, energy crises and artificial intelligence, among many other areas, according to a Chinese government white paper released last week” the report further stated.
On July 27, 2018, Guyana signed a Memorandum of Understanding (MOU) supporting China’s Belt and Road Initiative (BRI). The MOU was signed by the then Chinese Ambassador Cui Jianchun and former Foreign Affairs Minister Carl Greenidge on behalf of the Government.
