Infrastructure Becomes Top Priority in Building OBOR while Investment Financing Heralds Win-Win Cooperation

2017-05-08, by WANG Xu, from China Energy Fund Committee

Abstract: In 2013, Chinese President Xi Jinping proposed the “Belt and Road” Initiative (BRI) that works on developing international cooperation and consensus linked with new economic policies abroad. As a result, nations along the BRI have recognized that infrastructure construction must be the initial priority of the initiative.

However, infrastructure construction is encountering many challenges worldwide. The four major challenges include huge investment gap, the lack of cooperation and coordination among regions, the reluctant participation of the private sector and insufficient law protection worldwide.

Countries along the Belt and Road are now facing with financial difficulties in infrastructure investment. This article suggests Public-Private Partnership (PPP) as a funding model to encourage private capital participating in BRI development. Enhancing Asia-Europe financial cooperation is also essential to revitalize Asian and European trans-regional economic growth.

Copyright © China Energy Fund Committee (CEFC). All rights reserved.