Economic review

CEFC to set up zone in Georgia

2017-12-08 09:41:00 (Beijing Time)         China Daily


Chinese conglomerate CEFC China Energy Co Ltd is playing an active role in the countries and regions involved with the Belt and Road Initiative and plans to set up a cooperation zone in Georgia to diversify its overseas investments, a top executive said during the Fortune Global Forum held in Guangzhou on Thursday. [Special Coverage]

Located at the crossroads of the Middle East and Eastern Europe, Georgia is one of the key economies involved in the Belt and Road Initiative, as well as an important traffic and logistics hub in Europe, said Jiang Chunyu, board member of CEFC China.

The Chinese firm said earlier that it plans to invest in an industrial zone in Poti, Georgia, on the Black Sea, which will be engaged in manufacturing, trading and logistics as well as financial services.

It aims to build the industrial zone as a transfer hub for exporting Chinese goods and services to Europe and Central Asia, taking advantage of Poti's port facilities and its geographical location, it said.

The Belt and Road Initiative is reshaping global trade that enables significant regional economic growth, driving multilateral trade, accelerating infrastructure construction and increasing connectivity.

James Cameron, managing director and co-head of infrastructure and real estate for Asia-Pacific for HSBC, said there is a very significant need for physical infrastructure in the countries and regions relating to the Belt and Road Initiative.

"Physical infrastructure demand in the Asia-Pacific region is around $1.7 trillion a year, and that has been primarily the public sector," he said.

According to the Asian Development Bank, $26 trillion is needed to meet the infrastructure demand in the Asia-Pacific region by 2030, which equals to $1.7 trillion of infrastructure spending each year.

"There is a requirement for additional funding. This could be met through institutional funding and capabilities coming out of the State enterprises in China, which have a long history of domestic infrastructure development."

Benefiting from the Belt and Road Initiative, Georgia will also see more Chinese investment in its power, financial services, railways and port construction sectors this year, from growing demand for infrastructure projects, trade and investment channels.

Taking advantage of the investment environment created by the Belt and Road Initiative, CEFC has made sound development in the energy industry with economies involved in the initiative, said Jiang.