The China Development Bank (CDB) and the Export-Import Bank of China (Ex-Im Bank) are in talks with other international lenders over cooperation on overseas projects after a number of Beijing-led deals have experienced problems.
In a statement to the Financial Times, the CDB said that the bank was “actively co-operating” with the European Bank for Reconstruction and Development (EBRD) to establish a co-lending arrangement, whereby the CDB will follow “international standards” – such as greater, more open competition for project contracts and more comprehensive environmental impact assessments.
Should the two sides sign a memorandum of understanding to cooperate, this would be the first example of China’s development banks, which together are the largest of their kind worldwide, removing the requirement that funded projects be carried out principally by Chinese companies.
According to the FT, some 14% of the 1,674 China-led investment projects associated with the Belt and Road initiative since 2013 have faced problems including public protests, poor governance, performance delays, and concerns surrounding national security.
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