Infrastructure | CHINDIA ALERT: You'll be living in their world, very soon

06/09/2012

* China Approves 25 Subway Projects

WSJ: “China has recently approved 25 subway projects by local governments, data from the country’s top economic planning agency show, as part of the central government’s efforts to boost sluggish growth in the world’s second-largest economy.

The National Development and Reform Commission has approved a total of 710.8 billion yuan ($112.1 billion) worth of investments by 18 local governments to build city subways, according to statements posted on its website Wednesday.

Most of the approvals came between June and August, according to the NDRC. The projects are expected to have an average construction time of 4.6 years, with local governments providing 40% of the funding.

Beijing has significantly accelerated approvals for new infrastructure projects by local governments as it seeks a range of avenues to jump-start growth, which slowed to a more-than-three-year-low of 7.6% in the second quarter. Recently-released key economic data from the manufacturing, trade and industrial sectors added to the gloom.

Nomura economist Zhang Zhiwei said the recent number of city subways approved was comparable with the 23 approved in early 2009, when the government unleashed a 4 trillion yuan stimulus package.

“This news suggests that the pace of fiscal policy easing has picked up,” Mr. Zhang said.”

via China Approves 25 Subway Projects – WSJ.com.

China is at it again, using infrastructure spend to boost the economy. At least this time its aimed a specific need, easing urban traffic and speeding urban travellers.

Posted in China alert, Economics, Infrastructure, Politics | Leave a Comment »

Tags: Beijing, China, Local government, National Development and Reform Commission, Subway, transportation, Urban Transport, Zhang Zhiwei

03/09/2012

* China’s steel traders expose banks’ bad debts

Reuters: “China’s banks are coming after the country’s steel traders, hauling executives into court to chase down loans that some traders said they didn’t initially need and can’t now repay.

The heavy push to recover the loans is another sign of strain on China’s financial system at a time when the country’s leaders are contemplating another round of stimulus to boost the economy, and when banks are worried about bad debts piling up.

The battle between the banks and steel traders also exposes flaws in the 4 trillion ($629 billion) stimulus round in 2008, and offers a warning to those calling for pumping more money into the system. At that time, Chinese banks threw money at the steel trade – a crucial cog in supplying the country’s massive construction and infrastructure growth.

But those steel loans, after offering a quick fix, became excessive, poorly managed, or a combination of the two. Government officials insisted more money was needed to prop up the industry. Steel executives said the money flow was too heavy, and they had to put the money to work in real estate and the stock market.

“After the financial crisis, when the government released its stimulus, banks begged us to borrow money we didn’t need,” Li Huanhan, the owner of Shanghai Shunze Steel Trading, told a judge at a recent hearing. “We had nothing to do with the money, so we turned to other investments, like real estate.””

via Insight: China’s steel traders expose banks’ bad debts | Reuters.

Chinese banks resume loans, cut rates to some steel traders (uk.reuters.com)

Posted in Banking, China alert, Economics, Infrastructure | Leave a Comment »

Tags: Business, China, Chinese financial system, economy, Money Flow Index, real-estate, Steel

25/08/2012

* Authorities deny remarks relating to fatal bridge collapse

Xinhua: “Authorities in Harbin have denied that officals had previously said no contractors could be found to take possible responsiblity for a fatal bridge collapse.

A ramp on the multi-million-dollar bridge in Harbin, the provincial capital of Heilongjiang in northeast China, collapsed early Friday morning, causing four trucks to plunge 30 meters to the ground, killing three people and injuring five.

Following the collapse, there were claims on the internet that officials from the Harbin municipal commission of housing and urban-rural development said the bridge construction headquarters had dissolved and no contractors could be found.

On Saturday, Huang Yusheng, secretary general of the Harbin municipal government, denied there had been any such remarks.

Huang said the government had provided relevant materials from the designer, contractor and supervisor to the investigation team. After the investigation ends, names of the designer, contractor and supervisor will be made public, he told a press briefing.

On Friday, Huang suggested that overloading of some vehicles could be one of the possible causes for the accident. The remarks drew a fierce backlash from the public as many saw it as an attempt to shirk responsibility.

The collapse of the bridge, which cost 1.88 billion yuan (296 million U.S. dollars) and opened to traffic in November 2011, has also caused public outcry over the safety of public facilities and inadequate management and supervision by government agencies.”

via Authorities deny remarks relating to fatal bridge collapse – Xinhua | English.news.cn.

Posted in China alert, Construction, Economics, Infrastructure | Leave a Comment »

Tags: Bridge, China, Harbin, Heilongjiang, List of bridge failures, Northeast China

10/08/2012

* China starts construction on 5.8 mln low-income housing units

Xinhua: “China started building 5.8 million low-income housing units in the first seven months of this year, the Ministry of Housing and Urban-Rural Development said Friday.

Construction on 3.6 million affordable homes has been basically completed in the period, the ministry said in a brief statement on its website.

The government vowed to start construction on more than 7 million low-income housing units this year, part of its five-year plan to build 36 million such units by 2015.

The government has stepped up its efforts in the construction of affordable housing in recent years, aiming to cool the country’s runaway property prices.”

via China starts construction on 5.8 mln low-income housing units – Xinhua | English.news.cn.

Low-income housing projects opened to private investment (wantchinatimes.com)

Posted in China alert, Economics, Good news, Housing, Investment in tangibles, Low income | Leave a Comment »

Tags: affordable housing, China, Construction, low income housing, Ministry of Housing, Ministry of Housing and Urban-Rural Development of the People's Republic of China, real-estate, Urban-Rural Development

30/07/2012

* India’s Power Demand Fuels Bhutan’s Economy

WSJ: “When northern India was hit by its worst power outage in a decade early Monday – bringing trains to a standstill, creating massive road jams in the absence of traffic signals, and keeping thousands of offices and factories shut – the country’s leaders turned to its tiny neighbor Bhutan for help.

The Himalayan kingdom responded by releasing additional power from its hydroelectric plants, allowing New Delhi to restore some order while government officials and engineers worked to fix its electricity network.

This example of David coming to Goliath’s rescue speaks of Bhutan’s successful efforts to increase its electricity generation capacity to help boost its modest economy.

Bhutan – which is just 1% of India’s size and has fewer than 800,000 people compared with its neighbor’s 1.2 billion – now provides 1% of India’s electricity needs.

India has a deal to buy 5.480 billion kilowatt hours of power from Bhutan in the year that began April 1. The number might seem small, but it is hugely significant for Bhutan.

The electricity sector’s share of Bhutan’s economy has reached almost 20%, and it now outstrips agriculture as the single-largest contributor to gross domestic product, according to a World Bank report published in September.

Bhutan’s gross domestic product grew 8.1% in the year that ended March 31, 2011, helped by the construction of new hydropower projects, the report added. It anticipated that electricity exports will be the country’s main source of growth in the short-to-medium term.

Bhutan has hydro power potential of 30,000 megawatts, about a fifth of India’s own potential. However, the hydro projects in India aren’t making much progress due to strong protests from environmentalists and other issues.

So New Delhi is focusing on tapping the potential of land-locked Bhutan. India has helped build 96% of the kingdom’s overall hydropower capacity (1,472 megawatts.)

In July 2006, India agreed to develop and import 5,000 megawatt of electricity from Bhutan by 2020. The target was doubled to 10,000 MW in May 2008.

India also has a significant military presence in Bhutan, which it views of strategic importance as it shares a disputed border with China.”

via India’s Power Demand Fuels Bhutan’s Economy – India Real Time – WSJ.

India-Bhutan-China Strategic Triangle – Analysis (eurasiareview.com)
Bhutan may get 50% ownership of Joint-Venture hydroprojects (thebhutanese.bt)
Tata Power seeks nod to produce in Bhutan and sell to India (thehindu.com)
Bhutan’s move reflects maturing Sino-Indian ties (thehindu.com)

Posted in Economics, GeoPolitics, India alert, Infrastructure | Leave a Comment »

Tags: Asia, Bhutan, electricity generation capacity, Gross domestic product, Hydroelectricity, India, New Delhi, World Bank

14/07/2012

* Wuhan airport to build new terminal

China Daily: “A new terminal will be built in the Wuhan Tianhe International Airport before 2015 to meet increasing passenger demand in Central China’s Hubei province, local media reported on Friday.

The project will cost about 16 billion yuan ($2.5 billion), and will occupy an area of 370,000 square meters with a 3,600-meter long and 60-meter wide runway, the Chutian Metropolis Daily reported.

The new runway can guarantee the safe takeoff and landing of the Airbus A380, the report said.

The project, already approved by the National Development and Reform Commission, will start construction before October. The terminal will be built in a flying-phoenix shape, representing local culture.

A parking apron with capacity for 60 planes will also be built, the report said.

According to airport data, more than 12 million domestic and foreign passengers arrived at, or left from, the airport last year, only 1 million less than the airport’s capacity of 13 million.

The airport is expected to receive about 14 million passengers this year.”

via Wuhan airport to build new terminal |Society |chinadaily.com.cn.

The current Wuhan airport was only opened in 1995, and a new one is planned for2015 – looking to the future.

London Heathrow was built in 1929 and expanded to its modern configuration after WW2. It is limited by its two main runways. Yet, after years of debate, neither has a decision been made to build a third runway nor has an alternative solution been discussed seriously – there being so many contenders ranging from expanding Gatwick or another nearby airport or even expanding provincial airports like Manchester or Birnmingham; plus a proposed contentious new airport in the Thames Estuary favoured by London Mayor Boris Johnson. Case of looking to the past?

Enough dithering – an estuary airport is the only option (standard.co.uk)
Thames Estuary Airport NOT the right move (kentonline.co.uk)
China looks to lift economy with airport projects (wantchinatimes.com)
Heathrow set for big increase in capacity (independent.co.uk)
Boris Johnson has given his support to plans to build a second runway at Stansted Airport, the Standard can reveal. (standard.co.uk)
Aviation blueprint against Thames Estuary airport (kentonline.co.uk)

Posted in Affluence, China alert, Economics, Infrastructure, Transport | 2 Comments »

Tags: Airbus A380, Airport terminal, aviation, boris johnson, Hubei, hubei province, London Heathrow Airport, National Development and Reform Commission, Runway, thames estuary, transportation, travel, Wuhan Tianhe International Airport

31/05/2012

* Iran cancels $2 billion dam deal with China

Iran has cancelled a $2 billion contract for a Chinese firm to help build a hydroelectric dam in the country, Chinese state media said on Thursday, a move that risks upsetting Beijing, one of Tehran’s most important economic and political allies.

Iranian President Mahmoud Ahmadinejad is due to visit China next week for a security summit, where he is expected to hold talks with his Chinese counterpart, Hu Jintao, on Iran’s disputed nuclear programme.

In March 2011, Iran’s official IRNA news agency said China’s Sinohydro Corp. had signed a contract with Iranian hydro firm Farab to build the dam, described as the world’s tallest, in Iran’s western province of Lorestan. It was designed to support a 1,500-megawatt power station.

The Global Times, a popular tabloid owned by Chinese Communist Party mouthpiece the People’s Daily, said the Iranian government had decided to cancel the contract. The report did not cite sources or give a reason for the cancellation.

But it quoted Iranian media reports as saying Iran’s central bank was “dissatisfied” with financing options offered by China.

From China Daily Mail blog

Iran cancels $2 billion dam deal with China « China Daily Mail.

Posted in China alert, Economics, Infrastructure, Politics | Leave a Comment »

Tags: China, iran, middle-east, politics

31/05/2012

* Senior leader says to promote Xinjiang’s leapfrog development

Xinhua: “Vice Premier Li Keqiang on Wednesday called for more support to Xinjiang Uygur Autonomous Region to achieve leapfrog development and long-term stability in this westernmost region of China. Li made the remarks at the 3rd National Work Conference on “pairing assistance” projects to support Xinjiang’s development.

Maps of Xinjiang Uygur Autonomous Region of China Español: Región autónoma de Xinjiang (Photo credit: Wikipedia)

President Hu Jintao met the delegates to the annual conference and thanked them for their efforts made in accelerating Xinjiang’s development. Premier Wen Jiabao and Vice President Xi Jinping, both members of the Standing Committee of the Political Bureau of the Communist Party of China CPC Central Committee, were present at the meeting. Zhou Yongkang, also member of the Standing Committee of the Political Bureau of the CPC Central Committee, also met with the delegates and attended the conference.

Huge achievements have been made in the past two years under a large number of pairing assistance projects for Xinjiang, especially projects concerning Xinjiang people’s well-being, said Li, also a member of the Standing Committee of the Political Bureau of the CPC Central Committee.

Vast land, abundant resources and huge development potential make Xinjiang a major area to implement China’s strategy to expand domestic demand and the strategy to develop the country’s western regions, Li said, adding Xinjiang is also a key area to accommodate transfer of domestic industries. Xinjiang is one of the bridgeheads for China’s opening to central Asia and Europe, said Li, calling for speeding up the opening of China’s western border areas while enhancing the openness of its eastern coastal regions.

Li noted that assisting the development of Xinjiang is a long-lasting, arduous and imperative task. More efforts and higher effectiveness are needed to advance the programs concerning the well-being of local people, such as housing, employment, medical care and social insurance, while the infrastructure construction and environmental protection should be further improved, said Li. More support regarding technology, education, talented people and excellent cadres should be provided to Xinjiang, and the exchanges between Xinjiang and inland areas should be enhanced, Li added.”

via Senior leader says to promote Xinjiangs leapfrog development – Xinhua | English.news.cn.

Xinjiang and Tibet are the two areas where ethnic minorities do not see eye to eye with the Han majority. Interestingly, both are strong adherents of religion; Buddhism in the case of Tibet and Islam in the case of Xinjiang. Until and unless the central authorities can convince these minorities that they have some form of self-determination (after all both are called ‘autonomous regions’ of China), unrest will continue.

China’s ability to continue to sway Xinjiang
* Senior leader underlines infrastructure building in Xinjiang (chindia-alert.org)
China’s Restive Xinjiang Region Hit by Renewed Violence (globalspin.blogs.time.com)
Xinjiang Governor claims Pak ‘links’ to unrest (thehindu.com)
Report: Xinjiang riots claim 12 lives (upi.com)
At least 20 people were killed in China’s Xinjiang (chindia-alert.org)

Posted in China alert, Economics, education, Environment, Ethnic clash, Good news, Infrastructure, Technology | 3 Comments »

Tags: China, Hu Jintao, Wen Jiabao, Xi JinPing, Xinjiang, Zhou Yongkang

31/05/2012

* Myanmar can be link between India, China: Indian PM

Times of India: “Looking to quell speculation about India and China taking their rivalry to gas-rich Myanmar, PM Manmohan Singh said the country was perfectly placed to play the role of an economic bridge between China and India. While Indian officials have often described Myanmar as India’s gateway to Aseancountries, this is the first time Myanmar has been spoken about by the government as a link between India and China.

English: Manmohan Singh, current prime minister of India. (Photo credit: Wikipedia)

While China alone accounts for more than 70% of investments into Myanmar, India stands at the 13th position in terms of its investments into the country. Despite its attempts to play a larger economic role there, India continues to be looked upon as a Johnny-come-lately whose infrastructure projects, including the ambitious Kaladan multimodal transport facility, have hardly taken off. On the other hand, Beijing is even building a gas pipeline from Myanmar to China.”

via Myanmar can be link between India, China: PM – The Times of India.

Posted in China alert, Chindia Alert, Economics, GeoPolitics, India alert, Infrastructure, Trade | Leave a Comment »

Tags: ASEAN, Burma, China, economic bridge, India, manmohan singh, Myanmar, prime minister of india

30/05/2012

* China Buys Spanish Assets

WSJ: “A debt-laden Spanish construction firm became the latest European company to unload assets onto eager Chinese buyers, as Europes debt woes force firms to look to China for cash.

State Grid Corp., China’s government controlled power-grid operator, said Tuesday it would buy high-voltage electricity transmission assets in Brazil from Spain’s Actividades de Construccion y Servicios SA for 1.86 billion reais ($938.2 million), including debt. The deal is State Grid’s second investment in Brazil and its fourth major investment overseas, and is the most recent in a string of deals in which a European company has looked to exit an investment amid financial troubles facing the region. ACSs standing has weaken because of its debts and the falling value of investments made during Spain’s boom years. Chairman Florentino Pérez, who is also the president of Spain’s soccer club Real Madrid CF, led ACS’s expansion when liquidity was abundant and Spain’s economy was booming on the back of a real-estate bubble that imploded about five years ago. As credit dried up, ACS began to cut down on debt by shedding assets. ACS currently has more than €9.33 billion ($11.70 billion) in debt, about a half of what it had a few years ago.

Other southern European companies have also been selling their crown jewels abroad to raise cash. Portugal, for example, is attracting significant investments from China because of its presence in former colonies that are resurfacing as high-growth markets, rich in natural resources. In December, fellow state-controlled power giant China Three Gorges Corp. won a 21% stake in EDP-Energias de Portugal SA— which has significant Brazil operations—with a €2.69 billion bid.

via China State Grid to Buy Brazilian Assets – WSJ.com.

Posted in China alert, Economics, Infrastructure, Investment in tangibles, Natural resources, Recession | Leave a Comment »

Tags: Brazil, Business, China, China State Grid, club real madrid, economy, Electric power transmission, Investment, real madrid cf, State Grid Corporation of China

CHINDIA ALERT: You'll be living in their world, very soon

Chindia Alert: You’ll be Living in their World Very Soon

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* China Approves 25 Subway Projects

* China’s steel traders expose banks’ bad debts

* China starts construction on 5.8 mln low-income housing units

* India’s Power Demand Fuels Bhutan’s Economy

* Wuhan airport to build new terminal

* Iran cancels $2 billion dam deal with China

* Myanmar can be link between India, China: Indian PM

* China Buys Spanish Assets

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