New fund initiated for Silk Roads

By Hu Weijia Source:Global Times Published: 2015-1-25 23:13:02

Aims to raise $20b from private sector

The Energy Development Fund, with an estimated amount of more than $20 billion, was launched in Beijing on Sunday to finance China's "One Belt, One Road" initiatives, at a time when the government has called for introducing more private capital to infrastructure construction in Asia.

China Energy Fund Committee (CEFC), a Hong Kong-based high-end strategic think tank engaged in global energy cooperation, held a preparatory meeting in Beijing on Sunday to call for the establishment of the new fund which would focus on investing in energy infrastructure construction in countries along the routes of "One Belt, One Road."

The "One Belt, One Road" Energy Development Fund was initiated by private Chinese enterprises and will invite government funds and foreign investors to participate, planning to raise a total of $20 billion from the private sector, Patrick C.P. Ho, deputy chairman and secretary-general of CEFC, told reporters on Sunday.

He Yafei, deputy head of the Overseas Chinese Affairs Office of the State Council, said Friday at a conference in South China's Hainan Province that the "One Belt, One Road" initiatives have received interest from more than 50 countries, the Xinhua News Agency reported Saturday.

A lot of foreign investors have paid attention to the Energy Development Fund and the fund will operate under international standards, Ho said without offering details about the fundraising and investment mode.

The "One Belt, One Road" initiatives, which refer to the Silk Road Economic Belt and the 21st Century Maritime Silk Road, were launched by President Xi Jinping in 2013, under which China aims to support partner countries along the routes in infrastructure construction.

To finance the initiatives, China announced in November 2014 it would set aside $40 billion to establish a Silk Road Fund, hoping to bring in more private capital from China and abroad.

The Energy Development Fund would act as a complement to the Silk Road Fund and offer a channel for private firms to invest in energy infrastructure construction, Ho said.

Separately, Xu Yuming, deputy secretary-general of China Nuclear Energy Association, told the Global Times on the sidelines of the meeting that China is expected to restart approvals of nuclear power stations soon after a nearly four-year suspension of project approval and there are opportunities for overseas investors.

Posted in: Economy

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