Tuesday, December 30, 2008

Links for China-Congo Developments?

What effect is the downturn in commodity prices having on the DRC-China contracts? Has the downturn caused China to slow its investments in mining or to renege on its commitments to build up Congolese infrastructure? Recall that China promised in September 2007 to build $9 billion worth of major infrastructure projects in the DRC to be paid for with Congo's cobalt and copper reserves. According to David Shinn, Chinese companies committed to build high-voltage power lines and power plants, expand the water system, rebuild the health system, construct four large universities, build numerous housing projects, renovate the railway system and build 250 kilometers of roads.
A balanced critique of the deals, including many more details regarding the financing and operation of the mines and infrastructure, is available here. Another analysis is available here.

But I'm not finding anything on what has happened to those deals in the past few months, since the collapse of the commodity prices. Anybody out there have any leads?

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