Seminar on Financing High-Quality Belt and Road Cooperation

Mr. Wu Fulin, Chairman of China Eximbank 

Mr. Zhang Wencai, Vice President of China Eximbank

Excellencies, Ladies and Gentlemen,

Today, I wish to share thoughts on the critical topic of establishing high-quality Belt and Road cooperation through financing. The Belt and Road Initiative, or BRI, is a significant initiative that, during its first ten years, has connected countries, stimulated economic growth, and fostered more international collaboration, supporting countries efforts to achieve the 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs). 

Before coming to China, I spent the majority of my career in Africa, where I directly witnessed how BRI has improved lives and livelihoods. The Standard Gauge Railway from Nairobi to Mombasa is an excellent example. I have travelled on this train many times. A journey which often tool 12 to 14 hours by road has been cut short to 6 hours. It has made the movement of people, goods and services efficient and economical. 

The 17 SDGs have a strong overlap with the BRI and the eight steps President Xi Jinping announced at last week’s Third Belt and Road Forum for International Cooperation. The financing needs of developing countries to achieve sustainable development are immense – US$3.5-4.5 trillion dollars annually, according to the United Nations Conference on Trade and Development. Increased financing support is critical to ensuring that our joint ambitions are met, and no one and no country is left behind. 

The BRI holds serious potential to accelerate global sustainable development and economic collaboration. 

It is a massive network of infrastructure projects, trading routes, and collaborations that spans over 150 nations. However, due to the sheer size and intricacy of this project, significant financial resources are required. 

High-quality financing looks to guarantee that these resources are used wisely, eliminating waste and enhancing advantages for all participating countries. Prudent investment and lending methods are required for high-quality finance. Openness, transparency, accountability, and long-term viability in project finance are all critical elements to ensure that BRI projects do not impose unsustainable debt on participating countries and that the resources are used effectively and efficiently. In the past, some countries encountered debt-related problems and struggled to meet the repayment terms of these loans. 

We can reduce these risks and promote long-term economic stability by focusing on high-quality finance. 

High-quality financing will also encourage environmentally and socially responsible actions, in line with both the SDGs and BRI. As the globe grapples with the repercussions of climate change and social inequities, it is critical that the BRI adhere to principles of sustainable development. The BRI can be a force for good in tackling global concerns by prioritizing ecologically responsible projects and protecting the rights and interests of local populations. The announcement that BRI will no longer fund coal-fired power plant projects is a major step forward in this endeavour. The BRI is about more than just infrastructure; it is about encouraging international cooperation and interconnectedness. 

High-quality finance also builds stakeholder trust and credibility. Countries are more inclined to engage in meaningful collaboration when their interests are respected, and projects are carried out with integrity. This confidence paves the path for stronger economic and diplomatic connections, resulting in a more stable and peaceful world. Aside from its global benefits, high-quality financing benefits the financial institutions involved by reducing risk and leading to more consistent returns. 

Finally, high-quality financing fosters long-term economic growth. It promotes investment in sectors with the potential to boost local economies, create jobs, and stimulate innovation. 

When local communities are directly involved in the BRI projects from which they will benefit, they have a stronger sense of ownership and support for the program, which is critical for its long-term sustainability. 

However, we recognize that securing high-quality funding in the context of the BRI will take concerted effort. It necessitates collaboration from a wide range of stakeholders, including governments, financial institutions, and international organizations. 

The value of collaboration and multilateralism in the context of high-quality finance goes beyond the BRI's direct economic consequences. By encouraging stable and peaceful bilateral and multilateral relations, it can influence the geopolitical landscape. 

When nations work together and participate in multilateral projects, they gain a vested stake in the prosperity and stability of the participating countries. 

The UN can serve as a connector, convener, and catalyser in order to bridge the gap between the BRI and its global development aims. As already mentioned, there are strong links between the BRI and the SDGs. At the same time, given the global financing needs highlighted above, we must also acknowledge that BRI (or any other single initiative) is not able to meet the total financing needs for the SDGs. We critically need increased financial support from a diverse set of stakeholders now, as we are far off track in meeting our shared aspirations.

Let me conclude by stressing that transparency, due diligence, and the enforcement of ethical norms are critical components of high-quality finance, and they necessitate ongoing monitoring.

As the Secretary-General of the United Nations, Mr. António Guterres, said during his opening remarks at the Belt and Road Forum, “with the contributions of the Belt and Road Initiative, we can turn the infrastructure emergency into an infrastructure opportunity, supercharge the implementation of the sustainable development goals, and deliver hope and progress for billions of people and the planet we share.” 

The Belt and Road Initiative is a massive opportunity for development and international cooperation. By focusing on high-quality financing, the BRI can help to increase trust, stability, and economic progress, resulting in a more connected and prosperous future. 

Thank you.