Silk Road Fund facilitates financial integration along Belt and Road

Rendering of the Karot hydropower station in Pakistan. (Photo from official website of China Three Gorges Corporation)

The Silk Road Fund is a medium- to long-term development and investment fund established to facilitate the Belt and Road Initiative (BRI) - an active exploration and a great practice to cement international cooperation and promote common development.

The organization has always been giving full play to its advantage in medium- to long-term equity investment since its establishment four years ago under the principle of openness, inclusiveness and mutual benefit.

Through market-oriented, internationalized, and professional operation, the Silk Road Fund is offering rich financing resources for overseas investment projects, promoting financial integration and synergy effects, and striving for win-win results and sustainable development.

So far, the Silk Road Fund has extended its business to Russia, South Asia, Central Asia, West Asia and North Africa, Southeast Asia, as well as Central and Eastern Europe. It is also actively seeking cooperation with partners in Europe, South America, and Sub-Saharan Africa.

When advancing projects, the Fund has enhanced mutual understanding with multilateral development organizations, relevant government departments, enterprises and financial institutions, reaching further consensus with them on the principle of openness, inclusiveness and mutual benefit.

All parties involved in the cooperation have a profound understanding that the construction of the BRI has created broad space for the development of enterprises. Through the Silk Road Fund, projects that have development potential and industrial value and might create economic benefits can gather more energy via market-oriented approaches, thus promoting mutual benefits and win-win results, and generating tangible profits for each party.

The Silk Road Fund is and will always be working to align projects and development strategies of the host countries and regions, and providing diversified financing solutions for major infrastructure projects of international cooperation that are conducive to sustainable development.

Up to date, approximately 70 percent of the organization’s committed capital has been invested in major international cooperation projects such as power station development, infrastructure construction, ports and shipping, as well as high-end manufacturing.

Under the joint efforts of the Silk Road Fund and other global investors and loaners, the Yamal liquefied natural gas project in Russia, the Karot hydropower station in Pakistan, as well as the concentrated solar power project and the Hassyan clean coal project in Dubai, United Arab Emirates are in smooth progress.

Sticking to the rules of the international market, conforming to environmental protection and sustainable development, and abiding by the laws and regulations of the host countries and regions, these projects have made positive contribution to the sustainability of local economy and livelihood, and promoted mutual exchanges on industries and technologies between different economies.

The Silk Road Fund has established sound relationship with multilateral development organizations, global investors and major transnational corporations, and is actively working with its partners to explore investment and cooperation opportunities in third-party market.

It helps align the advanced capacity and technology from China and developed countries with the development demand of the recipient countries and regions, accelerating the optimization of resource allocation in the global context.

In order to promote the docking between the BRI construction and the Juncker Plan of Europe, the Silk Road Fund cooperated with the European Investment Fund and established the China-EU Co-investment Fund. The operation of the China-EU Co-investment Fund is totally market-oriented. It will promote in-depth cooperation between Chinese and European enterprises and create synergy effects.

Besides, the Silk Road Fund also started a joint investment platform with General Electric. The two parties are teaming up to create investment opportunities in power, gas and oil, and new energy industries in Belt and Road countries, striving for larger value of the investment projects.

By exploring effective cooperation models of investment and financing through concrete practices, the Silk Road Fund has created valuable experiences that can be shared with other countries.

The organization is willing to join hands with more like-minded partners, to expand capital source for the Belt and Road construction, share resources, and build high-quality international cooperation.

(The author is Chairman of the Silk Road Fund)

Editor: 曹家宁