Standard Chartered calls for increased private investment in BRI projects

Standard Chartered Bank called for more private sector investments on Monday in infrastructure projects connected to the China-proposed Belt and Road Initiative (BRI).

"The BRI is becoming more and more open, and we think that public-private partnerships (PPP) are one of the options to implement the projects," Jean Lu, managing director, head of Global Banking Corporate and Institutional Banking Standard Chartered Bank (China), said at a media briefing in Nairobi.

Lu said that currently most of the BRI infrastructure projects are financed by governments and require huge financial outlays, adding that the use of PPP could be an avenue to reduce government debts.

"I have talked to a number of Chinese firms who also agree that PPP is the way to go," she said.

The Standard Chartered Bank official noted that the use of private sector funds for BRI projects has numerous advantages.

"Before commercial banks finance projects, they are screened to ensure that they commercially viable and hence ensure that debt is sustainable," Lu added.

Standard Chartered Bank, with 70 percent of its global footprint overlapping with BRI countries, has committed to financing BRI projects to the tune of 20 billion U.S. dollars by 2020.