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China's proposed new Silk Road hit by political, financial hurdles

ANI  |  Hong Kong [China] 

Political and financial obstacles are reportedly coming in the way of China's plan for a modern Road in Eurasia that would majorly include projects linked to railways, ports and other facilities.

According to reports appearing in various media, projects coming under the (OBOR) conceived by Chinese are being canceled, renegotiated or delayed.

From to to Hungary, disputes are reportedly surfacing about costs or complaints by host countries that they are getting too little out of projects built by Chinese companies and financed by loans from that must be repaid.

"is one of the countries that is in China's hip pocket, and for to stand up and say, 'I'm not going to do this with you,' shows it's not as 'win-win' as says it is," ABC News quoted Robert Koepp, an in Hong Kong for the Economist Corporate Network, a research firm, as saying.

He was referring to Pakistan's water authority- WAPDA- rejecting China's demand for ownership stake in the last November.

OBOR is a loosely defined umbrella of Chinese-built or financed projects spread across 65 countries from the through to and They range from drilling in Siberia to construction of ports in Southeast Asia, in Eastern and power plants in the

It is well known that governments from to to are uneasy about trying to use OBOR to develop a China-centered political structure that could erode their influence.

on the other has consistently maintained that OBOR is a purely business venture, and has no political connotations to it.

Among projects that have been derailed or disrupted:

.Nepal canceled China's plan to build a USD 2.5 billion dam over violation of bidding rules

.The is assessing whether violated the trade bloc's rules by awarding contracts to Chinese builders of a high-speed railway to neighbouring without competing bids

. A Chinese company's bid to build a USD 3 billion refinery in were canceled to financing difficulties

. has suspended work on a USD 15 billion high-speed railway over too little business for Thai firms

. In Tanzania, negotiations with and another investor have restarted over ownership of a planned USD 11 billion port in Bagamoyo. The is keen to know what would be its share.

says consulting firm has compiled a database of USD 1.8 trillion of investments announced across Asia, and the that include Chinese money or other involvement. Many are still in planning stages and some up to three decades in the future.

Pakistan and China are developing facilities for USD 60 billion, including power plants and to link China's far west with the Chinese-built on the

None of these countries apparently wants to experience what has gone through. Colombo has had give up 80 percent stake in after falling behind in repaying USD 1.5 billion borrowed from to build it.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, January 12 2018. 08:25 IST