China-Portuguese Speaking Countries fund comes to Macau

The USD1 billion China and Portuguese-speaking Countries Cooperation and Development Fund  temporary headquarters were inaugurated yesterday

The fund’s temporary office is located in the Business Support Center, a unit under the Macau Trade and Investment Promotion Institute. It will later move to a dedicated trade cooperation service platform complex for China and Portuguese-speaking countries, to be built close to the Nam Van lake.

Together with enterprises from mainland China and Macau, the fund signed two strategic agreements on investment and cooperation between Macau and the Portuguese-speaking countries.

On the sidelines of the ceremony, IPIM president Jackson Chang said that since November 2016, different representing offices in mainland China, along with IPIM, have already received 21 inquiries and one application regarding the fund.

Following the fund’s official establishment in Macau, IPIM will step up publicity efforts and organize more economic and trade activities, as well as promote the fund in Portuguese-speaking countries. IPIM hopes to enhance mainland enterprises’ knowledge of the fund.

The director of the Macao Economic Services (DSE), Tai Kin Ip, said the fund will offer Macau new financial services, and will provide enterprises with information regarding investments in and from China and the Portuguese-speaking countries.

The new fund will provide consultation services and assist in securing project financing for enterprises in Macau, while helping enterprises from mainland China and the Portuguese-speaking countries to get involved in China’s Belt and Road initiative.

The fund is expected to strengthen Macau’s role as the center of financial and commercial cooperation for China and the Portuguese-speaking countries.

The fund was one of six collaborative measures announced by the central government at the third Ministerial Conference of the Forum for Economic and Trade Cooperation between China and Portuguese-speaking Countries in 2010.

Since its official establishment in June 2013, the forum has sought to bring about financial, investment and trade cooperation between enterprises from China and the SARs, as well as the Portuguese-speaking countries.

The fund, which controls capital of USD1 billion, was co-financed and established by the National Development Bank and the Macau Industrial and Commercial Development Fund.

The China-Africa Development Fund has been entrusted with the administration of the fund, which had only approved two projects (one each in Mozambique and Angola) as of October 2016.

According to data released yesterday, the fund is assessing over 20 projects and aims to extend its coverage to all Portuguese- speaking countries.

During the keynote speeches at the ceremony, several people commented on the importance of infrastructure.

Tomas Kuta, Senior Vice President of Sales at Volvo Construction Equipment, stated that it is important to understand the trends shaping the world, such as “urbanization and demographic changes.”

He noted that by 2030, 60 percent of the world’s population will live in cities, and that the major contributors to this urbanization will be Asia and emerging economies. He also touched on topics such as the importance of climate change and the growing global network of connected devices and computers.

“In the next three years, there will be 75 billion interconnected devices, […] this is just the start,” he said. 

The launch of The Belt and Road Infrastructure Development Index (2017) and The Report on the Belt and Road Infrastructure Development Index (2017) took place after the speeches.

The latter index is the first of its kind regarding infrastructure construction and investment internationally. According to the report, east European countries, and the Association of Southeast Asian Nations are offering strong advantages in terms of infrastructure development. Industries such as transportation and electric power will be key engines in the development of international infrastructure.

Fang Qiuchen, chairman of China International Contractors Association, noted that Indonesia, Iran and India are among the top 10 countries for infrastructure development in 2017.