Airport idle, as jumbos take the highway
nor did it seek permission to deviate from procurement law to enable the CCCC to handle the project.
A well-placed source told the Mail & Guardian that a study (seemingly completed in 2014) conducted into the Moloto Rail Development Corridor found it to be unfeasible. The transport department has ignored repeated requests for comment for the past two weeks.
At R57-billion, the deal will be among the largest infrastructure projects the Exim Bank has funded in Africa.
“The Chinese view is: ‘You just tell us what to do and we will do it,’” said Ross Anthony, director of the Centre for Chinese Studies at Stellenbosch University. “The problem will usually lie with the host government, which perhaps may be trying to override some sort of internal process. Host countries should be held up to more scrutiny.”
Indeed, in the case of Sri Lanka, former president Mahinda Rajapaksa’s infrastructure drive was widely criticised. The Hambantota infrastructure projects continue to devour the country’s economy. As reported by Quartz, the country’s debt contracted with China amounts to $8-billion, and 95.4% of all government revenue goes to debt repayment. In July, the Sri Lanka government signed a 99-year lease agreement for the Hambantota port with the China Merchant Port Holdings that will bring in more $1-billion, which will go towards paying off the debt to China.
If it were an American firm in the mix, the focus would probably be on the South African side of the equation, said Anthony. “But there is a phobia about China and its processes.”
Although Chinese companies are increasingly honouring obligations to employ Africans for projects on the continent, Anthony said the Exim Bank was mandated to support Chinese jobs through the projects it finances abroad. This was not unusual, he said, as American and Nordic companies do the same. It is seen as a win-win for China and the host country it finances.
The state and companies aligned with it, such as the Exim Bank and CCCC, are “painfully aware” of the poor image they have in Africa, said Anthony, as China embarks on a “charm offensive” to move away from a corrupt image.
“Those companies, more than other Chinese actors, will seek to do things more above board … In terms of global governance and corporate social responsibility, Chinese companies are changing,” said Anthony.