Greece and China together in the energy sector
Business File, September-October 2017, No. 112
With two MoU signed, PPC declares ready to accelerate the projects and investments in the energy sector with China.
Greece and China, taking advantage of their mutual interests in the energy sector, are now trying to maximise the opportunities in common investments. Greece is a natural gate and a significant energy hub in the Balkan area and Central Europe.
China through the OBOR (One Belt One Road) project needs Chinese investments to predominate in this crucial geographic area. Their common ground was Thessaloniki were took place the 9th September the Strategic Conference of “Investments Opportunities in Southeastern Europe-Trends and Challenges in the energy sector”.
During the Conference the Greek PPC signed a Memorandum of Understanding with CDB (China Development Bank).
For the Greek side this MOU is a clear indication that PPC is planning the reconstruction of the Greek energy sector as well as the potential investments in the broader area in the Balkans.
Meanwhile, the PPC has signed in midAugust another Memorandum of Understanding with the Chinese SUMEC Group aiming at projects of R.E.S in Greece and the broader area.
It is more than obvious that the Greek Government wants to play hard the “Chinese card” in the energy sector, for projects and investments in the Greek area and abroad.
Yet, this energy road in not made of silk. The European Commission as well as member states, for example France, are thinking loudly to impose restrictions through screening of countries and companies willing to surrender easily to Chinese investments. Jean Claude Junker, the president of the Commission, intends to ask the mandate to negotiate new free trade agreements and proposes a strict framework for screening foreign investments in the European area and a common European framework to address foreign buyouts.
China Development Bank (CDB)
China Development Bank (CDB) was founded in 1994 as a policy fi nancial institution under the direct leadership of the State Council. It was incorporated as China Development Bank Corporation in December 2008, and offi cially defi ned by the State Council as a development fi nance institution in March 2015. CDB has a registered capital of RMB 421.248 billion. Its shareholders include the Ministry of Finance of the People’s Republic of China (36.54%), Central Huijin Investment Ltd. (34.68%), Buttonwood Investment Holding Co., Ltd. (27.19%) and the National Council for Social Security Fund (1.59%). CDB provides medium- to long-term fi nancing facilities that serve China’s major longterm economic and social development strategies. By the end of 2015, its assets grew to RMB 12.62 trillion, a balance of loans of RMB 9.21 trillion, and a cumulative recovery rate of 98.78% that continued to lead the industry for the sixteenth consecutive year. CDB is the world’s largest development fi nance institution, and the largest Chinese bank for foreign investment and fi nancing cooperation, long-term lending and bond issuance. It ranked 87th on the Fortune Global 500 list in 2015.
Dear Business File reader
Subscribe now for unrestricted access to BF
Buy the September-October 2017 issue