Silk Road Fund makes first investment

 

The Silk Road Fund’s first overseas investment project is expected to demonstrate a new financing model that supports infrastructure construction and improves connectivity across the regions involved in the “Belt and Road Initiative”, experts said on Tuesday.

The $40-billion (S$54 billion) Silk Road Fund, set up in December 2014, will inject capital in China Three Gorges South Asia Investment Ltd, a subsidiary of China Three Gorges Corp, to develop the Karot hydropower project on the Jhelum River in northeastern Pakistan.

The project will be funded through a mix of equity and loan investments, said a statement released on the website of the People’s Bank of China, the central bank.

“The investment structure includes global investors and follows international standards, which means the project is feasible and can achieve mutual benefit and win-win results for partners,” Jin Qi, chairwoman of the Silk Road Fund Co Ltd, told China Daily in an exclusive interview.

The infrastructure construction project, under the framework of the China-proposed Silk Road Economic Belt and the 21st Century Maritime Silk Road initiative, is expected to ease electricity shortage in Pakistan and support its economic development, said Jin.