4. US Foreign Assistance Tied to US Firms
• USAID-hired contractors providing services, works in beneficiary
countries
• OPIC financing dependent on US investor participation
• ExIm Bank financing dependent on US manufacturing content
• US TDA funding dependent on US supplier opportunities
9. China has stepped in where multilaterals have
failed
• Example: Kenya-Uganda Rail Concession
• Advised by IFC, Kenya suffered an unsuccessful procurement process
• Concessionaire lacked financial, technical capacity to delivery needed
investments and operational improvements
• Restructuring, fraud investigations ensued
• China’s offer of the Mombasa-Nairobi Standard Gauge Railway Project
was warmly received
• Railway is on target to complete construction in July 2017
10. Conditionality
• Required actions on the part of the beneficiary government to secure
loans and/or grant funds
• Often tied to policy actions whose success may or may not be proven
• Can provide additional burdens to beneficiary without corresponding
results
• Helps to sow frustration and distrust of sponsoring organization
• May lead to increased support for G2G and other alternatives
12. Increased Cooperation (Leadership) from the
Chinese
• EBRD Shareholder
• Increased World Bank quotas
• AIIB, Silk Road – major multilateral initiatives
• Cooperation with existing multilaterals & frameworks at individual
project level
14. Conclusion
• Chinese approaches are not much different from existing Western
approaches, considering bilateral development programs, European
SOE activity and new procurement approaches
• Chinese initiatives often serve the least developed countries where
even donor activity is limited
• China offers expeditious and viable options where multilaterals and
others have failed or struggled, providing much needed competition
in the development landscape
• China is increasingly cooperation (leading) development initiatives
and collaboration with existing institutions
15. Thank you!
Brien Desilets | Managing Director | Claret Consulting
8000 Towers Crescent Drive | Suite 1300 | Vienna, VA 22182
bdesilets@claretconsult.com | +1 703 760 4491