Will pressure make Chinese aid more transparent?

IRIN

A worker collects rubbish at the Chinese-built Kamchay Dam on the Toek River in Kampot Province. The dam is one of many being built in Cambodia by Chinese companies. PHOTO/PHA LINA

Critics have long characterised China as a secretive donor in economically poor but resource-rich countries, funding infrastructure construction in an unspoken bid for business deals and access to natural wealth and land.

While China disburses aid with a scant paper trail, analysts say strong-arming its government to boost transparency – and aid efficacy – may hurt countries in need.

Chinese-funded projects have become ubiquitous in Cambodia, Laos and Myanmar, countries once passed over by traditional donors.

In river-rich Laos, a government development plan calls for 55 new dams to generate hydroelectric power, many of them funded by Chinese state-owned companies.

Media there reported that China’s government recently signed five agreements pledging more than US$30 million to build government offices.

Prime Minister, Hun Sen inaugurated one of the largest Chinese construction projects in the Cambodia in December 2011, a dam in Kampot province. This project comes on top of $1.2 billion the Chinese government pledged to Laos in 2010 – more than any other bilateral or multilateral donor.

Officials also welcomed Chinese aid in August 2011, when the World Bank suspended new loans to Cambodia after finding that a Bank-financed land-titling project failed to secure property rights for residents facing eviction.

Cambodian leaders – including the prime minister – have repeatedly stated they are not worried about losing World Bank loans because they prefer “no strings” Chinese aid.

The Phnom Penh Post for more