China’s One Belt One Road (OBOR) Initiative also known as Belt and Road Initiative (BRI) is going through a huge crisis. China’s neighbouring States including Nepal, Myanmar and Pakistan have cancelled their projects. China’s BRI did not receive the applause China originally hoped for.
The Prime Minister of Nepal Sher Bahadur Deuba recently announced the cancellation of $2.5 billion joint project on constructing hydroelectricity power plants. He accused China for neglecting the financial obligations. Last month, Myanmar reiterated its disinterest in constructing major hydroelectricity power plants. Myanmar also cancelled a cooperative dam building project three years ago.
On Tuesday, Pakistan cancelled the $14 billion Diamer Bhasha Dam project. China placed strict conditions including taking ownership of the project. The Pakistani Government cancelled the project and plans on funding from their own resources.
Water and Power Development Authority (WAPDA) Chairman Muzammil Hussain said, “ Chinese conditions for financing the Diamer Bhasha Dam were not doable and against our interests.”
The Chinese Government stopped funding the China Pakistan Economic Corridor (CPEC) Project. The CPEC is the only operational project of the OBOR. The Chinese officials left Pakistan stunned by ceasing the funding for three road projects under CPEC. Chinese officials stated they will resume the funding after issuing new procedures. Corruption in CPEC projects is a concern, they added.
On Saturday, Sri Lanka joined the OBOR project with the launch of operations at the Hambantota Port. China and Sri Lanka started a joint venture. Sri Lanka handed the Hambantota Port over to the China Merchant Ports Holdings (CMPH) on a 99 year lease agreement.
The Sri Lankan Prime Minister Ranil Wickremesinghe said, “Today we have made arrangements for the management and long term success of the Hambantota Port. This Sri Lankan and Chinese joint venture, which has taken over the management of this port, and its operations will ensure an additional port in the Indian Ocean.”
This will definitely help strengthen our economy, Wickremesinghe added.
