Business news

MINSK, 11 May (BelTA) – A Chinese financial corporation will finance the second phase of the project designed to modernize Orsha Linen Mill, BelTA learned from Konstantin Cherny, Deputy Chairman of the Economy Committee of the Vitebsk Oblast Executive Committee, as he commented on results of the first part of the program of the Belarusian-Chinese interregional business forum in Minsk.

The agreement on lending $67 million for the project has been signed by the two sides in accordance with preliminary arrangements. The second phase of the retooling project is supposed to take four years, but based on the experience of cooperation with China the Vitebsk Oblast administration believes the work may be done within a shorter period of time.

The Vitebsk Oblast administration, a Chinese overseas economic development company, and the National Agency of Investment and Privatization of Belarus have signed an agreement on implementing projects in the sphere of waste processing, timber processing, and power engineering in Vitebsk Oblast. “This is not exactly something concrete but for the first time we have managed to convince Chinese partners to consider the possibility of their directly taking part in these industries by setting up enterprises,” added Konstantin Cherny.

Raising direct Chinese investments is one of the key goals of such major business meetings for Vitebsk Oblast. For instance, the invitation to directly take part in the construction of the Beshenkovichi hydropower plant was one of the proposals voiced by the Belarusian side during the business matchmaking session. In other words, it will be necessary to build the facility using the turn-key principles, operate the facility for some time, getting profits and interest from the investments, and hand over the facility to the Vitebsk Oblast electrical company Vitebskenergo for consequent operation.

Apart from that, during the forum the Belarusian city of Polotsk signed an interregional agreement with the urban district Mudanjiang of Heilongjiang Province. “Twinning relations had been established between Vitebsk Oblast and Heilongjiang Province before as well as between their capitals — Harbin and Vitebsk. The Chinese side suggested getting other regions involved in cooperation, too,” explained Konstantin Cherny. The proposal resulted in the signing of the agreement: the sides have plans for humanitarian exchange, cooperation in the spheres of trade, economy, and culture.

The visit of the delegation of Heilongjiang Province government and the business circles to Belarus will continue with the visit to Vitebsk on 12 May. The guests will be made familiar with investment projects of the oblast capital and the free economic zone Vitebsk, will visit the enterprises that reside in the zone and the Vitebsk Oblast electrical company Vitebskenergo. The delegation will also go on a tour of the city, will be made familiar with cultural and historical places of interest.