[QODLink]
Africa
China 'offers South Sudan $8bn for projects'
Beijing to supply development funds for projects such as hydropower and roads, South Sudan information minister says.
Last Modified: 29 Apr 2012 08:18
The loan comes after talks between Kiir and Li Keqiang, China's vice premier, in Beijing [Reuters]

China has offered South Sudan $8bn in development funds for road, hydropower, infrastructure and agriculture projects, South Sudan's information minister has said.

The loan came after Salva Kiir, the country's president, visited Beijing to secure support from China, which has major oil interests in both South Sudan and its northern neighbour Sudan.

A long-brewing conflict between Sudan and South Sudan over oil export fees, border demarcation and citizenship has halted nearly all oil production in the two countries, who sit atop one of Africa's most significant oil resources.

In-depth coverage of North-South strife over border

South Sudan depends on oil for nearly 98 per cent of its state revenue and the shutdown has puts its economy under pressure.

"China has offered financial funding to the value of $8bn for major development projects," Information Minister Barnaba Benjamin said.

The funds will be provided over the next two years and the projects will be conducted by Chinese companies, Benjamin said.

China is already the biggest investor in oilfields in South Sudan, through state-owned Chinese oil companies China National Petroleum and Sinopec.

The Asian economic powerhouse has had to play a delicate balancing act with the two countries, since Beijing is also one of Sudanese President Omar Hassan al-Bashir's major supporters.

When landlocked South Sudan seceded from Sudan last year, it took three-quarters of the region's oil production, while the pipelines to export the oil are mostly in Sudan.

South Sudan is considering building two alternative pipelines, one to a port in Kenya and another through Ethiopia and Djibouti.

Source:
Reuters
Topics in this article
People
Country
City
Featured on Al Jazeera
'Justice for All' demonstrations swell across the US over the deaths of African Americans in police encounters.
Six former Guantanamo detainees are now free in Uruguay with some hailing the decision to grant them asylum.
Disproportionately high number of Aboriginal people in prison highlights inequality and marginalisation, critics say.
Nearly half of Canadians have suffered inappropriate advances on the job - and the political arena is no exception.
Featured
Women's rights activists are demanding change after Hanna Lalango, 16, was gang-raped on a bus and left for dead.
Buried in Sweden's northern forest, Sorsele has welcomed many unaccompanied kids who help stabilise a town exodus.
A look at the changing face of North Korea, three years after the death of 'Dear Leader'.
While some fear a Muslim backlash after café killings, solidarity instead appears to be the order of the day.
Victims spared by the deadly disease are reporting blindness and other unexpected post-Ebola health issues.