Mogilev Oblast prepares investment projects to spend Chinese loans

16 December 2015

MOGILEV (BelTA) – Over 40 investment projects worth roughly $200 million have been prepared in Mogilev Oblast for the sake of utilizing Chinese loans, BelTA learned from Viktor Nekrashevich, Deputy Chairman of the Mogilev Oblast Executive Committee, before the expanded-participation session of the Mogilev Oblast Entrepreneurship Promotion Council on 16 December.

According to the source, investing in the region will primarily focus on Mogilev Oblast's southeastern parts. All the projects, which promise to generate jobs, taxes and decent salaries, will not be left without support. Among the prioritized industries Viktor Nekrashevich mentioned the processing of agricultural products, alternative energy resources, and a number of hi-tech branches of the national economy, including those relating to the extraction and processing of locally available commercial minerals. As an example the deputy head of the Mogilev Oblast administration mentioned local peat-extracting enterprises that can work together with Chinese partners to extract peat and use it to make mineral compound fertilizers for the sake of selling them to China and other countries.

According to the source, representatives of Mogilev Oblast peat-extracting enterprises have already been to China. They examined the opportunities and the demand for these products. Certain agreements on cooperation were reached with a number of companies. Today China is interested in restoring its soils using state support. Fertile good-quality fertilizers based on lignin and peat are needed for that. The investment project is really feasible and can be economically viable in western parts of Mogilev Oblast where abundant peat deposits are close to the surface.

Viktor Nekrashevich said that local private companies had submitted about 80% of the total number of applications for resources available via the Chinese credit line. “Our businessmen intend to use their resources as much as possible in addition to raising new funds. Lending to economic clusters is possible since the minimal loan sum is close to $300,000. We are going to try and reach all of those, who are interested in developing their businesses and territories,” said Viktor Nekrashevich.

The expanded-participation session of the Mogilev Oblast Entrepreneurship Promotion Council gathered representatives of the Economy Ministry, the Finance Ministry, the Development Bank of the Republic of Belarus, Belarusbank, and about 100 representatives of the Mogilev Oblast business circles. The session focused on conditions and schemes for spending the Chinese credit resources for the sake of implementing investment projects.

Ministry of Foreign Affairs of the Republic of Belarus