China Development Bank: high expectations, low figures

China Development Bank is a Chinese state-owned development bank established in 1994 and led by a cabinet minister at the Governor level, under the direct jurisdiction of the State Council.

Since the beginning of the 2000s, China Development Bank has been interested in the Romanian banking market and has analyzed the possibility of opening a branch in Romania. especially since the Chinese bank prefers to grant long-term loans and especially for infrastructure projects.

Then, in 2013, Romania’s ambassador to Beijing at the time, Doru Costea, said the Chinese bank could open a branch in Bucharest. The idea of opening such a branch came from the need for Chinese investments in some important objectives for Romania. And here we refer to pending projects such as the Rovinari Thermal Power Plant, the Tarnița Hydroelectric Power Plant and the Craiova-Pitești Highway. Other years of silence but good intentions followed. Only in 2019, a cooperation agreement was signed between China Development Bank and Eximbank Romania on credit guarantee. But nothing actually happened yet.

However, a business with the Chinese bank’s money was eventually developed. Goldwind International Limited, a division of Xinjian Goldwind Science & Technology Co., has installed 20 of its GW109/2500 turbines in the Mireasa wind farm, near Constanța.

The Mireasa 1 wind farm in Dobrogea. Source: romaniajournal.ro

The final beneficiary was Mireasa Energies SRL, part of the Monsson Group, controlled by the Swedish businessman Emanuel Muntmark, one of the largest wind farm developers in Romania. For the 50 MW Mireasa 1 Wind Farm in Dobrogea, Monsson Alma contracted a € 43 million loan from China Development Bank in 2015.

Monsson Alma has also developed the 600 MW Fântânele – Cogealac Wind Farm, but not with Chinese money.

 

Read more about the Chinese companies in:

Ukraine

Moldova

Bulgaria