Iraq top recipient of China’s Belt and Road Initiative financing for infrastructure projects in 2021, study shows

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China’s engagements across Belt and Road Initiative countries stood at US$59.5 billion in 2021, almost the same as US$60.5 billion in 2020, report shows

China and Iraq are cooperating to build the US$5 billion Al-Khairat heavy oil power plant in Karbala province and also on an airport, solar and other projects

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Iraq fans cheer for their team during a football match between Iraq and Qatar in Basra in this file photo taken on March 21, 2018. Photo: AFP

Reuters

Published: 9:04pm, 2 Feb 2022

Iraq was the top target for China’s Belt and Road Initiative in 2021, receiving US$10.5 billion in financing for infrastructure projects including a heavy oil power plant, a study published on Wednesday said.

In total, China’s engagement through investments and contractual cooperation across the 144 Belt and Road Initiative countries was US$59.5 billion, in line with the US$60.5 billion in 2020, according to the report by the Green Finance & Development Center at Shanghai’s Fudan University.

However, in Arab and Middle Eastern countries, investment last year rose by about 360 per cent and construction engagement by 116 per cent compared to 2020, the study said.

Iraq, where the United States ended its combat mission last year, has become the third-biggest partner in Belt and Road Initiative for energy engagement since 2013, after Pakistan and Russia, the study said.

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China and Iraq are cooperating to build the US$5 billion Al-Khairat heavy oil power plant in Karbala province and China’ Sinopec has won the contract to develop Iraq’s Mansuriya gas field near the Iranian border. The two countries are also cooperating on an airport, solar and other projects.

China’s Belt and Road Initiative contract values in 2021 were US$45.6 billion, up from US$37 billion a year earlier, while investments shrank to US$13.9 billion from US$23.4 billion.