China is bolstering its geopolitical influence in the Pacific by “branding” Asian Development Bank projects – funded in significant part by Australian taxpayer dollars – as Chinese projects, the Australian government says.
On the island of Bougainville, an autonomous region of Papua New Guinea to Australia’s north, the state-owned China Railway Construction Corporation has begun work to strengthen the runway at Kieta-Aropa, on the outskirts of the largest city.
When the government of Bougainville announced the upgrade of the airport, there was no mention of the Asian Development Bank – who is funding the project – only the state-owned China Railway Construction Corporation.
And when an inauguration ceremony was held last month at the airport’s runway, the president of Bougainville and the prime minister of Papua New Guinea broke the ground with a shovel wearing hard hats adorned with the name and logo of the CRCC. An ADB sign was visible in the background.
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Australia’s minister for the Pacific, Pat Conroy, said the “branding” of multilateral development projects had been a consistent frustration for the government.
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“The largest donors to the ADB are countries like Japan and Australia, which is part of my frustration … because people driving past would assume it’s funded by China because you see Chinese state-owned enterprise branding everywhere, but it’s funded by the taxpayers of countries like Japan and Australia.”
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The ADB is a major development backer across the Pacific. Australia is the fund’s second-highest contributor after Japan.
Asked if he felt China was seeking to bolster its influence through multilateral organisations like the ADB, Conroy told the Guardian: “I think that’s a reasonable conclusion.
“I’m sure they seek to make money out of these projects as well, but if they’re able to brand them with a [state-owned enterprise]’s name, then there’s a secondary benefit, obviously.”
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Emma Veve, director general of the ADB’s Pacific Department, said the bank was expanding across the region, with strong support from countries like Australia.
“ADB is proud of its work and committed to ensuring that project information is visible to the public during the execution of construction works and that there is a precise acknowledgment of project funding sources.”
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