(Bloomberg) — For more than two decades, Zimbabwe has been trying to break ground on a giant coal-power complex by the world’s biggest man-made reservoir. China just agreed to get the $4.2 billion project underway.
The development near the southern shore of Lake Kariba is good news for Zimbabwe, where a collapsing economy and erratic policies have deterred foreign investment for the past 20 years.
But it flies in the face of a growing global consensus that has seen financial institutions from Japan to the US and Europe shun investments in coal projects. That retreat leaves the way open for Chinese companies—many with state backing—even at the risk of undermining the spirit of China’s international commitments to fight climate change.
“We are very pleased that the project is going ahead, especially as major banks in the world are forced to stop financing coal-fired power stations,” Caleb Dengu, chairman of RioZim Energy, the company that owns the project, said in a response to questions.
“This is testimony of Chinese commitment to development projects in Africa. The Chinese are interested in joining hands.”
For the rest of this article: https://www.bloombergquint.com/global-economics/belt-and-road-china-stands-alone-in-backing-africa-coal-projects