China's One Belt One Road Could Make Or Break This Poor European Country (HBO)

China's one belt one Road initiative could be the most ambitious infrastructure plan in history it's designed to reconnect places along China's ancient Silk Road trade route and way beyond there are currently nine hundred billion dollars worth of projects that are planned or underway some European countries are already feeling the impact since 2012 China has sprinkled an estimated 15 billion dollars in infrastructure investments over Central and Eastern Europe that means new roads railways and ports for small countries that otherwise couldn't afford them but for the Chinese that money isn't always a gift it's often alone and for places like Montenegro it's a massive leap of faith so the project of the century is what they've called this highway the biggest project in the history of the country it's probably going to be one of the most sophisticated challenging highways in Europe because of the terrain blood and gergich is a researcher who's been following the construction of the barbary or a highway since it started three years ago his projected path will connect the port city of bar with the Serbian town of bull Yara a journey which now takes over four hours on two lane roads the highway could cut that travel time in half with over a hundred miles of roads bridges and tunnels it's estimated cost is 3.2 billion dollars according to gergich more than half of Montenegro's annual GDP the government desperate to modernize after breaking away from Serbia in 2006 have been promising its people this highway for over a decade when they went looking for backers to finance it Western institutions weren't interested and what were the main reasons why they said look it's just not feasible as far as we're concerned they didn't see any financial or economic reason behind it during a six hundred thousand people it has a traffic volume which is quite low it can increase but not so much as to make this highway sustainable what's a country without this is actually the only country without the highway in Europe and without McDonald's as far as I know the whole story was threatening to be just another political promise and then finally Chinese game and so what's done that's the part of the section of the highway that's being built by the Chinese company the Chinese government guaranteed alone to Montenegro worth more than 1 billion dollars to finance the construction of 125 miles stretch of the road a condition of that line was that a Chinese state contractor would do 70 percent of the work Osamu jungle so mr. G why Sir jr. nearly double my dose on with you and what is forego do you go to don't go Charmander so we are going to know what I don't want what do you wanna walk mean yes sir thank you Kang Chi Fei has been deputy manager here for nearly two years to be shown watch it all mucho chip I borrow your thumb do you film our tile each year enjoy warm Antigua stop with a corner those are thoughts on goal either convert or high rider channel so the turn gonna highlight to you the quality bar by Unilever Koyukuk or I go to Nagoya Aichi Japan achieve our goals to come on Michigan to know each other children knows what to do China sees projects like this is a proving ground in Montenegro state back companies can learn the quirks of local labor and EU regulations before aiming for more lucrative work in Germany France and Belgium I'm just interested to know how much you feel that you're representing your country whilst you're here to let me happy to see you wallet around your home all three times a holiday Michelle was a tour and tour it's all very harmonious except the China isn't just giving Montenegro the money the World Bank and the IMF believe that the Chinese loan which Montenegro will pay back the 2% interest between 2020 and 2040 following a five year grace period is a threat to Montenegro's long-term stability is highly is not to Chinese unless easy what is it this is the investment government of Montenegro are taking notice it is the difference that just LOF bellum is the Banton egan government point person for cooperation with China tell me about the thought behind taking such an enormous life Chinese but I already told you you have to pay for something is it necessary to explain why we were building your highway in 21st century the World Bank isn't made an assessment that as a result of taking this loan public debt to the share of GDP will rise above 80 percent we are still have enough air to breathe but we are aware that if we are going further with the credit loans in the state guarantees that can be problem but up to now we are aware of the risk but we are not in a dangerous position we want to raise our export we want to become a member of you you cannot do it if you are not connected well-connected the the world the risk of course is that Montenegro won't be able to pay back the loan in the terms of Montenegro still stipulated in the event of default China can even seized parts of Montenegro's territory their companies will also pay little to no tax while working there former opposition MP yellow Sava calles each is concerned the government is digging itself into a hole the World Bank seems to believe that is going to plunge this country into some sorts of great recession beloved even on a tie out of Port Orchard a Ceredigion Rugel it wretched Gordon economy economic inaudible style Nicole Nalepa retrieve a pottery barn out of I Pro act normal I'm appalled most imminent the Badal relic a chance Arizona EDA Beto nodding in ROTC a moral perspective solder solder Ober not hear it sir Navarro will passed me see the vamp rotator don't want an unfinished motorway but the truth is you don't know how you gonna pay for the next two phases they do not know what will be the model the groove of the economy which will be growth thanks to do highway we will earn enough money to pay for higher the only way to avoid degree is risk we do nothing you have to take a risk you have to be creative innovative that is what we are doing [Music] you

Channel: VICE News

Views: 1,390,584

Keywords: VICE News, VICE News Tonight, VICE on HBO, news, vice video, China's New Highway Could Make Or Break This Poor European Country, china bridge and road corporation, China one belt one road, China silk road, transportation, construction, Europe, montenegro, innfrastruture investment, small countries, Chinese money, economy, project of the century, China highway, one belt one road initiative, silk road trade, Asia trade, business, finance, chinese government, loan, world bank

Id: d0gk_m0gZ0A

Length: 7min 13sec (433 seconds)

Published: Wed Jun 13 2018