Liberia+Infrastructure

=China Union Unlikely To Fulfill All Development And Infrastructure Promises Over The Next Five Years=

Executive Summary:
It is unlikely that Chinese companies, specifically China Union, will fulfill all of their promises in regard to improving Liberia's infrastructure within the next 5 years. China Union, who purchased the Bong mines, have yet to deliver on their commitments to build and improve infrastructure in the surrounding area. Social development projects that they promised are also not on schedule. In September of 2013, China Union addressed these issues stating that they still had intentions of development in the region around the Bong mines. Despite their stated intentions, China Union has yet to show signs of meeting their commitments. In October of 2013, the Superintendent of Bong County stated that China Union has yet to provide USD 200,000 in scholarships promised in the Mineral Development Agreement between China Union and the Liberian government.

Discussion:
Over the past five years, Chinese investors have funded a total of 4 large-scale infrastructure projects totaling approximately USD 2.6 billion. Among these, only one project corresponding to PNGSM. China and Liberia have recently had talks regarding the possibilities of China funding more infrastructure projects, including the pavement of the Gbarnga-Mendicorma and Ganta-Fishtown highways, a new terminal and runway for the Robert International Airport, and he consolidation of power transmission and distribution lines in the Monrovia area. However, no agreements have been made concerning these projects as of 12 October 2013.

China Union, which purchased the Bong mines for an amount of approximately USD 2.6 billion, pledged to develop the mine and the region around the mine, both socially and in regards to infrastructure. However, as of 2013, China Union has failed to meet their obligations for these infrastructure projects. As if 13 September, China Union had yet to install basic mining infrastructure and heavy machine at the mine itself. The road connecting the mine to Kakata is in disrepair and has yet to be rehabilitated, and a hospital in the region lacked essential drugs for treatment. China Union reaffirmed their pledge to socially develop the region around the Bong mines in September of 2013. They stated that the road leading from the Bong mines was still intended to be refurbished, but they were unable to complete it at the time because it was the rainy season and that it would be completed once the dry season comes. China Union also recommitted itself to improve the quality of life of the citizens of their operating region including providing professional medical services to the locals, distributing local scholarships, renovation of old facilities, and the setting up of an office that would serve as a liaison between the community and China Union. Despite these reaffirmed promises, China Union still has failed to meet their commitments. In October 2013, the Superintendent of the Bong County, Selena Polson-Mappay, stated that the county had yet to receive the promised USD 200,000 in scholarships for students in the region.

2009 || 9.8 million || N/A || China government || Construction of Ministry of Health facility || Misc. || 2011 || 8 million || Paynesville || China government || Construction of vocational training center || Misc. || 2010 || 7 million || Gboveh || China government || Construction of Gboveh Community College || Misc. ||
 * Date || Cost (USD) || Location || Key Chinese Companies Involved || Description || Corresponds to ||
 * July
 * March
 * October

Analytic Confidence:
Analytic confidence is medium. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise on the subject, did not use a structured analytic method, worked alone, and collaborated with a team. The subject is moderately complex and the deadline was moderately difficult to meet.


 * Analyst****:** Jared DeTal