Eritrea+Infrastructure+Projects

=Corresponding PNGSM Infrastructure Investments Such As China's EXIM Bank Loaning USD 60 Million TO ENAMCO For 40 Percent Of The Bisha Mine Are Likely To Continue At A Slow Pace Over The Next Five Years=

Executive Summary:
Chinese corresponding PNGSM infrastructure projects in Eritrea such as China's EXIM Bank's USD 60 million loan to give ENAMCO the ability to buy 40 percent of the Bisha mine are likely to continue, although at a slow rate, for the next five years. Eritrea has strategic minerals, such as the gold, copper, and zinc located in the Bisha Mine, that China will always be searching for. These corresponding PNGSM infrastructure projects are used to help expedite PNGSM exports as well as keep good bilateral ties with the Eritrean government. Chinese companies also involve themselves in non-corresponding PNGSM projects likely to retain these positive bilateral ties with the Eritrean government.

Discussion:
Although Eritrea currently has a lack of petroleum and natural gas, Eritrea is rich in strategic minerals such as gold, potash, zinc, copper, and salt. The Bisha Mine is currently in its third year of production of gold, copper, and zinc, and is 40 percent owned by the Eritrean government after a loan of USD 60 million. Eritrea makes a USD 1 million profit a day from its 40 percent share. Infrastructure projects such as the Bisha Mine show how China is still interested in undeveloped countries, using these corresponding PNGSM projects to eventually persuade the Eritrean government for its natural resources if any are discovered.

Miscellaneous Infrastructure Projects
 * **Date** || **Price (USD)** || **Location** || **Key Chinese Companies Involved** || **Description** || **Corresponds To** ||
 * Dec 2011 || 100 million || Eritrea || LiuGong || LiuGong to provide 1000 machines including construction machines, firefight trucks, big and small lorries, trucks, tankers, concrete pump trucks, excavators, graders, bulldoxers, rollers, tractors, forklifters, etc. || Misc. ||
 * 29 July 2012 || 61.54 million || Eritrea || China SEFCO || SFECO to provide Eritrea with various machinery in the fields of agriculture, mining, transport and infrastructure as well as Expand Hirgigo Power Plant || Misc. ||

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


 * Analyst**: David Bott