China's funding of major infrastructure projects in Southeast Asia has fallen over $50 billion short of its commitments, with only a little over a third of promised funds having been delivered for projects signed over a six year period until 2021, analysis by an Australian think-tank has shown.
China is Southeast Asia's largest infrastructure financing partner, providing funding for a number of large-scale infrastructure projects launched under China's ambitious Belt and Road global infrastructure initiative.
But the analysis released by the Sydney-based Lowy Institute on Wednesday found just 35 percent of committed funding for Chinese development projects signed and implemented in the region between 2015 and 2021 had been spent, with many projects canceled, downsized, or otherwise deemed unlikely to proceed.
The think tank found the reasons for this gap include China's almost exclusive focus on financing ambitious "megaprojects" -- those costing $1 billion or more -- such as power plants and major transport infrastructure including ports and railways, which are especially prone to problems and delay.
Political instability in partner countries, weak stakeholder consultation, and a shift away from fossil fuels projects amid the global energy transition were also to blame, the analysis report said.
Examples include the East Coast Rail Link project in Malaysia, which faced suspensions or renegotiations with each change of government, and the new Phnom Penh airport in Cambodia, which was hampered by violent protests and judicial disputes due to a lack of consultation with local landowners.
However despite the shortfalls, China is still expected to far outspend other international development partners including Japan in the strategically significant region, according to the report.
