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China-financed namibia northern manufacture leather failure

Aug 16,2019

Content:
 
China is very good with namibia, the traditional friendship since diplomatic relations between the two countries, all areas of cooperation and development, especially in the economic field, smooth numerous examples of successful cooperation. But some of them are failing, the Chinese government preferential interest loans rebuilding namibia is an example, northern manufacture leather project of various reasons.
 
The northern manufacture leather mess up
 
North north of namibia WengDan in manufacture leather city, this project in melon in March 2000, by formally signed the parties concerned, and then start construction, built in April 2002. This project is the export-import bank of China supply to 50 million yuan RMB, the government provides preferential interest loans, again by a Chinese company with contracting way responsible for the civil engineering construction, workshop provides machine equipment, transport, installation, debugging and najaf on square personnel technical training. Chinese companies, timely accomplish these tasks to this project after nadia, then handed over by party, independent operation, independent management party.
 
This factory by Chinese companies contracting construction on completion, independent operation, party by independent management, this requirement is brought out by Leonard square, China contracting company responded positively. The turn-key project got when Chinese embassy in namibia embassy support and domestic department approval. This result, as party getting the expressed satisfaction with the contracted project, the Chinese company is happy to help its contracted ten, the success of the relevant leaders gratitude need not say oneself.
 
It was done, but it is refreshing but since then the seeds of plants the "trouble." This project since 2002 April 26 over to namibia northern leather Co., LTD independent operation, namely after plunged. In 2002, I know the situation in early August to the factory, see factory mismanagement, staffs loss, damage, the serious shortage of machine start, the unmarketable products at half paralyzed, a depression scene.
 
Some projects in contracting way not built
 
The north in najaf party handed manufacture leather soon after mess up, the reason is various, some disadvantageous also said. I just want to note: namely take make contracting, make turn-key project such a rebuilding cooperation method is a relationship that an important reason to succeed.
 
With the government in engineering contracting preferential interest loans the way, aid some include African countries in the development of national construction, not all some project and feasible. Feasible or not, should see specific to circumstances. For some unfavorable use contracting with the way the state or project cooperation, we should not take the same approach.
 
I to namibia before work in lesotho former ambassador to China. At the time, the same home Chinese company is using the government in lesotho preferential interest loans make rebuilding, is also to be contracted to contracted the way top lesotho, loan amount is 50 million yuan RMB. JingShangChu comrades at the embassy agree. Main reason is: China in lesotho national conference center of lesotho involve rebuilding project has completed two countries, from the continuous development of friendly relations and cooperation of lesotho, I consider the economic aid projects DuanDang, rebuilding projects not better than no strong. And now we have existing preferential interest loans funds, also have tops plant project, why not?
 
My opinion and they differ. I don't think don't make new rebuilding project, but unfavorable to turnkey project contracting way, otherwise mess is probably heightened. While they urged me to say: "this needn't worry, in case the trouble, we will happen in these early, has problems is the lesotho who later to deal with." I am more don't agree with their opinions. I say: "not to his momentary 'achievements', and bring trouble to the afterwards, especially to the recipient to bring long-term economic losses." Others speak no new reasons, but will I this "minority" obey them that "most" opinion. My observation: "' most 'opinion is not correct, certainly can't support. Embassy executes is curator of the responsibility system, you and I disagree on work, not I happened to obey the curator is your opinion, but you must obey my opinion. If my decision was wrong, I alone bear full responsibility."
 
Finally, the embassy, said a report to the domestic like the company agreed to, in lesotho, and with its long-term cooperation with the factory, mainly management, or blame, leroy party to support the embassy will; If the company adhere to make project contracting, made key, then after take money to leave the factory is not entirely no matter, embassy support.
 
Mistakes, the teacher of posterity
 
My main concern is: lesotho most state-owned enterprise due to bad management and poor workers technology level and production quality higher reason, all serious deficit, unsustainable, are vigorously carry out the privatisation. If the top by Chinese companies built into lai party after contracting independently deals, independent management, can't escape the misfortune, it will lead to new add a money-losing enterprises riley. The Chinese government then implement preferential interest loans this new aid way, basically is in order to raise some money to help Africa and other developing countries to develop economy, to bring economic benefits recipient, and in the recipient based on economic gains to Chinese debt servicing, thus promoting the economic cooperation and promote the development of bilateral relationship is continuously. And the tops of such turnkey project since can't succeed, how can you make?
 
On the other hand, government preferential interest loans is different from the government, grant aid is also different from the future could get derate government an interest-free loan. It is the export-import bank of China in domestic funds, again with low-interest preferential loans to foreign import and export bank for preferential policies to bring interest by Chinese government subsidies loss; Foreign loans secured by the government, loans to the principal and interest have to be returned to China the creditors, cannot reductions. After completion of the project if Chinese contractors, which took ChengBaoKuan leave the losses, the top, les square is not closed get from my aid, at the same time weak economic benefits to Chinese debt servicing, it not only against the government has a preferential interest loans's original intention, still can make China the interest of creditor suffer a loss, even to the relations between the two countries bring negative effect. In view of the above situation, and considering the company want to make contracting turn-key project, the embassy is not approved the company suggestion of domestic demand.
 
Embassy of the return of opinion gained recognition. The company saw contracting hopeless, he never spoke to the embassy. Later, when I return home from reporting on activities at care, moftec, the central a major learned department leaders have in April 1998 19 in the plant project about lesotho tops on a document made the following instructions: "by our management, otherwise the loan is not. African countries mistakes." I return after the central library main leaders of instruction to the embassy did convey, JingShangChu comrade finally admitted that their opinions are wrong.
 
Back in weakness, unsustainable
 
Back up north manufacture leather problem of namibia. In July 2000, I transferred to namibia as ambassador. Just as I was got sent before the aforementioned company with a gift from a thousand kilometers south of the outside to Beijing, hope I got to support the company after the northern manufacture leather contracted. I to bearer said: "you are welcome to talk about work, but you should give gifts is not good, so advise you about the gifts away or first, let's say it." When she put her gift back, I said to her: "namibia northern manufacture leather and lesotho tops factory these two projects, are using government preferential interest loans, the recipient countries in southern Africa, amount is 50 million yuan RMB, the Chinese cooperation unit is your company, cooperation method are make project contracting. These two projects are actually the same. Have different, one is in lesotho, one is in namibia; production materials one is sheep hair, a a cow body skin. Embassy and domestic department of the central main leader until your firm want to contracting lesotho tops factory engineering opinion, most propbably you already know, I don't need to say more."
 
Honestly, if I was the company's old total, I'm afraid I also want to make the contract. Because this accord with the interests of the company, from company point, do not only understandable, still should praise. But if the company manager and I have jobs, they have to consider not only the interests of the company, consider the interests of investors, the more must consider how to help namibia such developing countries benefit from cooperation, and how to through this cooperation further promote relations between the two countries in the development of najaf. So, frankly, if I had to manufacture leather office in namibia, if I have a say project as treat lesotho tops plant project put forward to domestic, as contracted opinions get disapprove.
 
I also told the people: "change company now you don't worry about I'll put you up to contracting thing, because in my afield already agreed before the embassy, domestic departments have contracted project approval, and has commenced, born meters have to cook mature rice, I want to oppose has also impossible, therefore I can only support for your company as the project got better. Therefore, I make three hope or requirement: one is practically improve civil engineering, ensure plant construction conform to the standards and contract requirements; 2 it is sold to manufacture leather machinery and equipment quality to have guaranteed, should never be used equipment domestic eliminated down; 3 it is to want to send sucks technical backbone serious training manufacture leather local technical personnel and workers, that they be mastered production and maintenance, repair technology. So, strive to produce high quality, competitive products, domestic and international market, make scored virtuous development business on the track, thus make fong and your company both benefit and relations between the two countries, so to get further strengthen the favorable results."
 
In line with every effort to help the company does well the desire I project manufacture leather to namibia, and embassy after got JingShangChu together, help the company solved a series of internal and external encounter problems, and to manufacture leather scene attended the project on both sides of the handover ceremony held on this cooperation projects to support. After the project over to restore the flagging bogged down gradually manufacture leather, and I do domestic work actively to help solve the shortage of manufacture leather, yuan (equivalent to 7 million RMB 700 million yuan RMB) liquidity problems.
 
In addition, I also proposed to domestic technical cooperation both by the suggestion that the company sent contingent of technical personnel and equipment maintenance staff to the factory work, participate in factory management, help the normal production. The company said it was prepared to consider, but on condition that the Chinese a production technical personnel, a equipment maintenance personnel and a translator of monthly salary of $8,000 to pay by the manufacturer. In view of Leonard square factory was going to collapse, which has the ability to undertake the $8,000 of monthly salary, relevant technical cooperation proposal has also had to blow up. So, the factory appeared article described the beginning scene.
 
Preferential loans project could make the contract
 
I worked in the north China company convened the site manufacture leather once the relevant personnel open forum, please them about the specific difficulties and problems and possible solutions. They accuse says, the difficulties and problems mainly has: one is the raw material quality is poor, directly affects the quality of products. Reason is the manufacture leather, namibia white private control of namibia, even the South African cowhide raw material supply market, namibia northern manufacture leather can't buy with machines by abattoir from farms circle on the cattle stripped off after disinfection, corrosion, with good from a single farmers cowhide, had to hand acquisitions cowhide. The peasant keeps in the wild oxen for NiuYing bites, old in a tree loiter, were damaged, plus cortical farmers of backward technology, artificial slaughter fresh cowhide and no effective disinfection measures, by nature airing, often decay, bred worms, not only further damaged cowhide, also reduced the cowhide flexibility. 2 it is the factory's lack of technical strength, workers, technical level low degree of cultural difference, a poorly operation, maintenance advanced machinery and equipment, machine easy attaint, damage and will not affect the normal maintenance, production and product quality. Three is the factory management level is not high, lack of really understand management, good management talents, especially leading talents. Four is the product sales market, coupled with the limited product quality is not high, lacking the market competitiveness, difficult to open up an outlet.
 
They had done for construction the feasibility study, the difficulties and problems is they already see and expected. Then I ask them, since early know the factory will face difficulties, meet a problem, why not, but it is built up? They answer must also is direct: if you want to them and Leonard square joint ventures or cooperative production, they won't dry, they can not bear the risk. But make contracting is quite different. Their mission, according to the contract will complete the complete contract fully good project handed over to each other, it is not difficult. In view of government funding has established favorable interest loans guarantee they will post project handover to charge according to the contract, party bond after, this also is no problem. As for handover on how after business, how to manage party, profit or loss is, it is not their things.
 
How to solve the difficulties and problems in the factory, they suggest that might as well to do two upstream enterprise and a downstream enterprises. The so-called upstream enterprise, is to build a modern cattle and a modern slaughterhouses, solve the cowhide raw material quality northern manufacture leather is not high. The so-called downstream enterprise, is to build a PiXieChang. The north of competitive production manufacture leather directly to the good skin can be used to market, general leather is used to processing leather shoes, again with leather products to market. Finally they really hope that the Chinese government give, square some preferential interest loans to help the project on the construction, and the party still by they make the contract. Also wish me the ambassador in this respect do more convince domestic work to help namibia dilemma, took to the healthy manufacture leather development road.
 
Listen to their this a great deal of talk, what else can I say? Just think, as long as my heart in the Chinese embassy in namibia embassy job, I wouldn't agree to any company with the government preferential interest loans in namibia make turnkey project contracting.
 
I in June 2003 departure after returning home, still occasionally managed to learn about the plant's position is better, but every time get the news disappointed me. Although efforts to try to najaf square also plant, but eventually because of depression-era cannot solve above-mentioned Chinese companies to say those difficulties and problems, reportedly, the factory had collapsed.
 
Web posted ZhuanGao please indicate the source "China leather nets"

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