China, Albania and a win-win deal

TIRANA TIMES EDITORIAL
China is stepping in to provide a new source of financing and investment for several countries in a region, including Albania, and the move is positive for all parties involved — the countries themselves, China — and the European Union — which all Western Balkans countries hope to join at some point in the future.
China brought together 16 government leaders from Southeastern and Central Europe this week as part of a trend to increase its economic presence and influence in the region by investing in key infrastructure projects. There is apparently $10 billion available in financing for the region, and even if Albania gets a small portion, it will be a welcomed source of financing for the current cash-strapped government which has no money allocated for new infrastructure projects.
It appears the first project to get Chinese funding — and likely direct implementation — will be a major highway over the mountains of eastern Albania — known locally as Arber Road. When finished, it will be the second most important project of its kind after the Nation’s Highway that now connects Albania with Kosovo. It cuts Tirana’s distance to Skopje by 100 kilometers and opens up Durres Port to entirely new markets that go as far away as Sofia, a group of lobbyists for the road from the Dibra region, told the Tirana Times editorial board. It will also revitalize that mineral- and agriculture-rich region, which is currently one of Albania’s most isolated and poorest areas.
Every government has agreed that the Arber Road needed to be built, but no one has been able to find the money to do so — about $250 million — until the Chinese stepped in, negotiating first with the previous government and sealing the deal with the current one after some more negotiations. The full agreement has not been reached yet, but the money part — what the state-owned Chinese Exim Bank will provide for the project’s development – seems to have been agreed upon. The rest of the details remain unclear.
For its small size and geographic distance from China, Albania has a strong fan base in China with people over 40, those familiar with China say, because then-communist Albania had a very strong relationship with Beijing after breaking ties with Soviet Union.
It’s a fan base Albania has not capitalized on enough until now, but things are likely to change in the future if the proposed project go ahead.
For China the benefits are also clear. It gets to invest its cash reserves in projects that provide a financial return, make it easier to trade with the wider region and, of course, it is likely to get more positive political good will in the future.
China is also a safe bet for the region because the geographical distance and lack of any direct cultural or religious ties eliminate many of the risks that other major potential investors like Russia brings to the equation.
Some Europeans have expressed unease with this Chinese economic incursion into the Balkans, but ultimately the investments in question are a win for the EU as well.
In addition to increased trade with the Chinese market, the roads, railways and ports China is helping to build are ultimately better connecting the region with the rest of Europe and beyond — something the EU ultimately promotes and benefits from.
Furthermore, unlike other powerful countries to the East with interests in the region, China is on the record as to where it stands in terms of the Balkans and the EU.
“China supports the European Union, EU integration processes and a strong euro,” the Chinese premier said at the latest regional leaders’ summit held in Belgrade.