Archive for the ‘Investment’ Category

Reuters: China scrambles to build homes for quake survivors

Saturday, January 3rd, 2009

Reported on Reuters By Ian Ransom

BEIJING, Nov 12 (Reuters) – Six months after China’s Sichuan earthquake, local authorities are scrambling to build housing for millions made homeless as winter approaches.

In the the hard-hit city of Dujiangyan, scores of police blocked grieving parents from mourning their dead children at the primary school where they were entombed when the devastating quake struck on May 12.
“Today is a commemorative day, many families wanted to come to this school to burn paper for their children,” a woman surnamed Yan told Reuters by telephone.

Yan, who stood outside Xinjian primary school, where parents believe more than 200 children died, said police were preventing the parents from burning the joss paper Chinese traditionally use to commemorate their dead.
“Now there are many police here. They do not want us to speak out of step,” said Yan, who lost a child in the rubble.

The Sichuan quake killed more than 80,000 people. Many were children who had been napping or at their desks in poorly built schools that crumbled while other buildings nearby stood firm.

China vowed to punish those responsible after aggrieved parents blamed their children’s deaths on substandard construction stemming from corruption and greed.

No prosecutions have been reported and parents have been pressured into dropping their complaints.
Local authorities in Dujiangyan have tired of Yan’s complaints and detained her and her husband for weeks at a time.

“They never give any reason, just to say that they will not let us petition or file a lawsuit. They also said: You are just blades of grass, we can tread on you at any time.”

MAMMOTH PACKAGE, SMALL COMFORT

China last week announced a mammoth 1 trillion yuan ($146.4 billion) package to rebuild ravaged infrastructure and industry in 51 of the hardest-hit counties, and has pledged to provide basic health care and housing for the millions of people made homeless before winter sets in.

Most of the survivors continue to live in temporary housing.

The programme would be aimed at making “basic living standards and economic development match or exceed pre-quake levels,” within three years, local media said, citing the country’s top planning agency.

The money is unlikely to comfort the parents.

“The government has paid us compensation of a few tens of thousands of yuan per child,” said Li Ou, whose daughter died in the school on her eighth birthday.

“In reality, 500,000 or a million yuan can’t bring back our children.”

Li said his daughter’s building had crumbled to the ground as some of the school’s other buildings remained intact.

“We found out that this building was designated unsafe in ’99, and needed to be fixed. It had not been by the time the quake hit,” Li said.

Parents remain suspicious of the media, who promised reports that never made the news or the newspapers.
After initially tolerating reporters in the aftermath of the the quake, authorities slammed the door shut on local media coverage weeks after, as the image of angry parents threatened to overshadow the official story of heroic rescue workers rushing to save victims.

The children that died at Jianxin were the sons and daughters of poor migrant workers, said Li.

“These high officials live in luxury and can’t understand our feelings. I believe Premier Wen and the national government is good, it is only the local government that has problems,” he said.

Red Cross updated appeal: Sichuan Earthquake Revised Emergency and Recovery Appeal No. MDRCN003

Saturday, January 3rd, 2009

Red Cross updated appeal (re-post from original at ReliefWeb)

China: Sichuan Earthquake Revised Emergency and Recovery Appeal No. MDRCN003

This Revised Emergency and Recovery Appeal seeks CHF 167,102,368 (USD 137.7 million or EUR 110 million) in cash, kind, or services to support the Red Cross Society of China to assist an estimated 200,000 families (up to 1,000,000 people) affected by the earthquake for 31 months.

This revised appeal will address the specific recovery needs based on technical assessments that have been conducted by the Red Cross Society of China with support from the International Federation in the earthquake affected areas. The appeal covers the provision of life-saving relief and substantial recovery and reconstruction programmes to address widespread humanitarian needs in Sichuan, Gansu and Shaanxi provinces.

This operation is expected to be implemented over 31 months, and will therefore be completed in December 2010; a final report will be made available by March 2011, three months following the end of the operation.

Appeal history:

  • An emergency appeal was launched on 30 May 2008 for CHF 96.7 million (USD 92.7 million or EUR 59.5 million) in response to the huge humanitarian needs and in recognition of the unique position of the Red Cross Society of China (RCSC) supported by Red Cross Red Crescent partners to deliver high quality disaster response and recovery programmes.
  • A preliminary emergency appeal of CHF 20.1 million (USD 19.3 million and EUR 12.4 million) was issued on 15 May 2008 to support the RCSC to assist around 100,000 people affected by the earthquake for 12 months.
  • CHF 250,000 (USD 240,223 or EUR 155,160) was allocated from the International Federation’s Disaster Relief Emergency Fund (DREF) on 12 May 2008, to support the RCSC to immediately start assessments of the affected areas and distribute relief items.

This Revised Emergency and Recovery Appeal reflects the International Federation of Red Cross and Red Crescent Societies’ continued commitment towards assisting the Red Cross Society of China (RCSC) in meeting the huge needs of communities affected by the 12 May Sichuan earthquake. It is being revised to enable the RCSC and its partners to focus efforts where needs have been identified based on technical assessments in relief, shelter, water and sanitation, psychosocial support and health services, and livelihoods. It will also enable the RCSC to strengthen its organizational capacity for relief, recovery/reconstruction and disaster risk reduction in the disaster-affected areas.

The plans of action were developed after technical assessments were conducted and are based on realistic expectations of the ability of the RCSC to scale-up the size and complexity of its programming. The processes and activities implemented under this appeal will include the provision of technical assistance to the RCSC and the joint implementation of pilot programmes that RCSC may then consider scaling up with the substantial resources raised in response to their national fundraising campaign. It is clear that the needs in the region are enormous. The only limit of the International Federation’s support will be the funding received and the joint capacity of the RCSC and International Federation to implement the planned activities. There are still limitations on the number of international delegates based in Sichuan, although it has loosened recently.

At the request of the RCSC leadership, the International Federation will continue to play a key role in the coordination of Red Cross Red Crescent Movement-supported activities. An office has been established in Chengdu with technical delegates to cover the major sectors. The recruitment of construction delegates are being planned and they will be in place shortly. The East Asia regional office in Beijing supports the Chengdu office and the RCSC headquarters with mainly strategic planning and communications with partners, and is further supported by the Asia Pacific zone office in Kuala Lumpur.

Many partner national societies have already made contributions to the appeal: American Red Cross, Australian Red Cross/Australian government, Belgian Red Cross/ Belgian government, British Red Cross, Bulgarian Red Cross, Canadian Red Cross/Canadian government, Cook Islands Red Cross, Croatian Red Cross, Czech Red Cross, Danish Red Cross/Danish government, Estonian Red Cross, Finnish Red Cross/Finnish government, German Red Cross, Icelandic Red Cross, Irish Red Cross/ Irish government, Japanese Red Cross/Japanese government, Lithuanian Red Cross, Malaysian Red Crescent, Mauritius Red Crescent, Monaco Red Cross, Netherlands Red Cross/Netherlands government, New Zealand Red Cross/New Zealand government, Norwegian Red Cross, Qatar Red Crescent, Singapore Red Cross, Spanish Red Cross, Swedish Red Cross, Sri Lanka Red Cross, and United Arab Emirates Red Crescent Society, as well as contributions from American, Greek, Italian, Luxembourg, Slovenian and South Africa governments, OPEC Fund for International Development, the Stavros Niarchos Foundation and many corporate partners.

The Red Cross Society of China has also received many bi-lateral contributions of funding, including the following: Cambodian Red Cross, French Red Cross, German Red Cross, Republic of Korea Red Cross, Norwegian Red Cross, Pakistan Red Crescent, Spanish Red Cross, Swiss Red Cross, Thai Red Cross, Turkish Red Crescent and Viet Nam Red Cross. These contributions have been added to the various substantial resources raised domestically by the Red Cross Society of China in its national fundraising appeal.
To date, the initial appeal for CHF 96.7 million is 87% covered, with cash and in-kind contributions totalling CHF 84.4 million received to date. Total expenditure from May until the end of October 2008 is CHF 46.5 million.

The International Federation, on behalf of the Red Cross Society of China, would like to thank all partners for their very quick and generous response to this appeal.

Downloadable files:

Financial Times: China to fund just 20% of quake rebuild

Saturday, January 3rd, 2009

Report on post-quake rebuilding from the UK’s Financial Times:

The Chinese government will fund just a fifth of the estimated RMB 3,000 billion cost of reconstruction and development in earthquake-affected Sichuan, leaving businesses and state-owned banks to pay for the rest, provincial officials said on Friday. Even as economic officials issue warnings that China’s economy is cooling much faster than expected as a result of the global crisis, Sichuan officials said they were optimistic that state-owned companies and the private sector would invest in the disaster zone.

“The government’s investment will encourage all kinds of investment from society to help us rebuild Sichuan after the quake,” said Wei Hong, executive vice-governor of Sichuan Province, at a press conference. “We will seek loans from domestic banks, financing from capital markets and donations from the public to make up the rest of the needed investment.”

The government appears to be ordering state-owned banks to shoulder much of the burden of a giant fiscal stimulus package announced last week at a time when they face slowing profits and rising bad loans. China’s benchmark stock index has fallen by nearly 70 per cent from the peak it reached last October and regulators have effectively suspended approvals for new listings.

Gov.cn: Sichuan to get 3 trillion yuan by 2010

Saturday, January 3rd, 2009

From the Chinese Government’s Official web portal:

Authorities in quake-hit Sichuan Province in southwest China plan to invest at least 3 trillion yuan (441 billion U.S. dollars) for reconstruction by 2010, executive vice provincial governor Wei Hong said on Friday.

About 1.67 trillion yuan is needed to rebuild the 139 counties hit by the 8.0-magnitude quake in May, with investment in other development projects to reach almost 700 billion yuan each year between 2008-2010, Wei told a press conference in Beijing.

Under those estimates, spending could approach 3.7 trillion yuan.

Wei said that “the central and provincial governments can only provide 800 billion yuan, or about a fifth of the total investment needed, so we will raise funds from banks, the capital market and donations” to get the rest.

He said reconstruction investment will be 790 billion yuan this year and 1.2 trillion yuan next year.

As of the end of October, the central government had allocated almost 34.5 billion yuan for post-disaster reconstruction and five major banks had agreed to lend 64.73 billion yuan, Wei told reporters.

In addition, Sichuan had reached 1,152 reconstruction agreements with other provinces as well as the Hong Kong and Macao special administrative regions, with a planned investment totaling27 billion yuan, he added.

The 8.0-magnitude quake centered in Sichuan’s Wenchuan County left more than 69,000 people dead, 374,000 injured, 18,000 missing and millions homeless.

More than 31,000 aftershocks have been reported since, with the strongest measuring 6.4 on the Richter scale.

In terms of the intensity and scope of destruction, the May 12 quake is believed to have surpassed the 7.8-magnitude quake in 1976 in Tangshan, northern Hebei Province, which claimed more than 240,000 lives.

Beijing municipality to invest 7 billion yuan in Sichuan

Saturday, January 3rd, 2009

Beijing is expected to invest at least 7 billion yuan (1.02 billion U.S. dollars) in the quake-hit Sichuan Province in the coming two years, according to Mayor Guo Jinlong on October 8, Xinhua reported.

Beijing municipality has been tasked with Shifang. The money will be used on construction, intellectual support and industry cooperation. The focus this year is 39 programs, including construction of residential buildings, schools and hospitals, Guo said. In total, 86 energy-saving houses provided by Beijing had been delivered to Shifang Municipal Welfare Centre. In addition, the city had provided 11,696 jobs to Shifang City residents and received 1,579 students from one of the worst-hit areas in the May 12 quake. The conference proposed 685 post-quake programs with a total investment of 601.7 billion yuan. These included industries of hi-tech, resources, equipment manufacturing, agriculture, service trade, culture, tourism and infrastructure. Beijing and Sichuan companies signed 54 agreements here on Wednesday involving a total investment of 66.6 billion yuan.

Canada assisting with wood-frame buildings

Saturday, January 3rd, 2009

From the China Daily via the China National Committe on Ageing:

Canada and British Columbia (BC) province are working with the Chinese government and partners in the Wenchuan Earthquake Reconstruction Project constructing quake-proof wood frame buildings.