BRICS - Member Country Projects to Achieve Links to the World

BRICS – Member Country Projects to Achieve Links to the World

We continue our in-depth series into BRICS nations and profile their activities around the globe. In our earlier article entitled “BRICS – The World is Not Watching,” we discussed the lack of scrutiny into BRICS projects and activities from world leaders. Part 2 of our series, “BRICS – Stepping Stones to Global Domination,” focused on members’ financial plans, and our last installment, “BRICS – Member Nation Contributions,” looked at specific projects and the cost of those projects. In this, our latest article, we will take a closer look at the role China plays in the BRICS partnership.

By all indications, China takes the lead within the BRICS contingent.  China has a higher percentage of votes within the BRICS organization and, therefore, has a more prominent voice on which projects BRICS advances. What does this mean for China? Through BRICS participation, China has created an excellent opportunity for itself to expand strategic global trade routes and political influence worldwide.

Working through BRICS New Development Bank (NDB), BRICS nations identify six project categories for their countries: Clean Energy, Transportation, Social Infrastructure, Urban Infrastructure, Environmental Protection, and Water, Sanitation, and Flood control.

Over the last decade, China has quietly worked to create a global network of trade routes. These strategically placed routes crisscross across nations and reflect China’s long-term plans to lead the world in trade. As far back as the 1990s, several substantial banking institutions began looking beyond the United States for the next global leader; China is determined to be that leader – usurping America’s long-held spot.

Beginning with the BRICS agreement in 2006, China introduced the so-called One Belt One Road (OBOR) Plan. This new Silk Road Plan reflects China’s centuries-long history of global trade and their desire to, once again, be the world’s leader. There are reports that the Chinese are even looking at establishing a Polar trade route; a plan, which sources say, is seriously being considered and studied.

Along with trade and commerce, it’s understood by many world leaders, that China will also export their political ideology. As the Chinese spread their influence around the world, many see it as an opportunity for China to also influence other countries with their philosophy and cultural norms.

In addition to its influence, China stands to gain financially with the OBOR Plan. As China acquires partners and investors in other nations, it also increase the opportunity to earn more power and control should any of their partner’s default on investments. This positions the Chinese to gain leverage over other nations, which could become heavily indebted to China.

Let’s take a look into BRICS approved projects

BRICS – NDB Approved Projects
CountrySectorProjectTotal Cost
BrazilClean EnergyFinancing of Renewable Energy Projects and Associated TransmissionUSD 600 million
BrazilTransportationMaranhão Road Corridor – South North IntegrationUSD 190 million
BrazilSocial InfrastructureDevelop Sorocaba – Sorocaba Mobility and Urban Development ProjectUSD 50 million
BrazilSocial InfrastuctureEnvironmental Protection ProjectUSD 340 million
BrazilSocial InfrastucturePará Sustainable Municipalities ProjectUSD 125 million
GDP USD $2,053 billion – Brazillian Loans – USD 1.305 million (.006% of GDP)
RussiaClean EnergyTwo Loans to EDB and IIB for Nord-HydroUSD 161.9 million
RussiaTransportationUfa Eastern Exit ProjectUSD 700.8 million
RussiaSocial InfrastructureJudicial System Support ProjectUSD 601 million
RussiaUrban InfrastructureSmall Historic Cities Development ProjectUSD 275 million
RussiaEnvironmental ProtectionSustainable Infrastructure In Relation To “ZapSibNefteKhim” ProjectUSD 9,424 million
RussiaWater, Sanitation and Flood ProtectionDevelopment of Water Supply and Sanitation Systems ProjectUSD 400 million
GDP USD $1.578 billion – Russian Loans – USD 11.6 billion (.007% of GDP)
IndiaClean EnergyRajasthan Water Sector Restructuring ProjectUSD 495 million
IndiaClean EnergyMadhya Pradesh Major District Roads ProjectUSD 500 million
IndiaClean EnergyCanara Renewable Energy Financing SchemeUSD 500 million
IndiaTransportation Andhra Pradesh Road Sector ProjectUSD 924 million
IndiaTransportation Assam Bridge ProjectUSD 377 million
IndiaTransportationMumbai Metro Rail Project Assam Bridge ProjectUSD 2,500 million
IndiaTransportationMadhya Pradesh Major District Roads II ProjectUSD 500 million
IndiaTransportationMadhya Pradesh Bridges ProjectUSD 250 million
IndiaTransportationMumbai Metro Rail ProjectUSD 2,500 million
IndiaTransportationMadhya Pradesh Major District Roads II ProjectUSD 500 million
IndiaTransportationMadhya Pradesh Bridges ProjectUSD 250 million
IndiaTransportationBihar Rural Roads ProjectUSD 500 million
IndiaSocial InfrastructureMadhya Pradesh Multi Village Water Supply ProjectUSD 670 million
GDP USD $2,651 billion – India Loans – USD 1,170 million (.004% of GDP)
ChinaClean EnergyGuangxi Chongzuo Urban Water System Ecological Restoration ProjectUSD 522.9 million
ChinaClean EnergyGuangdong Yudean Yangjiang Shapa Offshore Wind Power Project(USD 840 million)
ChinaClean EnergyJiangxi Natural Gas Transmission System Development ProjectUSD 1,328 million
ChinaClean EnergyHunan Ecological Development Project(USD 433 million)
ChinaClean EnergyPutian Pinghai Bay Offshore Wind Power Project(USD 700 million)
ChinaClean EnergyLingang Distributed Solar Power Project (USD 700 million)
ChinaTransportationLanzhou New Area Regional Hub Multimodal Logistics and Transport Infrastructure Demonstration Project(USD 560 million)
ChinaTransportationNingxia Yinchuan Integrated Green Transport Development Project(USD 420 million)
ChinaTransportationHohhot New Airport Project (USD 3,071 million)
ChinaTranspotationLuoyang Metro ProjectUSD 2,775 million
ChinaSocial InfrastructureChongqing Small Cities Sustainable Development ProjectUSD 568.5 million
ChinaSocial InfrastructureJiangxi Industrial Low Carbon Restructuring and Green Development Pilot ProjectN/A (As this is a Project Financing Facility)
ChinaWater, Sanitation and Flood ControlZhejiang Green Urban Project – Shengzhou Urban and Rural Integrated Water Supply and Sanitation Project (Phase II) (USD  261 million)
GDP USD 12,237 billion – Chinese Loans – USD 1,170 million (.004% of GDP)
South AfricaClean EnergyRenewable Energy Sector Development ProjectUSD 780 million
South AfricaClean EnergyGreenhouse Gas Emissions Reduction and Energy Sector Development ProjectUSD 600 million
South AfricaClean EnergyProject Finance Facility for EskomUSD 225 million
South AfricaTransportationDurban Container Terminal Berth Reconstruction ProjectUSD 643 million
South AfricaSocial InfrastructureLesotho Highlands Water Project Phase IIUSD 2,106 million
South AfricaEnvironmental ProtectionEnvironmental Protection Project For Medupi Thermal Power PlantUSD 2,750 million
GDP USD 348 billion – South Africa Loans – USD 1,170 million (.005% of GDP)

Click links in the above table to see an in-depth summary of projects.

As we review the funding plans of each nation, and their expenditures for Infrastructure projects, we begin to understand the enormity of China’s role in BRICS. While each BRICS nation secures funding through their own national banks, should any nation default on their loans, China stands to gain. As the majority stakeholder, China is poised to scoop up control of BRICS projects, should a member nation fail to meet its financial obligations to the New Development Bank. For example, should Brazil fail to pay for its new 142 mile highway from interior Brazil to coastal ports, China could step in and buy the loan, thereby becoming owner of the Brazilian highway. The enormity of China’s potential global control and influence could drastically increase.

In the next addition of our BRICS series, we will take a closer look at China’s potential for Global economic dominance.

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