To help alleviate the temporary liquidity constraints caused by the decline of long-haul passenger transportation and deferred client payments against the backdrop of the COVID-19 outbreak, AIIB is extending financing to Russian Railways (RZD) in the local currency equivalent of USD300 million. RZD owns and operates Russia’s integrated national passenger and freight railway network and is the largest commercial employer in Russia with around 900,000 employees at the end of 2019. This AIIB loan will contribute to the company’s efforts to preserve jobs and the working conditions of employees and ensure continuous operations.
Covering approximately 85,500 kilometers of track, Russia’s railway system is the world’s third longest railway network, second largest railway in terms of freight turnover and fourth largest railway in terms of passenger turnover. In addition to transporting passengers across large distances, its rail routes link to busy seaports that service Asia and Europe, serving as a “land bridge” between them, thus contributing to Russia’s domestic and foreign trade.
However, as with all transportation companies, RZD faces the negative impacts of COVID-19. In particular, long-haul passenger rail operations in Russia have been severely affected; in some months, the decline in passenger turnover reached 70 percent.
The project aligns with AIIB’s commitment to support infrastructure clients in responding to the COVID-19 crisis through the Bank’s COVID-19 Crisis Recovery Facility (CRF). With such support, clients can successfully overcome temporary liquidity constraints and maintain critical long-term investments.
“With this project, AIIB contributes to the support for railway transportation services, which remain a socially significant and the most affordable means of transport for millions of citizens, and an efficient way to transport large quantities of goods and freight,” said AIIB Vice President, Investment Operations, Konstantin Limitovskiy. “AIIB’s commitment to sustainability has to go beyond just the infrastructure itself. It must also account for the people, both those who provide and those who depend on its services.”
This project is funded by the AIIB Crisis Recovery Facility, and is AIIB’s first approved nonsovereign CRF project in Russia.
The CRF provides up to USD13 billion of financing to both public and private-sector entities facing serious adverse impacts as a result of the pandemic. As of Oct. 15, 2020, AIIB’s Board of Directors has approved a total of 22 projects amounting to over USD6.645 billion to help 16 members navigate the challenges of these highly uncertain times.
Addressing the climate emergency and advancing the SDGs through circular economy
Accelerating the adoption of circular economy principles, policies and practices is essential if we are to make the progress on the Sustainable Development Goals and fully implement the Paris Agreement.
This was the key message from more 300 representatives of national governments, United Nations entities, intergovernmental and non-governmental organizations, the private sector and academia brought together by the United Nations Industrial Development Organization (UNIDO) in a series of regional meetings on the circular economy held virtually between 13 and 20 November 2020.
These regional meetings, convened for the African Group, the Asia-Pacific Group, the Eastern European Group, the Latin American and the Caribbean Group, and the Western European and Other States Group, focused on exchanging experiences and sharing knowledge, identifying benefits, challenges and barriers, and considering ways and means to enable the transition to a circular economy.
While addressing the African Group, Stephan Sicars, Managing Director of Environment and Energy at UNIDO, quoted one of the world’s most inspirational leaders and prominent change-makers, Nelson Mandela: “I dream of our vast deserts, of our forests, of all our great wildernesses. We must never forget that it is our duty to protect this environment.” Sicars stressed the urgency of these words and pledged the continued support of UNIDO to foster partnerships, conceive initiatives and mobilize stakeholders for action on the circular economy in developing countries.
Ornela Çuçi, Deputy Minister of Tourism and Environment, Albania,emphasized that “Nature is the biggest asset in Albania. We must preserve our environment to be able to build a strong and resilient economy. We are therefore working on legislation on the circular economy that will integrate this concept into our reality”.
Ilan Fluss, Deputy Head of the Economic Division of Israel’s Ministry of Foreign Affairs, said, “Cooperation between governments, the private sector and civil society is critical for promoting a circular economy. To close gaps between countries and societies, it is important to create partnerships, share best practices and exchange experiences.”
Noting that despite the opportunities, challenges remain, Claude Koutoua, President of the Environment, Quality, Hygiene, Security and Energy Committee, General Confederation of Enterprises, Côte d’Ivoire,said, “One of the main challenges is making technological innovations available, especially those that allow for carbon-free processes. We are in a world of competition and if we do not have a sufficiently attractive cost factor, it may happen that industries will not find the necessary enabling environment. What is more, we need support to make sure there is a political will to effectuate transformational changes”.
Van Keaheak, Director General for Industry at Cambodia’s Ministry of Industry, Mines and Energy,stressed “that stakeholders are very important. Stakeholders involved should be the government, United Nations agencies, NGOs, the private sector and consumers. They all should be aware of the importance of the circular economy to deal with the environmental impacts. The circular economy is an opportunity to green our society”.
Alex Saer, Director for Sectorial and Urban Environmental Affairs at Colombia’s Ministry of Environment and Sustainable Development, explained that “as a successful case, we have worked with UNIDO on eco-efficient industrial parks. We believe that this is a very important way to promote industrial symbiosis in the country, as industry is an essential part of a circular economy”.
The outcomes of the regional meetings will inform UNIDO-led global consultations on circular economy, scheduled for January-February 2021. The global consultations aim to develop a set of policy recommendations to advance the work of Member States and various stakeholders on the circular economy, thereby promoting inclusive and sustainable industrial development in the framework of the United Nations’ Decade for Action.
Indonesian President Addresses Global Business Leaders at the WEF Special Dialogue
Today, President Joko Widodo of Indonesia took part in a dialogue with global business leaders, hosted by Klaus Schwab, Founder and Executive Chairman of the World Economic Forum.
The dialogue focused on the need for deeper public-private cooperation – currently focused on helping manage the COVID-19 pandemic – as well as providing a boost to the country’s economic recovery. Indonesia is currently experiencing its first recession in 22 years, and like many nations, is in the midst of tackling the pandemic; the country surpassed half a million confirmed cases of the disease this week.
“I would like to express my appreciation to the World Economic Forum for hosting the Country Strategy Dialogue on Indonesia at such a pivotal time for our country and the world,” said President Joko Widodo. “The Government of Indonesia remains strongly committed to engaging in public-private partnerships that support the country’s path towards sustainable and resilient economic recovery.”
In his opening remarks, the president said that the enactment of the Omnibus Law will help improve Indonesia’s investment climate and legal certainty, adding that: “Significant support from the business community in its implementation is essential, as it will add value to the government’s efforts in handling the pandemic and supporting economic recovery in a balanced and synergetic manner.”
More than 50 global business leaders took part in an interactive virtual discussion, during which they listened and offered suggestions to the president and members of his cabinet, who laid out their plans for economic revival.
“Indonesia with its large population, is making impressive progress in fighting COVID-19, and at the same time is using this pandemic as a means to restructure, modernize and upgrade its economy,” said Klaus Schwab, Founder and Executive Chairman of the World Economic Forum.
The president emphasized measures his government would be taking to manage the spread of COVID-19. The focus is on providing treatment and ultimately vaccinations for the population, while also cutting red tape to fast-track needed investment aimed at restoring Indonesia’s growth and securing its competitiveness post-pandemic.
Several important cabinet members, including Erick Thohir, Minister of State-Owned Enterprises and Retno L. P. Marsudi, Minister of Foreign Affairs, and Luhut B. Pandjaitan, Coordinating Minister for Maritime Affairs and Investment, took part in the dialogue. They presented details of the planned establishment of the country’s multibillion dollar sovereign wealth funds, implementation of the Job Creation Laws and planned investment incentives, as well as prioritizing environmental sustainability in recovery efforts, to ensure the country’s leadership in the area of green growth.
Global chief executive officers responded by presenting their plans for further investment and offered suggestions for collaboration.
James Quincey, Chairman and Chief Executive Officer of The Coca-Cola Company said: “I appreciate the government’s efforts to encourage investment, maintain sustainability at the centre of their rebuilding efforts and clearly communicate their ambition to work together with different stakeholders to create new and innovative ways to foster growth.”
The Government of Indonesia and the World Economic Forum have agreed to continue the dialogue aimed at developing multistakeholder solutions in areas such as mainstreaming low-carbon investments, supporting Micro Small and Medium-sized Enterprises (MSME) through reskilling and upskilling, and building long-term resilience for the country’s travel and tourism sector.
Pakistan PM Khan Speaks with Global CEOs on Strategic Priorities in Post-Pandemic Era
The World Economic Forum today hosted a “Special Dialogue with Prime Minister Imran Khan” for its members and partners, chaired by Forum President Børge Brende. The session gave chief executives from across the world an opportunity to hear directly from the prime minister on the factors behind Pakistan’s resilience to the economic shocks of the pandemic and his country’s post-COVID-19 recovery strategy.
In the virtual session, Khan explained the policy priorities of the Government of Pakistan, including regional connectivity projects like the China-Pakistan Economic Corridor (CPEC), and progress on talks to improve trade flows between Afghanistan and Pakistan following his visit last week to the Afghan capital. Khan also responded to questions from chief executives on promoting a digital economy in Pakistan and improving the enabling environment for long-term investors.
“My aim is for Pakistan’s economy to emerge greener, fairer and stronger from the pandemic. It is crucial for us to work with the international business community and partners like the World Economic Forum to share the important reforms underway here and help global businesses participate in the emerging opportunities in Pakistan,” said Imran Khan, Prime Minister of Pakistan.
“Pakistan’s economy has shown remarkable resilience to the pandemic, placing it in a strong position to rebound quickly from the shock. The Forum convened this dialogue with Prime Minister Khan for global business leaders to discuss the country’s economic response in greater detail and to understand where they could contribute to Pakistan’s ambitious recovery strategy,” said Børge Brende, President, World Economic Forum.
More than 70 members and partners of the World Economic Forum from around the world participated in the virtual session.
International Conflicts from the View of Trade Expectations Theory
Does economic interdependence between great powers have a significant effect on the probability of war between them? This once seemingly...
Bye Diego … (Geopolitics of Sports)
The news of Diego Maradona’s death plunged the football world into grief and deprived football fans of the existence of...
Addressing the climate emergency and advancing the SDGs through circular economy
Accelerating the adoption of circular economy principles, policies and practices is essential if we are to make the progress on...
Libya: Lights and shadows of the peace process
After six days of intense closed-door talks between the 75 delegates of the various Libyan factions summoned to Tunis by...
European sanctions against Turkey are more likely than ever
Another scandal erupted in relations between Turkey and the EU – on November 22, the Turkish merchant vessel, Roseline A,...
ADB $300 Million Loan to Promote Macroeconomic Stability in Pakistan
The Asian Development Bank (ADB) has approved a $300 million policy-based loan to help promote macroeconomic stability in Pakistan by...
Iranian media and Nagorno-Karabakh Conflict
Freedom of the press and the Media are both considered the fundamental pillars of Democracy across the globe. However, some...
Defense3 days ago
Biden, Modi and the Malabar Exercise 2020
Middle East2 days ago
Netanyahu-Pompeo secret meeting with MBS: A clear message to Joe Biden and Iran
Defense2 days ago
On the Universality of the “Logic of Strategy” and Beyond
Middle East2 days ago
Iranian nuclear problem again: The storm clouds are gathering
Green Planet3 days ago
Climate Change – call for a united front
Reports3 days ago
Lithuania: COVID-19 crisis reinforces the need for reforms to drive growth and reduce inequality
Southeast Asia2 days ago
The 2020 Myanmar Election and China: Push and Pull factor in ‘Paukphaw’ friendship
Energy News3 days ago
$600 Million ADB Loan to Expand Energy Access in Eastern Indonesia