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Myasnikovich urges Chinese company to build one more plant in Homyel region

Belarusian Prime Minister Mikhail Myasnikovich on Monday called on a Chinese company to build one more plant in Svetlahorsk, Homyel region, BelaPAN said.

Speaking at a meeting with Ren Hongbin, chairman of the board of China National Machinery Industry Corporation (Sinomach), on the first day of a Belarusian delegation's visit to Beijing, Mr. Myasnikovich suggested that apart from building a bleached pulp plant the Chinese company should also consider building a viscose pulp plant, said the government's news agency BelTA.

Belarus would borrow from China to secure funding for the project, said Mr. Myasnikovich. Its cost is estimated at $35 million.

Mr. Myasnikovich reportedly asked the Chinese company to complete the bleached pulp plant according to schedule, warning that in the event of a construction delay Belarus could have difficulty repaying a loan taken from China to finance the $800-million project. The plant is scheduled to start operation in late 2015.

The prime minister urged Sinomach to continue building new industrial facilities in Belarus, in particular power and woodworking plants.

Mr. Myasnikovich defended Belarus' practice of paying for the construction of plants by Sinomach with China's loans. "You bear no risks associated with the borrower's solvency," he was quoted as saying. He described the scheme as a "huge advantage that the Belarusian government has created for securing favorable conditions for the operation of Chinese companies compared with the business risks that the Asian partner is facing while working in other continents."