Chinese investors to pump US$200m into Grenada

Chinese investors have promised to plough US$200 million into Grenada's struggling economy after wrapping up a one-week visit to the island.

The investors have also announced a follow-up trip in August to present specific project proposals.

They have signed a number of memoranda of understandings (MOUs) after a busy series of bilateral meeting with top government and private-sector officials.

"Based on the interest expressed by the visiting Chinese delegation, we were able to match that by facilitating bilateral meetings," said Chris DeRiggs, director of private sector development in the Ministry of Finance.

"So these meetings have happened and they have been very fruitful and, in some instances, they have gone to the extent of signing MOUs."

The investors from Beijing are targeting two major hotel projects, including a Four Seasons, which have been affected as a result of the global economic meltdown.

Government has been seeking US$100 million in private sector funding to build the hotel after the International Monetary Fund cautioned against securing a state loan.

Ongoing efforts by British developers to secure funding for the Four Seasons project have failed in light of a tight capital market.

The Chinese have expressed an interest in various other sectors, including agriculture, fisheries, mining, energy and tourism.

"Right now, we are trying to sort out some legal issues and regulations with government," said Fu Zai Song, head of the 19-member Chinese delegation.

The investors represent presidents and chair of various companies whose finances are managed by Touchstone Capital Partners, a Chinese financial company.

- CMC