Infrastructure Deals Worked Out on Sidelines of APEC Summit

The real news at the recent Asia-Pacific Economic Cooperation summit was on the sidelines of the conference, in bilateral infrastructure and related deals between regional countries and China and Russia. For example:

* China-Indonesia: The Indonesian government reported that Chinese President Hu Jintao and Indonesian President Susilo Bambang Yudhoyono had agreed in their private meeting on Nov. 13 that China would continue to participate in building the infrastructure sector in Indonesia and to invest in energy projects. The Jakarta Post reports that the two discussed the possibility that China may help build a bridge between Java and Sumatra, across the Sunda Strait. They note that while Western investors are staying away, China has already invested in the Suramadu Bridge connecting Java with Madura Island, and in a 10,000-megawatt power station.

* Vietnamese President Nguyen Minh Triet, on the sidelines of the meeting, held a reception for Siemens CEO Peter Loscher, where he discussed a project to build 400 kilometers of urban rail for Ho Chi Minh City. Siemens is already involved in the first phase of this project. Loscher said he expected the project to begin on time now, that the German government and parliament support it.

Triet also had a bilateral meeting with Russian President Dmitry Medvedev, where the two not only agreed to further bilateral ties, but Triet said Vietnam would do its utmost to promote the organization of a high-level Russia-ASEAN meeting in Hanoi in 2010 when it assumes the ASEAN presidency.

* Prior to the meeting, Chinese President Hu Jintao was in Kuala Lumpur, Malaysia, where he signed several deals. Among technical agreements on banking and education, a Chinese loan agreement was signed for the construction of a bridge in Penag State. More interesting was the awarding to a Chinese firm for a $2.2 billion railway project in Southern Johor state. The double-track project will be awarded to a consortium of China Railway Engineering Corporation and China Railway Telecommunication Center.