Let China fund infrastructure-Tepaki

On Tuesday, the Herald asked developer Tim Tepaki for his views of government’s move not to uplift the $37 million Chinese loan for infrastructure development.
Tepaki said “It’s understandable, as we continue to lose consumers and taxpayers to depopulation and sustainability of borrowing is declining.” He said while government had to stop the loan he hoped it was a short term measure rather than long term, as failure to develop key infrastructure such as waste management was a recipe for the demise of tourism. Tepaki said Rarotonga’s lagoon cannot handle any more nutrients and if the lagoon deteriorates, tourism is over.
Tepaki said it drives home the point that government must look into developing key strategic assets other than those State business assets government currently operates, to yield a higher level of cash for debt servicing, and funding infrastructure developments that do not yield cash.
User pays is very unpopular politically and unless new revenue streams are found government may be forced to recover the costs of new roads by exacting a road toll as in New Zealand or charging for water.
Tepaki said the Peoples Republic of China’s generosity in assisting Pacific Island States to develop their key assets and stimulate their economies was unmatched by other developed nations. The Chinese he said provided funds at low, affordable interest rates which no other government or bank on the planet will give us, adding it would be insane not to take such funding and use it.
Tepaki said he had read the recent article by The Hon Wilkie Rasmussen and said his take on it was that the Minister was erring on the side of caution and not rejecting all Chinese funding. He said there is talk that NZ Aid wants to take care of us and would prefer we don’t take aid from China, but he puts that down to current advisors the minister has surrounded himself with who still believe in the colony and “big brother” concept. He said it’s time we accept the world economy went into recession except for China and the dynamics of global economy has changed with China now driving global economy. Tepaki said we are fortunate China chose to aid us directly and cheaper and promptly, as NZ Aid has to raise money from international sources (funded by China), add its clip, and we end up paying 3-4% more interest with aid is delivered late. Meantime our people suffer, he said.
Tepaki said he has become aware of a proposal by the Chinese to offer to build up to 200 kit set homes for those in Aitutaki whose homes were damaged or destroyed by Cyclone Pat. He said he understands the Chinese were to consider the costs as a grant so in effect new homes were to be built free of charge. This had to a good deal but he understands it has not been put to the Aitutaki people for their comments.
He said he noted the article took a side swipe at Chinese construction company CCECC over some maintenance issues, but he said anyone in the development industry will know that a maintenance period follows physical construction, when such deficiencies are taken care of and indeed CCECC took care of them. Tepaki went on to say CCECC is the best major works building contractor available to the Cook Islands as they did the Courthouse, Police Station and Stadium on time and on budget and this was a far cry from what has happened at the airport. He said the good thing about CCECC is that it is a State Owned Enterprise backed by its government and you can bet the shirt on your back it will deliver on time and on budget, simply because they are driven by pride and want to perform, not casual like ourselves and big brother Kiwis.
Tepaki told the Herald he is aware government does concern itself with the need to provide locals with work opportunities and rightly so. He said regardless which offshore contractors are used for major works some 80% will be channeled offshore simply because supplies of material and special skilled labour come from offshore. He said when all is done and dusted Chinese contractors are cheaper by far and the savings on development cost adds to local gain.