Which country will benefit from the $37m loan?

When the former Minister of Finance and DPM, Sir Terepai Maoate announced the negotiation of the Chinese loan for infrastructure and while giving the impression that it would act as an economic stimulus, but the question is how?
While recognizing that the infrastructure work is needed, the question is what financial benefits will trickle down into the local economy by creation of jobs?
Soft loans could also be termed tied loans whereby the lender usually insists on providing their labour and materials, thereby ensuring that all the financial benefits go back to the originating country.
When contacted for comment, local businessman and politician Teariki Heather in his private capacity as an employer of many local workers as the owner of one of the largest construction related companies in the country. Cook Islands Times asked whether his company or any other in the industry had been approached to take part in the infrastructure project which is due to start in March 2010?
The businessman said he not been approached and nor did he know of any other companies that had been contacted on the matter. He said he employed 72 local people which equated to 72 families which were depending on the company for their livelihood. He said the company is trying to set their plans for 2010 but it has been difficult to make any business forecasts because there are no major projects going at the moment and in the uncertainty of any work flowing from the government infrastructure project might have an adverse effect on local employment opportunities.
An unofficial source from MOIP said they had not yet been told of the terms and conditions of the Chinese loan but has put in a request that much of the ‘physical work’ be carried by local labour and for the materials to come from our local suppliers because after all the Chinese money is a ‘loan’ that has to be paid back and not a grant (free).
When asked what the Minister thought of the concept advocated by the famous 20th century economist, John Maynard Keynes whose theory of economy was that when national economies suffer a downturn, governments should borrow and spend money on infrastructure projects to boost economic activity and that part of the proceeds of the resulting economic growth should then be used to repay the debt.
Quite right said the Minister adding that if it were up to him from the beginning, he would have preferred to have even more local content but the loan had already been negotiated by the previous Finance Minister, Sir Terepai Maoate.
According to Minister Heather, he agrees that local content is very important in order to stimulate the economy by allowing the local public and private sector to take part in such large projects.