mlennyma wrote:We will reap big from the construction of the standard gauge railway,this project requires banks with a large balance sheet and equity is already in talks with all the contractors for financing agreements we can't wait to see the growth when the projects gains motion...says J.m
1) The Chinese are financing it and building it so why the need for local financing? What GoK is financing has and will be raised from the Eurobond & Infrastructure Bonds. Whereas ALL banks can/will buy the infrastructure bonds, banks prefer lending at much higher rates/spreads to the private sector.
2) There may be some local financing for some local firms but the Chinese will probably find a way into this market as well. They have trillions of $$$ so why not venture into this sector? It is only a matter of time until a Chinese Bank buys into a local bank.
Real value in the short term comes from ancillary industries that can spring up around the SGR construction. Hopefully, this results in skills transfer that leads to long-term benefits.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett