China Development Bank provides loan for Phase 1 of the Jinfei Economic and Trade Cooperation Zone Project

China Development Bank provides loan for Phase 1 of the Jinfei Economic and Trade Cooperation Zone Project In July 2007, during an official visit to China, the Prime Minister of Mauritius signed an accord with the Tianli Group for the setting up of the Jinfei Economic and Trade Cooperation Zone in Mauritius.

Then, in January 2009, Taiyuan Iron and Steel Group and the Shanxi Coking Coal Group joined the project and, as a result, major modifications were made to the project design.

Taiyuan Iron and Steel Group, Shanxi Coking Coal Group, and Tianli Group then incorporated a company in China under the name of Shanxi Jin Fei Investment Co. Ltd and identified China-Africa Development Fund as a new partner.

The four partners also created another company registered in Mauritius in June 2009 under the name of Mauritius Jin Fei Economic Trade and Cooperation Zone Co. Ltd (or JFET).

The shareholder structure of this company consists of: Taiyuan Iron and Steel Company - 50%, Shanxi Coking Coal Group - 30.2%, and the Tianli Group - 19.8%. The China-Africa Development Fund is not recorded to have shares as of the first quarter of 2009. At the time of registering in Mauritius, the JFET company was reported to have financial capital of $80 million USD.

In 2009, China Development Bank provided a loan for Phase 1 of the Jinfei Economic and Trade Cooperation Zone Project. This phase of the project consisted of physically setting up the industrial zone.

It concentrated on the development of infrastructure, water and electricity supply, and the construction of residential and industrial buildings. Phase 1 commenced on September 16, 2009.

As of fourth quarter 2010, the basic infrastructure is recorded to be near completion, and plans are being developed for a second phase (around 40 Chinese companies indicated interest in future investment into the zone).