Spotlight: 16+1 mechanism yields fruitful outcomes in CEE countries

The leaders' annual meeting of China and Central and Eastern European (CEE) countries, also known as the 16+1 mechanism, has yielded rich fruits in extensive fields ranging from infrastructure to energy in the 16 CEE countries.

Established in 2012 in Poland's Warsaw and having developed greatly after the third China-CEE leaders's meeting, the cooperation platform, now serving as an engine for CEE countries to vitalize their sluggish economy and achieve recovery, is widely applauded.

Within this framework of cooperation between China and countries of Central and East Europe, exchanges and cooperation in the fields of investment, energy, infrastructure, trade an tourism, and the scientific and technical cooperation are getting deeper constantly, said Veljko Jovanovic, president advisor of the Serbian Chamber for Commerce and Industry.

DIRECT LINKS

Considering its geographic importance, Central and Eastern Europe marks an essential link in China's Silk Road development initiative, and such inter-connectivity in turn helps improve these countries' infrastructure and boost their economic growth.

The 16+1 mechanism has given new impetus to building direct links between China and Europe.

The first direct rail freight service linking China and Poland began to operate in 2013. It takes 15 days to travel from Chengdu City in southwest China to Lodz, the third largest city in Poland.

The freight train service offers convenience for China-made products' presence in the Polish market and also facilitates the import of Polish foodstuffs into China.

Lodz Deputy Mayor Marek Ciesla said his city will grow to become an important hub for the European economy and perhaps for the entire world.

Lithuania's Klaipeda Port has signed 4 Memorandums of Understanding (MoU) with Chinese partners since 2012, helping it become the fastest growing port in the Baltic Sea.

"Chinese companies with their extensive international experience have significantly contributed to the success of our port, the region and the country," said Arvydas Vaitkus, director general of Klaipeda Port.

The direct air link between Prague and Beijing officially went into operation on Sept. 23, 2015.

The new air link will boost ties between the two countries significantly and lead to more intensive cooperation in the fields of trade, investment, tourism and healthcare.

Czech Prime Minister Bohuslav Sobotka, who discussed the proposal with Chinese Premier Li Keqiang at the China-CEE meeting last December, said he considered this "very good news" for the Czech Republic.

INFRASTRUCTURE INVESTMENT

Alongside the increasingly closer trade relations stemming from the 16+1 mechanism, Chinese enterprises have expanded their investment in the CEE countries, which were eager for capital to upgrade their infrastructure.

In Serbia, the Zemun-Borca Bridge, newly named Pupin Bridge, was completed and opened in 2014, as the first bridge built in Europe by a Chinese company.

Besides, the project for the modernization of the Belgrade-Budapest railway was initially agreed on at the 2013 China-CEE countries leaders' meeting that took place in Romania's Bucharest, while last year's summit held in Serbia's Belgrade saw a MoU signed by China, Hungary and Serbia.

The cooperation plan for the railway construction was signed early this year in Belgrade at the meeting of the Trilateral Group of China, Hungary and Serbia for Traffic and Infrastructure Cooperation, setting dates for certain phases of the project.

The 370 km section of the railway between Belgrade and Budapest will significantly improve the transportation of passengers and goods between the two countries, as it will decrease the traveling time from eight hours to less than three by train.

In Macedonia, two of the main new highways are also being built with a total of nearly 580 million euros (713 million U.S. dollars) in financing provided by the Chinese Exim Bank.

The 50-km-long Miladinovci-Stip highway will connect Macedonia's capital Skopje to the town of Stip, an important economic hub in the east of the country.

Meanwhile, the 57-km-long Kicevo-Ohrid highway is built in the west of Macedonia, improving the connection to its tourism center Ohrid.

The projects will be built by the Sinohydro Corporation from China, but Macedonian construction companies, employing huge workforce in the capacity of subcontractors, will benefit from the cooperation as well.

ENERGY FUELS CEE ECONOMIES

China and Romania have carried out productive practical cooperation within the framework of the 16+1 mechanism, and important breakthroughs have been made particularly in the energy sector including nuclear power, coal-fired power and hydropower.

Among the energy projects, Romania's Rovinari power plant -- a new 600 MW coal-burning power plant -- ranks the most advanced. On Oct. 31, 2014,China Huadian Engineering Co. (CHEC) and Oltenia Energy Holding (OEH) of Romania signed an agreement on the construction of the power plant, with an investment of around 1 billion dollars.

The project was believed to bring advantages to the country's overall economy for approximately 25 years.

On Nov. 10, 2015, China General Nuclear (CGN) signed a MoU with the Romanian national nuclear company Nuclearelectrica for developing, constructing, and operating Units 3 and 4 of the Cernavoda nuclear power plant.

According to Nuclearelectrica, the construction of the two units will double Romania's nuclear power production capacity, while the emission of about 12 million tons of carbon dioxide will be reduced each year as a result.

"Such a project could not be possible without extensive cooperation between the Chinese and the Romanian authorities," said Razvan Paunescu, Coordinating Consultant for CGN on the project.

He added that the 16+1 mechanism was an extraordinary platform, as it provides the framework for concrete and efficient partnership, based on a win-win cooperation principle.

Another example for energy cooperation is Serbia's Project Kostolac, in which China Machinery and Engineering Corporation (CMEC) has helped revitalize two blocks (B1 and B2) of Serbia's Kostolac thermal power plant, which will extend the plants' lifetime for two more decades as the first phase of the project.

The second phase is the construction of a 350 MW new block B3, the first new energy facility in almost three decades.

Power plant Kostolac is very important for the Serbian economy because nearly 3,000 people are employed in power plants and coal mines, which means that almost 15,000 people are living on power plants, according to Nebojsa Misic, project manager of Kostolac power.

Serbia is very satisfied with the CMEC's organization and works though it is the first Chinese company in Serbia's power industry, he added.

Experts and officials from CEE countries all highly appreciate the 16+1 platform which has already materialized in concrete successful partnership.

"It is very important for Bosnia and Herzegovina to be part of a cooperation that surpasses the borders of regional cooperation and connects us with Europe and Asia," said Denis Zvizdic, chairman of the Council of Ministers of Bosnia and Herzegovina.

Noting the landmark achievements, CEE countries and industries are now looking forward to the coming summit in Suzhou City in east China.

"From the geopolitical point of view, the 16+1 cooperation format set up by China for cooperation with CEE countries seems perspective," said Slovak Economy Ministry State Secretary Rastislav Chovanec. Endi