In 2022, China Development Bank (CDB), fully implementing the decisions and instructions of the CPC Central Committee and the State Council, has been focusing on its mandate based on its functional positioning, and actively played its role as a development finance institution (DFI) to support strengthening infrastructure construction in an all-round manner. It issued more than 1.4 trillion yuan of medium- and long-term loans for infrastructure construction in five priority areas: network infrastructure, industrial upgrading infrastructure, urban infrastructure, agricultural and rural infrastructure, and national security infrastructure, lending strong support to a number of major projects, such as Baihetan Hydropower Station, Sichuan-Tibet Railway, Central Yunnan Water Diversion Project, and Guangdong Offshore Wind Power Farm.

From January to November last year, investment in China’s infrastructure grew by 8.9% YoY, with a large number of major projects launched at a faster pace. As a leading bank supporting China’s infrastructure construction, CDB actively cooperated with macroeconomic control and made counter-cyclical adjustments, effectively meeting investment and financing needs under the guidance of relevant ministries and commissions. It actively participated in the formulation of major infrastructure development plans and the design of systematic financing plans for priority projects, and gave full play to the advantages of medium- and long-term loans and the role of CDB infrastructure investment fund to concentrate superior resources, strengthen the linkage between investment and lending, and provide long-term and stable financial support for infrastructure construction in a market-oriented manner.

In order to meet the funding needs for the full life cycle of infrastructure construction, CDB extended the maximum term of loans for infrastructure projects in various fields. The maximum term of loans for major projects such as water conservancy, railway, urban rail transit, and airport has been extended to 45 years. By the end of 2022, 76% of CDB’s long-term loans with a term of more than 15 years have been granted to for infrastructure. At the same time, it has led commercial banks and private capital to invest more funds with a longer term in infrastructure by taking the lead to form banking syndicates and issuing special bonds.

In order to provide better financial services for infrastructure, CDB strengthened operation and management, enhanced resource security, and formulated a series of supporting policies and measures. It addressed positive incentives, and mobilized backbone forces to form a “Party member commando” to go to project sites and work during holidays, giving full play to the “militant bastion” role of the primary Party organizations and the exemplary and vanguard role of Party members, cracking “hard bones” and fighting in “tough battles”, and lending solid support for stabilizing the macroeconomic market.

Waste and sewage treatment is closely related to people’s lives. In 2022, in implementing the special financing scheme of “RMB100 billion loans for 100 counties”, CDB issued 87.7 billion yuan in loans to support the construction of domestic waste and sewage treatment facilities in more than 440 counties (districts), helping to shore up weak areas in environmental infrastructure. In Anxi, Fujian Province, waste and sewage treatment facilities in some villages lag far behind, and local people have long been plagued by problems such as “flies and mosquitoes, and strong smell”. With the commencement of the rural sewage treatment project (Phase I) in Anxi County supported by CDB, 275 villages of 410,000 rural people across the county will usher in a beautiful new life with “lush mountains and lucid water.”

As the world’s largest energy producer, China has established a pluralistic clean energy supply system. By the end of 2022, the last million-kilowatt unit of Baihetan Hydropower Station, the largest hydropower project under construction in the world and the most challenging hydropower project in terms of overall technological complexity, has been put into operation, marking the completion of the world’s largest clean energy corridor, consisting of Baihetan Hydropower Station and other world-class giant cascade power stations in Wudongde, Xiluodu, Xiangjiaba, Three Gorges and Gezhouba, where one drop of water can generate electricity for six times, maximizing the utilization of water resources in the Yangtze River basin. Baihetan Hydropower Station has a total installed capacity of 16 million kW, ranking second in the world, next only to the Three Gorges Project. Over the years, CDB has provided strong and sustained support for the construction of the hydropower station by taking the lead in establishing banking syndicates. Since 2021, CDB has cooperated with China Three Gorges Corporation again, innovating the loan cooperation mode between the bank and the real economy, providing Baihetan Hydropower Station with financial support in line with the project’s cash flow, playing a positive role in smoothening the overall cash flow of the giant hydropower project, and effectively guaranteeing the demand of the project for construction funds.

As a “major artery” of international connectivity, China Railway Express (CR Express) have become an important carrier for promoting the joint building of the “Belt and Road” and a backbone of international logistics and transportation in Eurasia. In 2022, the total number of heavy container trains of CR Express (Chongqing) exceeded 10,000. The China-Vietnam, China-Laos and China-Myanmar Express trains all pass through the New Western Land-sea Corridor, which are connected with the CR Express from Chongqing. The Tuanjiecun Central Railway Station in Shapingba District, Chongqing is the starting station of CR Express (Chongqing) and the corridor. The local government has not only focused on the construction of park passageway and port, but also on the building of an industrial structure based on international logistics, with parallel development of international trade, supply chain finance, urban supporting facilities, and intelligent technologies and sci-tech innovation, aiming to build an “upgraded version” of the international logistics city with integrated development of “port, industry, city and landscape”. CDB Chongqing Branch has provided strong financial guarantee for this package of infrastructure construction with medium- and long-term funding, issuing 800 million yuan to the Chongqing International Logistics City in 2022. “We are devoted to supporting the construction of the park with full dedication. The loan funds in place gave strong support to the project in exploring and developing the mode of ‘express + park’ and ‘express + economy and trade’, further improving the service functions, and promoting the construction of a hub-centered economic zone with interconnected development of the Belt and Road, the Yangtze River Economic Belt and the New Western Land-sea Corridor,” said Long Jimiao, Customer Manager of CDB.

According to a source of CDB, in the next step, the bank will earnestly study and implement the spirit of the 20th CPC National Congress, balance development and security, and better play its role as a DFI. It will speed up the building of institutions and mechanisms compatible with infrastructure investment and financing services, enhance financial risk control, provide efficient financial support for the planning, design, construction, operation, maintenance and renewal of infrastructure projects throughout their life cycles, and actively help build a modernized infrastructure system.