The Chinese government agreed to provide eight billion dollars to Southern Sudan for development of infrastructure projects. The agreement was reached during the recent visit of Southern Sudan President Salva Kiir to China.
Funds provided by China will be spent on roads and bridges, agriculture, and telecommunications projects in the next two years. Chinese companies will be involved in these projects.
For Sudan and Southern Sudan, the main source of income is the extraction of oil. The oil production is mainly located in the territory of Southern Sudan, but the pipelines to the port on the Red Sea, laid through Sudan. Southern Sudan, dissatisfied with the tariff for transportation of oil, has offered to build a pipeline that goes to the ports of the Indian Ocean.
China is the main buyer of oil from Sudan and Southern Sudan. China has invested hundreds of millions of dollars in the mining infrastructure of Southern Sudan and the Sudanese oil pipeline. Because of the Sudanese border disputes, which often involving armed clashes, and the negotiation on the division of oil revenues, China faced with disruptions in energy supplies.
To resolve the conflict between Sudan and South Sudan, on April 25th the Chinese Foreign Ministry announced that China will send a special representative who will try to bring an end to violence.