Airport renovation halted
Guyana has asked a Chinese company to halt a US$138 million renovation of its main international airport following allegations of corruption. President Donald Ramotar said his government and Chinese embassy officials are probing why the World Bank has barred the parent company of China Harbor Engineering Co (中國港灣) from bidding on certain bank-funded projects from 2009 to 2017 because of the allegations. Ramotar said in a statement on Friday that the company can still go ahead with preparatory and geotechnical work related to building a new terminal at Cheddi Jagan Airport and extend its main runway by more than 1,000m. Opposition leaders are seeking to halt the project in its entirety.
SAIL to borrow US$1 billion
Steel Authority of India Ltd (SAIL) will raise 60 billion rupees (US$1 billion) through debt this fiscal year as earnings and cash reserves decline, said a person familiar with the plan. The funds will be raised through bank loans and bond sales in the year ending March 31 next year and mark a 62 percent increase in borrowings over the previous year, the person said. Debt as of March 31 was 163.2 billion rupees. The state-run company is investing US$13 billion to upgrade plant machinery, develop mines and increase production capacity by 59 percent to 21.4 million tonnes, betting on rising demand in India.
Inflation at slowest in year
Inflation slowed to the weakest pace in a year this month, an official estimate showed yesterday, mirroring slowing economic growth in the country. Consumer prices were up 6.9 percent year-on-year, after increases of 8.34 percent last month and 10.54 percent in April, according to the General Statistics Office. The inflation rate for the first six months of the year stood at 12.2 percent year-on-year. The national economy grew 5.9 percent last year and the government is aiming for a 6 percent to 6.5 percent expansion this year. The central bank this month announced its fourth round of cuts this year to boost the economy.
Toyota to move production
Toyota Motor Corp said it would transfer its Yaris compact car production for North America to France from Japan in May next year, marking the first time the company will export cars from Europe to that market. Analysts said the move, announced by Toyota on Friday, is aimed at keeping a strong yen and soaring energy costs from affecting its earnings. Other Japanese automakers have also shifted some export production out of Japan. The move by Toyota follows plans by rivals Honda Motor Co, Nissan Motor Co and Mazda Motor Corp to open new factories in Mexico to serve North America and reduce loss-making exports from Japan.
Bright Food to buy Diva
China’s Bright Food Group (光明食品) is set to buy a 70 percent stake in Diva Bordeaux, the independent wine broker said on Saturday. “This deal is contingent on Shanghai Sugar, Cigarette and Wine acquiring a stake in Diva Bordeaux,” Bright Food said in a statement, referring to one of its subsidiaries. Diva will be able to “reinforce its international development, especially in China, through Bright Food’s distribution network, which includes hundreds of specialized shops,” according to Bright Food, a state-owned conglomerate that is one of China’s largest food producers.