Red flag investments

Development and mega-infrastructure projects are often designed without appropriate consideration of their impacts on the environment and communities, and frequently lack meaningful public consultation and robust environmental and social due diligence prior to fund allocation. 

As the world races to implement large-scale infrastructure investments that have few known benefits for those most in need, we observe how, in many cases, regulations that govern access to information, public procurement and environmental and social impact assessments are circumvented or deliberately undermined.

We examine how withholding essential investment information can lead to large-scale infrastructure investments becoming swamps of corruption and mountains of debt, with few or no positive outcomes for communities in need. 

Red flag

How Chinese investments compromise Serbian independence

The Smederevo steel factory, founded in 1913, was bankrupt in 1990s due to the sanctions during the Yugoslav wars. Since 2016 it is operated by HBIS GROUP Serbia and owned the state-owned Chinese iron and steel company Hesteel Group Company Limited – one of the world’s biggest steel producers.

The Smederevo steel mill and a trade port on Danube River cause significant air pollutions and loud disturbing noise. Readings of the air quality near the steel factory showed particle pollution, above the limits in national legislation.

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