SHANGHAI: Contracts and credit agreements worth US$2 billion are expected to be signed at the Shanghai Co-operation Organization (SCO) summit that starts tomorrow, a senior official said yesterday.

Yu Guangzhou, vice-minister of commerce, said at a press briefing that these projects are of great importance to the SCO's six member countries China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan.

A highway running through the centre of Tajikistan and Uzbekistan, high-voltage power lines in Tajikistan and a major cement plant in Kyrgyzstan are on the list.

"The US$900 million buyer's credit China promised in 2004 to grant to member countries has been earmarked for different projects," said Yu.

"The SCO Bank Syndicate, founded in November 2005 to finance multilateral projects, has also made steps forward," he added.

An industrial and commercial forum will take place tomorrow on the sidelines of the summit.

More than 500 business people from the six countries will take part to exchange views on trade, investment and financing, Yu said.

Today the organization will establish a committee for business leaders, bringing together heads of large enterprises from the six countries.

Yu said the committee, which currently has 70 Chinese and 40 Russian members, would hold meetings each year in different member countries.

Over the past five years, the SCO has worked out a series of legal documents to facilitate the free flow of commodities, capital, services and technology among member countries.

The six members have signed a memorandum on regional economic co-operation and trade and investment facilitation as well as a multilateral economic and trade co-operation guideline.

"These documents have defined the goals, tasks and measures for members to strive for," Yu said.

The SCO also has five working groups in different member countries to tap e-commerce, customs, quality control, investment promotion and border trade potential, and cut down trade and investment costs.

Last year, the six countries reported a total trade volume of US$37.7 billion, more than double the amount in 2001 when the SCO was founded.

Over the past five years, China has invested approximately US$8 billion in the other five countries, four times the amount in 2001.

By press time, leaders of Pakistan and Kazakhstan had arrived in Shanghai.

(China Daily 06/14/2006 page2)