Published By : 02 Dec 2015 | Published By : QYRESEARCH
China’s biggest private builder in terms of revenue, the China Pacific Construction Group recently signed a US$ 3.19 billion (EUR 3 billion) deal to construct an expressway between Albania and Montenegro, according to the company.
It said that the construction of the 280 kilometer highway linking the two countries will commence in the latter half of next year and will take an estimated eight years for completion.
Chairman of China Pacific Construction Group Yan Jiehe informed reporters in Beijing on Thursday that the company intends on using toll rights as collateral for the construction project. The financing, Jiehe said, is still to be finalized.
The foray of the China Pacific Construction Group into Europe comes after Beijing encouraged local and domestic companies to broaden their horizons and look abroad for business opportunities. This has been part of what is being called China’s “go out” policy.
The expressway deal follows a day after a China Railway Group-led consortium announced that it had just won a US$ 1.57 billion (10 billion yuan) contract to construct the Hungarian portion of the railway project that connects Budapest in Hungary with Belgrade in Serbia. This has been the first high speed rail contract in the European Union for China.
The rail connect is an estimated 350 kilometers long, including the Siberian and Hungarian portions and will take two years for completion. The China Railway Group is responsible for constructing 160 kilometers of the route. The agreement between the three countries to build the rail link was announced in 2013.
Speaking at a summit held in the eastern Chinese city of Suzhuo on Tuesday, Premier Li Keqiang told leaders of eastern and central Europe that China was more than willing to offer more relaxed and flexible funding conditions to nations who wish to upgrade their infrastructure under the condition that they used Chinese products and equipment.