CSCEC ME's China HQ to bankroll Belt and Road projects
CSCEC ME has told Construction Week its headquarters in China will provide financial and technical support for Belt and Road projects in the Middle East.
China State Construction and Engineering Corporation Middle East (CSCEC) will get financial and technical help from its HQ to build Belt and Road projects in the Middle East.
President and chief executive officer of CSCEC ME, Yu Tao, told Construction Week that the Chinese state-owned engineering giant would bankroll its GCC-based business to enhance development of the Belt and Road initiative.
"There is going to be more landmark projects participated by Chinese enterprises, and we are going to get support from our HQ, both technically and financially, to boost our performance in the Middle East region by increasing capacity and international scale," Tao said.
Support from the company's HQ in Beijing would be "backboned" by the $4trn Belt and Road initiative, which Tao called "a great opportunity" for the contractor.
The Belt and Road megaproject was launched by Chinese President Xi Jinping in 2013. It aims to connect more than 60 countries across three continents.
Chinese goods will flow through Asia, Africa, and Europe via a continental road network, sea routes through the South China Sea and the Indian Ocean. It aims to promote economic cooperation between China and the countries in which the infrastructure will be built.
The multilateral project has the potential to connect an estimated 4.4 billion people by building infrastructure and boosting financial and trade ties. It will cover a third of global GDP and one quarter of total global trade in goods and services, CSCEC ME claim.
Physical infrastructure, such as roads, railways, ports, and aviation hubs, is underpinned by strong financial support from the Chinese state. At full maturity, investment is expected to reach an astonishing $4trn.
Backed by China, financing institutions have been set up to develop the project.
Capital has already been pumped into a power distribution upgrade in Bangladesh; rail networks in Indonesia, Africa and Laos; and maritime infrastructure in Pakistan and Oman.
Following Xi Jinping's state visit to the UAE last week, 13 agreements were signed between China and the UAE paving the way for cooperation on the megaproject.
Dubai's port operator, DP World, also signed a deal with Zhejiang China Commodities City Group to build the 3km² Traders Market at the Jebel Ali Port and Free Zone in Dubai for the Belt and Road project.