(Photo of the Algeria's Constantine University Town contracted by Anhui Sinoocean Union Construction Co., Ltd)
BEIJING, Jan. 16 (Xinhua) -- With Africa as an important foothold to implement the Belt and Road Initiative, Anhui's construction industry has taken an active part in African infrastructural construction along with its internationalization process.
The total turnover of Anhui's foreign contracted projects was 2.287 billion U.S. dollars in the first three quarters of 2017, ranking the 10th in the country and 3rd in central China, according to a source with the Department of Housing and Urban-Rural Development of Anhui Province (AHHURD).
Of all, Africa contributed 1.241 billion U.S. dollars, accounting for 54.26 percent of the total turnover with most foreign contracted projects being based in Algeria, Angola and Mozambique.
Pioneers lead the way
Guided by supporting policies from Anhui provincial government, a host of leading enterprises in Anhui, including Anhui Construction Engineering Group (ACEG), Anhui Foreign Economic Construction (Group) Co., Ltd. (AFECC), China National Chemical Engineering Third Construction Co., Ltd. and Bengbu Design & Research Institute for Glass Industry, enhanced their international competitiveness and pioneered the way of market development in Africa.
For example, ACEG has created a layout dominated by engineering contracting supported by foreign trade and labor dispatch. Now it operates in countries including Algeria, Angola, Nigeria, Pakistan and Bolivia.
Through the engineering subcontracting of ACEG, Anhui Sanjian Engineering Co., Ltd. (AHSJ) has enhanced its strength and developed its overseas markets through major projects abroad.
AHSJ undertook the 6,000-suite housing project and ENP 1,000-suite housing project in Constantine, Algeria and the 500-suite public rental housing project in Sedrata, Souk Ahras Province, with a total contract amount of 620 million U.S. dollars. Besides, AHSJ involved in Chinese central enterprises' labor subcontracting in countries including Singapore, Saudi Arabia, the UAE, South Africa and Angola, and dispatched a total of 2,800 workers.
Investment and trade activities as the boost
In ways of foreign trade, investment and hotel industry, AFECC has made brilliant achievements in driving the globalization of Anhui's construction industry: in the first three quarters of 2017, AFECC completed total overseas investment of 341 million U.S. dollars in countries including Madagascar, Mozambique, Zimbabwe, Zambia, Malawi and Togo. The total turnover of its foreign contracted projects in Africa was 310 million U.S. dollars, accounting for 13.55 percent of the total turnover of Anhui's foreign contracted projects.
From Algeria's Constantine University Town, Ethiopia-Djibouti Cross-border Water Supply, to Kasama Aerodrome Project in Zambia and integrated service centre at the headquarters of the African Union…While developing in Africa, Anhui's construction enterprises are improving local infrastructure meanwhile.
Risks and opportunities ahead
With growing international competition, Anhui has also realized that such factors as the small quantity of leading construction enterprises, single modes of engineering management and uneven distribution of overseas projects have restricted Anhui's construction industry in further developing overseas markets.
The turnover of European projects contracted by Anhui's construction enterprises was 45 million U.S. dollars in the first three quarters of 2017, accounting for only 1.96 percent of the total, according to a source with AHHURD.
Facing risks and challenges, Anhui is speeding up the improvement of guarantee mechanisms, exploring new model of government-enterprise cooperation, and providing multiple services including policy guidance, project consultation, risk warning, investment information and legal aid for the globalization of enterprises. (Edited by Niu Huizhe, niuhuizhe@xinhua.org)
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