Nation's Contractors Eye Social Programs

The Doraleh Multipurpose Port in Djibouti, built by China State Construction Engineering Corp, has an annual designed handling capacity of 7.08 million tons. [Photo/Xinhua]

While giant infrastructure projects such as roads, bridges and airports have long been the preferred calling card for Chinese contractors in global markets like Africa, many of them are changing their business formats and participating in more developmental, social and utility projects on the continent.

Such a shift is led by the world's growing urbanization and industrialization, as well as many African countries moving to improve people's living standards by investing in more projects such as public services, urban facilities, modern transportation, agriculture and manufacturing, said Wei Xiaoquan, a researcher specializing in regional economic development at the University of International Business and Economics in Beijing.

"Many Chinese players are fully aware they cannot overwhelmingly rely on construction work to make a living because it is the lower rung of the industrial ladder," he said.

Take the case of China as an example. A huge number of large-scale infrastructure projects were either built or guided by foreign firms four decades ago. But that is something people rarely see today, he said.

PowerChina Harbour Co Ltd, a subsidiary of Power Construction Corporation of China, a centrally-administered State-owned enterprise, said the Zuerat Dam project in Mauritania built by the Chinese company will substantially ensure drinking water supplies to local communities after the construction work passed final inspection in September.

Located in the inland mining area in Zuerat, a large town in Mauritania, the concrete gravity dam is 19.1 meters high and 23.3 meters long. Its reservoir can hold a maximum of 363,000 cubic meters of water.

The dam is the first water conservancy project in the region and is expected to provide water for residential, industrial and animal husbandry uses in affected areas once it becomes operational, said Cui Yongyue, PowerChina Harbour's vice-president.

With a permanent population of more than 40,000, Zuerat sits in the southern part of the Sahara Desert where there is a severe shortage of water. The only water supply is transported by train from the city of Nouadhibou, more than 700 kilometers away, which can hardly meet local needs.

Even though a water conservancy facility is urgently needed, the dam's construction in the region was difficult due to complicated geologic conditions, Cui said.

Therefore, the Zuerat Dam project has been highly valued by the local government and the people since construction started. Local authorities said water pipes are to be installed to transmit water from the reservoir to the urban region 30 km away from the mining area, to boost local economic and social development.

China Harbour Engineering Co Ltd, or CHEC, a marine engineering project specialist and a subsidiary of China Communications Construction Co Ltd, another Beijing-based central SOE, said in a separate development it will complete the Port of Cotonou No 5 wharf project in Benin, which belongs to the Port of Cotonou Authority, in 2024.

The project adopts the EPC－engineering, procurement and construction－contracting mode, a common arrangement in the construction industry. It mainly consists of construction of a new general wharf, the formation of a rear land area, demolition of the existing eastern breakwater, the extension of the western breakwater and dredging the harbor basin.

"Being the unique port in Benin, the project will greatly enhance Cotonou's bulk cargo distribution capacity and promote Benin's social and economic development once it is completed," said Tang Qiaoliang, chairman of CHEC.

Eager to upgrade their economies to the next level and stimulate more growth points for the post COVID-19 era, African economies like Nigeria, Ghana and Algeria have already started to build more manufacturing-themed economic zones, regional service hubs for ocean shipping, air cargo and tourism businesses, said Zhang Shenfeng, vice-chairman of Beijing-based China Council for the Promotion of International Trade.

"These economies are also demanding more supporting projects and businesses such as metro train networks, cold chain warehouses and healthcare services to accelerate their pace of urbanization and improve people's well-being," Zhang said.