Published Date : Dec 03, 2015
China Pacific Construction Group (CPCG), China’s largest private builder in terms of revenue, recently signed a contract worth $3.2 bn to build an expressway in between Albania and Montenegro. The construction of expressway between Albania and Montenegro is expected to begin in the latter half of 2016. According to the representatives of China Pacific Construction Group (CPCG) the expressway construction project is expected to be completed in eight years.
The 280 kilometer link between Albania and Montenegro is expected to be one of the biggest construction projects for the China Pacific Construction Group. As a collateral for the construction project, the firm has plans to use toll rights. According to Yan Jiehe, financing is not yet finalized for the construction project. China Pacific Construction Group’s foray into Europe is followed by Beijing’s encouragement for the domestic firms to consider overseas locations for business opportunities. Beijing encourages the domestic firms to consider the ‘go-out’ policy for business opportunities.
The highway construction deal came right after a consortium led by the China Railway Group (CRG) stated that it had been awarded a 10 bn yuan contract to construct the Hungarian railway section linking Budapest with Belgrade in Serbia. This is considered to be China’s first ever high-speed rail win in Europe.
According to Premier Li Keqiang, at a conference held with eastern and central European leaders, China was ready to provide flexible funding options to the countries to update their infrastructure. China was ready to offer flexible funding to the countries as long as Chinese products and equipment were used. With the new expressway construction project between Albania and Montenegro, China Pacific Construction Group is willing to contribute further towards the growth of their construction industry. Government support and funding will help complete this construction project as scheduled, in roughly eight years.