Chinese company and neighboring country maintain 30-year excellent relationship
The first phase of a crucial energy project in Pakistan is scheduled to be put into operation next year, benefiting 2 million local people, according to its building contractor, China Machinery Engineering Corp.
The Pakistan Thar Mining and Power Project, whose construction started in April 2016 and is planned to be completed in October 2019, is the first coal and power integration project for the China-Pakistan Economic Corridor and is thus of great political and economic significance to both countries, industry insiders said.
Involving more than $2 billion in investment, the project was signed in 2014. Chinese and Pakistani consortium banks led by China Development Bank and Habib Bank joined the deal after inking a series of financing agreements.
Chinese company and neighboring country maintain 30-year excellent relationship
The first phase of a crucial energy project in Pakistan is scheduled to be put into operation next year, benefiting 2 million local people, according to its building contractor, China Machinery Engineering Corp.
The Pakistan Thar Mining and Power Project, whose construction started in April 2016 and is planned to be completed in October 2019, is the first coal and power integration project for the China-Pakistan Economic Corridor and is thus of great political and economic significance to both countries, industry insiders said.
Involving more than $2 billion in investment, the project was signed in 2014. Chinese and Pakistani consortium banks led by China Development Bank and Habib Bank joined the deal after inking a series of financing agreements.
Facing fierce competition in the bidding phase, CMEC managed to avert a price war. Instead, the company worked hard to understand the property owner's needs and offered comprehensive solutions.
Ranging from submitting a feasibility research report to providing technological and financing plans, CMEC is shifting its role from solely being a building contractor to an all-around service provider along the value chain, involving financing, operation and maintenance.
The financing-driven EPC mode is increasingly gaining acceptance as a new trend in the international construction engineering market and the heavy investment in the project has drawn Chinese banks' attention to the Pakistani market, CMEC executives said.
As a growing number of Chinese companies are turning their eyes to Pakistan, one of the countries involved in the Belt and Road Initiative, the financing-driven EPC practice will help them gain expansion in service domains, extension along the value chain, an increase in market share and industrial competition, they said.
While campaigning for the Belt and Road Initiative, CMEC said it will sharpen its competitive edge, focus on innovation, and maintain its responsibility to become a top multinational company and brand.
Over the past three decades, CMEC has accumulated rich expertise and experience in contracting international construction projects, especially in the power industry.
The company has created many firsts in China. It was the first Chinese company to undertake an international engineering project under the arrangement of export supplier's credit.
Due to its outstanding performance in Turkey, it beat its competitors to become the first winner of Luban Awards for overseas construction projects among the Chinese-built coal-fired power stations in December 2012.
In November 2015, the company again won the honor for a power plant it built in Belarus.
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