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Firm inks Indonesian deal

By Wan Zhihong (China Daily)
Updated: 2007-03-23 09:07
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China National Technical Import and Export Corporation (CNTIC) will develop a 600-megawatt coal-fired power plant in Indonesia, with a total investment of $430 million.

The Indonesian contract will boost CNTIC's overseas project contracting business, it said in a statement.

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CNTIC and other Chinese companies have signed power plant EPC (engineering, procurement and construction) contracts in Indonesia with a total value of $2 billion. The total installed capacity is 2,700 megawatts, the statement said.

CNTIC earlier won a tender for the Philippines Mainline South Railway project.

Other Chinese contractors have also expanded their market shares in recent years. China has become the sixth-largest engineering contractor in the world, with a turnover of $21.76 billion in 2005, according to the China International Contractors Association.

In 2005, Chinese contractors signed 49 contracts worth over $100 million each. The Federation Tower in Moscow will be built by theChina State Construction Engineering Corporation, one of the biggest engineering contractors in China.

Asia is the largest overseas market for China's international project contracts. Chinese contractors have also performed impressively in the United States, the world's leading market, as well as in Eastern Europe and Latin America.

In January, China Metallurgical Group Corp (MCC) won a contract to develop an iron ore mine in Australia, the largest mine construction contract awarded to a Chinese company to date.

The agreement with CITIC Pacific Ltd will see MCC construct the SINO Iron Ore Mine in Cape Preston, Western Australia. The SINO mine, funded by an investment fromHong Kong-based CITIC Pacific Ltd, will mainly extract magnetite ore. Total investment is estimated at $1.98 billion.

The nation's turnover in overseas project contracting is expected to reach $50 billion by 2010, according to the China International Contractors Association.

The association said in its latest report that the volume is likely to increase by 15 percentyear-on-yearduring the country's11th Five-Year Planperiod (2006-10).

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