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Business / Companies

CRBC on road to deals in Myanmar

By Zhong Nan and Jing Shuiyu (China Daily) Updated: 2016-07-08 08:17

First state project of Southeast Asian nation's new govt goes to Chinese firm

China Road and Bridge Co Ltd has won a bid-winning notice from Myanmar's Ministry of Construction to build two sections of road in the Greater Mekong Subregion, chairman Wen Gang announced on Thursday.

Wen said CRBC's Myanmar office received a bid-winning notice for the Eindu-Kawkareik Road Improvement Project, Lot 1 and Lot 2, issued by the government of Myanmar last week.

The project, located in the Greater Mekong Subregion, is the first state project the new Myanmar government has publicly awarded to Chinese companies after coming to power, and also the first project funded by the Asian Development Bank that CRBC has won in the country in recent years.

The 65-kilometer-long Eindu-Kawkareik road project, located in Karen state in southern Myanmar, is a part of the subregion's East-West Economic Corridor Belt.

As an important road in the economic belt, it would not only play a key role in connecting Myanmar and Thailand, but also be effective in promoting the economic development of eastern Myanmar.

"Most of the countries in the Association of Southeast Asian Nations depend on commodity, energy and agricultural products trade," said Wen.

"However, the shortage of infrastructure facilities such as roads, bridges and bulk ports has affected government revenues and people's living standards within the region."

As it is still in the project's early stage, no financial figures regarding the project have been released by Myanmar's government yet.

Luo Renjian, a researcher at the Institute of Transport Research at the National Development and Reform Commission, said the cost of building such a road with four lanes would cost between $600 million and $700 million based on the current market prices in developing countries.

With more than 50 branches and offices in more than 50 countries and regions in Asia, Africa, Europe and the Americas, CRBC has established an efficient operation and development management network in global markets.

The company's business mainly focuses on contracting for such projects as roads, bridges, ports, railways, airports, tunnels, water conservation projects, municipal works and dredging works.

Fang Qiuchen, president of the China International Contractors Association in Beijing, said continued foreign and domestic investment in infrastructure, including roads and town expansion, were key factors for sustained economic growth in countries and regions, especially Africa and Southeast Asia.

CRBC, which is also building the 472-kilometer Mombasa-Nairobi standard gauge railway, has signed deals worth $500 million with local Kenyan contractors, creating more than 38,000 jobs in the process, according to the Kenyan government.

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