The World Bank’s biggest supplier country: China’s top 10 contractors

Devex has analyzed the World Bank’s major contract awards to explore funding trends, priority sectors, and key projects for contractors from its biggest supplier country: China. In the 2020 fiscal year, the World Bank awarded 2,776 contracts worth a total of $7.87 billion — 23.6% of which went to Chinese organizations. China consistently won over 20% of the total award funding from 2018 to 2020. Last year, Indian contractors received the second-most with 17% of total funding, while Turkish contractors won the third-most with 6% — but combined, they still received less than their Chinese counterparts. Though Chinese organizations received the largest share of contracts annually from 2017 to 2020, total contract funding per year has significantly decreased, declining from $4.3 billion to $1.9 billion over that period. Sectoral priorities In 2020, the majority of contract funding won by China-based organizations was concentrated in three sectors: energy and extractives, with $877 million in funding; water, sanitation, and waste, with $421 million; and transportation, with $384 million. This is a change from 2017 when the water and sanitation sector won the majority of contracts, worth $2.2 billion in total. In terms of procurement categories, Chinese contractors won the most funding for civil works and goods. Out of the $1.9 billion they received in total, $1.5 billion — about 80% — was for 84 civil works contracts and $306 million — 16% — was for 99 goods procurement contracts. Indian contractors similarly won substantial amounts for civil works and goods procurement — with 90 contracts worth $1.2 billion across the two categories — as did Turkish contractors, with 25 contracts worth $457 million. The Dasu Hydropower Stage I Project — aimed at expanding hydropower in, Pakistan’s energy mix — was awarded the most funding for a single project in 2020, with three civil works contracts worth a total of $436.7 million. Countries where projects were implemented Contracts for projects implemented in China amounted to only 19.5% of the total funding won by Chinese suppliers — $361 million for 61 contracts. Pakistan, Bangladesh, and the Democratic Republic of Congo were the top countries where Chinese contractors won awards — specifically in energy infrastructure, urban resilience, and water supply. Among the bank's top 25 borrowers, China had the most contracts awarded locally with 96.8%. Top Chinese contractors in 2020 The World Bank hired a total of 139 Chinese organizations in 2020. The top 10 Chinese contractors received a total of $1 billion for 34 contracts, amounting to almost 59% of the total contract value awarded to Chinese organizations. The contracts ranged from $30 million to over $200 million. In the list below, individual contractors and joint ventures between Chinese and foreign contractors are not included. 1. Sinohydro Headquarters: Beijing, China Number of contracts won in 2020: 15 Total value of contracts: $222,148,434 Sinohydro is a state-owned company with an interest in construction and engineering. It was the top-awarded supplier for international projects, both in terms of number and total contract value. Among these, the highest value contracts were two civil works awards under the Odra-Vistula Flood Management Project in Poland, worth $36.7 million and $25.3 million each. Other contracts won by the company worth $160.1 million were in Uzbekistan, Malawi, Mozambique, Georgia, Tajikistan, Zambia, the Democratic Republic of Congo, and Gabon. 2. Powerchina Zhongnan Engineering Corporation Limited & GE Hydro China Headquarters: Changsha, China & Tianjin, China Number of contracts won in 2020: 1 Total value of contracts: $243,987,283 The consortium between Powerchina Zhongnan Engineering Corporation Limited, a state-owned company working on water and electricity, and GE Hydro, the hydroelectricity generation division of GE Renewable Energy, won the biggest contract the World Bank awarded in 2020. The consortium won $244 million for the design, supply, and installation of turbines and generators related to the Dasu Hydropower Stage I Project in Pakistan, which will provide clean energy through hydropower generation. 3. TBEA Co., Ltd. Headquarters: Changji, China Number of contracts won in 2020: 2 Total value of contracts: $104,810,067.30 Both contracts won by TBEA were outside China, with the biggest worth $104 million for civil works in Bangladesh related to the Enhancement and Strengthening of Power Transmission Network in Eastern Region Project. The other contract worth $810,067 was for the electrification of localities in Cote d'Ivoire. The company has been active in providing green technology to more than 70 countries, offering services that range from design to construction and installation. 4. China Gezhouba Group Company Limited Headquarters: Wuhan, China Number of contracts won in 2020: 4 Total value of contracts: $81,079,343 The state-owned China Gezhouba Group Company Limited works on design and construction in different areas such as water conservancy and hydropower. In 2020, it was awarded 339 million CNY ($51.8 million) for civil works under the Hubei Inland Waterway Improvement Project, which will cover the installation of metal structures at the left bank of the Yakou Navigation Complex. The other three contracts awarded to it were civil works for flood management in Nigeria, solar energy access in Niger, and water supply and sanitation in Ethiopia. 5. Hubei Changjiang Road & Bridge Co., Ltd. Headquarters: Hubei, China Number of contracts won in 2020: 1 Total value of contracts: $68,577,776 The $68.6 million civil works contract for improving and maintaining national roads from Sikeut to Phonhong in Laos was the first major award from the bank the engineering company has won in the last four years. The contract is under the Lao National Road 13 Improvement and Maintenance Project, which aims to improve the overall condition and safety of the national roads in the region. 6. Weihai International Economic ＆Technical Cooperative Co., Ltd. Headquarters: Shandong Province, China Number of contracts won in 2020: 1 Total value of contracts: $59,415,800 WIETC is an international engineering and construction firm with vast experience. It has a major presence in the Democratic Republic of Congo and a substantial part of this is due to the urban water supply project. In 2020, it was awarded $59 million under the same project for the industrial treatment of drinking water in Kinshasa. 7. China Road and Bridge Corporation Headquarters: Beijing, China Number of contracts won in 2020: 3 Total value of contracts: $46,600,172 CRBC is a subsidiary of the China Communications Construction Company Ltd., specializing in roads, ports, railways, water, tunnels, airports, and other civil engineering projects. In 2020, 2 out of 3 awarded contracts were based in Africa: a $31.9 million underground drainage construction for the erosion and watershed management project in Nigeria and a $2.6 million road development in Rwanda. The remaining contract was in Tajikistan for a 117 million Tajikistani somoni ($12 million) for the construction of bridges in the Darvaz and Rushan districts. 8. China National Electric Engineering Co., Ltd. Headquarters: Beijing, China Number of contracts won in 2020: 1 Total value of contracts: $41,671,891 Under the Enhancement and Strengthening of Power Transmission Network in Eastern Region Project in Bangladesh, CNEEC was awarded $41.7 million together with TBEA Co, ltd. CNEEC claims to be one of the largest state-owned one-stop engineering companies. In October 2020, it was given an 18-month sanction with conditional non-debarment — which means the company is still eligible to implement projects under a settlement agreement — due to “fraudulent practices” as stated by the World Bank. 9. Xinxing Ductile Iron Pipes Co., Ltd. Headquarters: Hebei Province, China Number of contracts won in 2020: 5 Total value of contracts: $34,775,634 Xinxing Ductile Iron Pipes Co., Ltd. was the only top contractor in 2020 with all awarded contracts based in China. All five contracts won were under the Jiangxi Integrated Rural and Urban Water Supply and Wastewater Management Project. Xinxing Ductile Iron Pipes is a leading manufacturer and seller of iron and steel products. The manufacturing company is heavily involved in water, electricity, and energy industries. 10. China Gansu International Corporation for Economic and Technical Cooperation Headquarters: Gansu, China, and Minsk, Belarus Number of contracts won in 2020: 1 Total value of contracts: $30,692,130 Together with the consortium between Powerchina Zhongnan Engineering Corporation Limited and GE Hydro, CGICOP won a contract worth $30.7 million under the Dasu Hydropower Stage project. 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