Which Chinese companies are the big development players?

CANBERRA — More than 30,000 development contracts have been awarded since 2015, providing more than $185 billion in support to developing countries. Of this total, $8.7 billion have been awarded to more than 800 companies headquartered in China. By analyzing the development contracts, Devex presents an exclusive look at China’s biggest development players, their global footprint, and the donors supporting their work. Who are China’s big development players? Major infrastructure, energy and engineering projects dominate the development contracts awarded to Chinese-headquartered companies since 2015. The top five companies based on the total value of contracts are all engineering focused and state owned. Combined, these companies have won contracts valued at nearly $2.5 billion since 2015. Here are the top five. 1. China Gezhouba Group From just six contracts, the China Gezhouba Group has been the biggest development player in China since 2015, being awarded development contracts to the value of $942 million. Supporting the design, construction, investment, and operation of large energy, transportation, and other construction projects, with a corporate mission statement to promote social progress and improve living standards, the footprint of the China Gezhouba Group can be found on every continent excluding North America. In the development sector, they have been contracted by the World Bank and Asian Development Bank, with development activities based in Pakistan and China. Their single biggest contract, awarded in March 2017, was a $617 million project for the World Bank to support the construction of underground power complexed, tunnels and hydraulic steel structures in Pakistan. 2. Sinohydro Second on the list by value of contracts is Sinohydro, a company providing end-to-end services for large infrastructure and civil works projects with the mission “building a sustainable future.” With regional offices in Côte d'Ivoire, Georgia, Pakistan, Sudan, and Venezuela, Sinohydro have positioned themselves as an important player in supporting major infrastructure projects in developing countries — and they have been awarded with 23 contracts worth $700 million since 2015, the highest number of contracts for a company headquartered in China. The source of development funding for Sinohydro has been the leading development banks — the ADB, African Development Bank, European Investment Bank, Inter-American Development Bank and World Bank. Their single largest project awarded in the past three years was an $89 million project supporting the reconstruction and improvement of a major road in Armenia for the EIB. 3. China Civil Engineering Construction Corporation The China Civil Engineering Construction Corporation has been supporting development projects since the 1960s. Since 2015, this engineering company has supported 16 projects valued at $307 million — the largest, a $144 million hydropower project in Dasu, Pakistan, for the World Bank. Other donors include the AfDB, ADB and European Bank for Reconstruction and Development. And in addition to Pakistan, CECC have supported infrastructure and other construction projects in Botswana, Montenegro, Sri Lanka, Tanzania, Tonga, and Vanuatu. 4. China Road and Bridge Corporation The state-owned China Road and Bridge Corporation specializes in the contracting, investment, development, and operation of large transportation, real estate, and industrial projects. Since 2015, they have been awarded four major development contracts — totalling $278 million. The largest of the four projects, valued at $205 million, was for the reconstruction of 178 kilometers of road in Afghanistan for the ABD. The ADB has additionally employed the CRBC for projects in Myanmar while the AfDB has utilized their services to support projects in Africa. 5. Xinjiang Beixin Road and Bridge Engineering Company Ltd. The Xinjiang Beixin Road and Bridge Engineering Company is state owned and focused purely on the construction of roads and bridges. Since 2015, they have been awarded 14 contracts supporting development projects — totalling $222 million. Their largest projects, awarded in September 2016, was a $41 million project supporting the construction of a major motorway in Pakistan awarded by the ADB. The World Bank has been their other major donor over the past three years with Cambodia, China, and Tajikistan as other locations of infrastructure projects supported by the company. Spreading the wealth While the top five account for more than a quarter of contracts awarded to Chinese-headquartered companies since 2015, Devex have identified more than 800 companies involved in development projects. More than three-quarters of companies were recipients of single development contracts over the past three years, suggesting Chinese-headquartered companies — big and small — are considering development-focused contracts as a means of progressing and advancing business opportunities. What are the locations of projects? According to the analysis, more than two-thirds of contracts were for projects based in China — and not just engineering projects. The diverse range of projects include a lake rehabilitation project, ecological restoration project, the provision of visibility equipment supporting humanitarian responses, a project supporting the advancement of religious freedoms, and economic transformation and capacity building. Outside of their own borders, Chinese-headquartered companies have supported projects in 64 countries topped by Pakistan, Bangladesh, Kenya, Papua New Guinea, Nepal, Sri Lanka, and Vietnam. Outside of China, development projects are dominated by transportation, energy and other construction projects — with some interesting exceptions. In Bangladesh, YTO International supplied $851,000 worth of mobile rehabilitation vans for the World Bank. In Guyana, Beijing DHC Digital Technology Company won a $406,000 contract to improve teacher education. In Uzbekistan, Xinjiang Ramadan International Trade supported a $2.6 million health systems improvement project. Within Asia, the Chinese Association on Tobacco Control were awarded $500,000 to support the establishment of a tobacco control and health fund. And at the lower end of contract values, the China Tianjin Recare Company were awarded just under $8,000 for the supply of Hepatitis B and C rapid tests kits to Myanmar. Who are the donors? There have been thirteen donors employing the services of Chinese-headquartered companies since 2015 to assist their development programs. Topping the list of donors is the ADB — the primary source of funding for Chinese companies, accounting for 66 percent of all contracts awarded to them since 2015. The ADB is followed by the World Bank who have awarded 304 contracts, or 23 percent and the AfDB with 3 percent of contracts. But the diverse donors also include the Australia’s Department of Foreign Affairs and Trade, Bill & Melinda Gates Foundation, Canada’s Department of Foreign Affairs, Trade and Development, EIB, Ford Foundation, IADB, Rockefeller Brothers Fund, and the United Nations. The big names missing over the past three years have been the United States Agency for International Development, Department for International Development, the German Society for International Cooperation and other major national aid programs. What can we expect in 2018? In 2018, we expect there will be a continuation of Chinese-headquartered companies receiving major engineering contracts from development banks — primarily the ADB and World Bank. But the growing push for China to be a leader in environmental protection could see some Chinese companies — especially state-owned companies — shying away from bidding for large-scale projects that could be perceived as promoting dirty energy solutions. Clean energy projects would more likely dominate their services, showing China as an important leader in creating an environmentally sustainable future. In demonstrating their development leadership, Chinese-based research organizations and universities may increasingly bid for development grants. Beijing Normal University, China Agricultural University, Harbin Medical University, Peking University and Tsinghua University are among the research institutes already successful in receiving grants from the Gates Foundation, Ford Foundation, and Rockefeller Brothers Fund since 2015. More applications, and more successes, could help Chinese institutes to become leading thinkers on development solutions. Interact with our data on Chinese-headquartered companies and discover more details using our Devex produced Tableau interactive.