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Construction companies 'must offer funding services'

By ZHOU WA in Leipzig | chinadaily.com.cn | Updated: 2013-05-31 17:24

Chinese companies involved in infrastructure construction that want to do business overseas should offer funding services, Zhou Jichang, former chairman of the China Communications Construction Company told China Daily during the International Transport Forum in Leipzig, Germany.

"Chinese construction companies should try to raise funds by themselves and allocate resources around the world," Zhou said.

"The companies should try to offer a comprehensive service package, including planning, funding, construction and operation, when they do business overseas," he added.

The CCCC, which was led by Zhou until January, has been exploring ways to offer such services.

In 2012, the CCCC and the Jamaican government signed a franchise agreement on the South-North Highway in Kingston, Jamaica. This marked a major step in infrastructure franchise investment.

According to the agreement, the CCCC must provide information on the financing options, source of funding and terms and conditions for each infrastructure development project proposed.

During the ITF, 54 transport ministers called for more attention to the issue of funding.

"With investment in transport infrastructure a long-term venture, robust, credible funding solutions that support trade, economic growth and environmental and social sustainability are urgently needed," ministers said in a declaration.

"With both public budgets and private sector resources under constraint, government authorities and industry must together seek new ways of ensuring stable, long-term funding for the sector."

Transport ministers around the world are exploring new ways to attract more private capital to fund transportation infrastructure projects, not only in developing countries, but also in developed countries.

The challenge of funding transportation can also offer opportunities for those Chinese transport construction companies with better financial solutions, the ITF Secretary-General José Viegas told China Daily.

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