Shandong on rise

Updated: 2015-03-23 06:35

By Yang Yao in Beijing(China Daily Latin America)

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Enterprises from Shandong Province in East China have grown this year, largely on foreign contracted projects, the Shandong Business Daily reported on March 19.

From January to February, the volume of contracts with Africa and Latin America have increased by 166.8 percent and have grown by 72.5 times compared to the same period last year, according to the province's Department of Commerce.

In the Brazilian electricity franchise bidding on Nov 28, 2014, Brazilian company Tractebel Energia got a 340 megawatt coal-fired power plant project, which is contracted to be built by Shandong Electric Power Engineering Consulting Institute. This is the biggest coal-fired power plant that Tractebel Energia has invested in Brazil and also the first time it cooperated with Chinese contractors. However, it is the second coal-fired power plant project that the Shandong institute has done in Brazil.

A report by the American Council on Renewable Energy said that the demand for power in the Latin American-Caribbean (LAC) area will double in 2020 and triple in 2050.

Energy shortage is a bottleneck. Take Ecuador for example, the country has been short of electricity for a long time and it needs to spend over $2 million to purchase power.

It is urgent for LAC countries to find ways to meet their energy demand, the report said.

International contracts have become a highlight for Shandong province. From January to February, Shandong companies have signed overseas contracts with a total volume of $2.26 billion, with the turnover of $1.51 billion, increased by 81.1 percent and 0.2 percent compared with the same period last year.

There are 25 newly signed contracts, with a volume of $1.91 billion, increased by 47.1 percent and 61.9 percent. Contracts signed with African and Latin American companies worth $920 million and $930 million, respectively. Among them, $590 million are in the Brazilian market, grown by 46 times compared to last year, becoming the largest market for new contracts.

The report said that beside the Brazilian coal-fired power plant, there are other contracts such as a road upgrade in South Sudan contracted by Shandong Express, Angola national logistics center by China National Heavy Duty Truck Group, projects worth a total of over $200 million.

Zhao Changzeng, analyst with China Import and Export Bank was reported as saying that it is actually easy to control risks in these countries.

“The restriction of investment is limited, almost all the industries and areas can be entered,” he was quoted as saying.