Industry Trend Analysis - Dependence On Chinese Contractors Harbours Risks For Zimbabwe And Pakistan - FEB 2017


BMI View: Chinese companies will continue to expand their international exposure with heavy go vernment encouragement to grow their global footprint . In an effort to build reputation, expand influence and secure access to natural resources, we expect China to continue to grow its prominent position in the global energy and infrastructure landscape.

Using data from our Key Projects Database - an infrastructure projects database containing 20,000 projects at planning, construction and early completion around the world- we have identified the markets where Chinese contractors have a significant presence in the infrastructure projects pipeline.

Russia accounts for the largest value of projects that Chinese contractors are involved in globally, with USD80.5bn worth of projects having Chinese contractors involvement. However, due to the sizable scale of the Russia infrastructure projects pipeline, this represents a third of the total value of Russian projects and 13% of the number of projects. Therefore, while this is the largest market for Chinese contractors in terms of value, Russia is not as depended on Chinese contractors (and the project financing arrangements that usually accompanies their involvement) as other markets. The market whose project pipeline is most heavily dependent on Chinese contractors is Zimbabwe. While the value of projects Chinese companies are involved in is towards the middle range at USD21.4bn, this represents 85% of total projects value and 56% of the number of projects logged for Zimbabwe in our database. We identify a similar high dependence in Pakistan where Chinese contractors account for 70% of the total value of projects logged in our Key Projects Database.

China Going Global - Infrastructure Projects Footprint
Markets With The Largest Presence Of Chinese Contractors In Their Infrastructure Projects (Planned and Under Construction)
Source: BMI Key Projects Database

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