Chinese Mandarin - Chinese firms to build?Polish expressways

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BIZCHINA / Center

Chinese firms to build?Polish expressways

By Lu Haoting (China Daily)
Updated: 2007-09-12 10:46

Nearly 40 private Chinese companies, led by China International Industry
and Commerce Co Ltd (CIIC), are likely to build expressways worth 20
billion euros in Poland as the Eastern European country modernizes its
infrastructure.

CIIC, a leading real estate company in Beijing, yesterday signed a letter
of intent for cooperation with the Polish Ministry of Transport to
participate in Poland's road transport modernization.

Poland is carrying out a massive campaign to improve its poor road
transport system. It will build 1,700 kms of road and 2,500 kms of
expressway in seven years.

On behalf of our government, I sincerely send out my invitation to
Chinese enterprises and hope China would participate in this
modernization campaign," Jerzy Polaczek, Poland's minister of transport,
said at the signing ceremony. "We hope our business partnership agreement
will take effect very soon."

CIIC plans to set up a joint venture company with other Chinese private
firms to participate in the expressway projects in Poland, said Wang
Tianyi, CIIC's president.

"About 38 companies have expressed interest in joining us," Wang said.

Poland's road transport system modernization is mainly funded by the
European Union and the Polish government. The EU will increase its aid to
Poland from 2 percent of the country's gross domestic product to 4
percent between 2007 and 2013, according to Euromonitor International.
The funds are part of the EU Structural and Cohesion Funds aimed at
improving transport infrastructure, regional development, education and
environment.

Founded in 1988, CIIC has total assets of 9.8 billion yuan (US$1.3
billion). Its business covers real estate development, property
management, hotels, industrial park development and information security
management. It wholly owns the five-star Presidential Plaza Hotel in
western Beijing.

CIIC is also making forays into other Eastern European countries. It
signed a letter of intent on Monday to build a 40-story commercial
building in Romania, one of the tallest structures in Eastern Europe.

Bilateral trade between China and Poland reached US$4.67 billion in 2006,
rising 48.2 percent over the previous year, according to figures from the
Chinese Ministry of Commerce.

(For more biz stories, please visit Industry Updates)

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