China State Construction International Holdings (CSCI) has signed agreements with two companies involving billions of dollars of potential tenders for mainland contracts.
CSCI, one of Hong Kong's largest contractors, entered the mainland market in 2008 and started investing in infrastructure projects in 2009.
CSCI will invite China State Construction Engineering (CSCEC), a Shanghai-listed state-owned enterprise that is China's largest building contractor, to bid to work on mainland projects of CSCI's worth HK$43 billion between now and 2014.
'CSCEC has substantial experience in construction,' said CSCI's announcement. 'The agreement provides CSCI the option to engage CSCEC as contractors for CSCI's construction works. [This will] benefit CSCI by leveraging the substantial experience of CSCEC.'
The invitation includes HK$13 billion of contracts that CSCI may ask CSCEC to bid for in November and December, given that CSCI has won several mainland projects recently.
Meanwhile, China Overseas Holdings, which CSCI span off from in 2005, and which is a subsidiary of CSCEC, will invite CSCI to tender for housing and infrastructure projects worth 20 billion yuan (HK$2.44 billion) between now and 2014.