By TesfaNews,
The increasingly assertive Chinese investment group in Eritrea, SFECO Group, announced that it has signed a Mechanical and Electrical Installation contract with Shanghai Installation Group in order to finalize the three massive agricultural projects it currently undertake in Eritrea.
According to SFECO Group, it is for the first time to enter into a cooperation agreement with Shanghai Installation Group to execute any of its overseas projects.
“This cooperation is the innovation for the division of work between contractor and subcontractor, and created a new working mode between affiliated companies. It is a milestone for development of international engineering project relying on the integrated advantages (management, technology and resource) of SFECO China Group,” reads the company’s press release.
According to the agreement, Shanghai Installation Group will be authorized as the sole sub-contractor for all mechanical and electrical installation works in the three agricultural projects.
Africa Intelligence recently reports that China SFECO Group has already orders worth US$340m on its Eritrea book.
Earlier this year, SFECO also disclosed it has won a massive Engineering, Procurement and Construction project worth US$100m that constitute the construction of three cold food storages; an aluminum can manufacturing plant, and a high quality PVC agriculture drip irrigation pipe production line in Eritrea.
SFECO Group’s extensive investment drives in the country starts soon after it acquires the Zara gold project from an Australian Mining Company at a price tag of US$114m last year followed by its successful bid for the US$161.54m Equipment Procurement Logistic Contract. It also won the multi-million Hirgigo Power plant extension project that the company says will be completed by the end of this month.
China is by far the biggest trading partner to Eritrea. With the growing number of new Chinese energy and natural resource exploration companies in the country, the existing relation and cooperation in trade, investment and development would show a further growth in the coming years.
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