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| Friday, October 10, 2008 20:59:30 |
Public-work projects lure foreign companies
With China expecting to spend at least 400 billion US dollars overall through 2010 on public-works projects, global companies are aiming to tap an Olympics-related building boom to bolster business in the country of 1.3 billion people. General Electric Co., Siemens AG and United Technologies Corp. are just some of the companies that view the Olympics as a great chance to forge new relationships with major Chinese business and government figures, The Wall Street Journal reported.
For the 2008 Summer Olympic Games, Beijing expects to spend almost $40 billion on new stadiums, subways and a new airport terminal. That's more than three times Athens' estimated 12 billion US dollars infrastructure tab for its 2004 Olympics. Shanghai, meanwhile, is expected to spend about 41 billion US dollars to prepare for the 2010 World Expo, while Guangzhou plans to spend about 27 billion US dollars for the 2010 Asian Games.
GE, for example, is targeting about $1 billion in Olympics-related contracts to provide everything from lighting and security at stadiums to electrical equipment at subway stations and treatment systems at waste-water facilities. But non-Chinese companies face hurdles: Many Olympic-related projects such as sports stadiums are being built by private and state-owned enterprises, making the bidding process nearly as competitive as the Games themselves.
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