Angola's major building block

Chinese construction firm helps establish satellite city near nation's capital

Since Angola's civil war ended in 2002, Africa's second-biggest oil producer has surged economically, with a 5.1 percent growth rate in 2013.

The capital, Luanda, has made great efforts to rebuild the nation's infrastructure - dubbed by its leaders as the "national reconstruction" - with new roads, railways, schools and hospitals that have cost tens of billions of dollars.

With its abundance of resources that include crude oil, diamonds and gold, the southern African nation has seen scores of state-owned enterprises and private companies from China and other countries enter its borders hoping for an economic opportunity.

In 2008, CITIC Construction Co, a state-owned enterprise and one of the largest construction companies in the world, began work to assist the nation's reconstruction efforts.

"We are an active and responsible player in the country's post-war reconstruction process," says Liu Guigen, president of the African regional division of CITIC Construction Co, a division of China International Trust and Investment Corp.

That year, the company won a bid to build housing in Kilamba Kiaxi, one of Luanda's six urban districts that is located 30 kilometers from the capital.

It would eventually transform the rural area into a satellite city, a smaller residential area located near a metropolis that is somewhat independent economically.

After CITIC completed the first phase of the project in 2011, the development spanned an area of 88,000 square kilometers. It is reportedly one of the largest newly built projects on the continent.

Last year, the $10 billion project was completed with a total of 20,000 residential homes, 200 retail stores, 24 kindergartens, nine primary schools and eight middle schools. CITIC claims 90 percent of the homes are already inhabited.

Angola President Jose Eduardo dos Santos hailed the satellite city project as a model for Angola's post-war reconstruction.

CITIC Construction, which was tasked with mapping out the satellite city's overall development strategy, worked with about 40 other large enterprises from China to install water, sewage and electricity systems.

The companies then set up a 300-member team to train Angolans to maintain the systems and provide security for neighborhoods.

"The (training) services are critical to create and sustain our good business image," Liu says.

He adds that CITIC evaluated the Chinese companies to ensure that their products and services were of the highest quality.

Backed by the success in Kilamba Kiaxi, the company is now working with other Angolan cities to construct similar housing projects. It is also exploring opportunities in the nation's farming sector to help reduce Angola's dependence on food imports to feed its population of 18 million.

"Angola has so much fertile land available, but it is also a large importer of foods," Liu says. "Having farms in Angola can reduce its costs of importing foods. We have introduced a farming business model that plants mostly maize, soy and wheat to help rebuild the country's agricultural system."

The company says it has developed two 10,000-hectare farms in Angola and will invest $5 billion in a 500,000-hectare farm in 2015.

The investment in agriculture could help the Angolan government become less reliant on its oil industry and improve its food security. CITIC, which says it has a principle of "morality before profit", says its investments have gained the support of Angolan farmers.

The company has also invested heavily in the country's school system. In May 2014, the CITIC BN Vocational School was founded in Luanda to provide free vocational training for impoverished city youths from the ages of 16 and 25. The students learn skills in electrical and mechanical engineering and eventually are recruited by CITIC.

CITIC Construction is also a sponsor for the Confucius Institute at Agostinho Neto University in Luanda and has sponsored table tennis and beach volleyball events in the country.

Since 1999, when China encouraged its state-owned companies to invest overseas, CITIC Construction has conducted almost 95 percent of its work abroad. It says that 60 percent of its business is in the African market.

"With Angola as a foundation, we are confident that we will expand projects across Africa in 2016," Liu says.

CITIC Construction plans to kick off new projects in Kenya and Cameroon at the end of this year.

lijing2009@chinadaily.com.cn