Power Construction Corp of China Ltd Secures Major Water Infrastructure Contract in South Africa

In a significant development for the construction and engineering sector, Power Construction Corporation of China, Ltd (601669), a leading industrial company specializing in electric utility line construction services, has announced a major contract win in South Africa. On August 11, 2025, the company’s subsidiary, China Water and Hydropower Construction International Engineering Co., Ltd, along with South African partner Entsika, signed a contract with the South African Cross-Caledon Tunnel Authority. The contract, valued at approximately 6.95 billion yuan (approximately 69.94 billion yuan), involves the expansion of the Mokolo-Crocodile River (West) Water Supply Project Phase 2.

Project Overview

The project, located in the northern province of Limpopo, South Africa, is a large-scale water conveyance initiative. It includes the construction of a dam, water intake structures, pump stations, and a water supply pipeline. The design aims for an annual water conveyance capacity of 7.5 million cubic meters, with a pipeline extending approximately 142 kilometers. The construction period is estimated at 48 months.

Strategic Implications

This contract underscores Power Construction Corp’s expanding footprint in international markets, particularly in critical infrastructure projects. The company, headquartered in Beijing, has a strong track record in hydropower engineering, water works engineering, and thermal power engineering, among other sectors. This new project aligns with its strategic focus on developing and constructing essential infrastructure globally.

Financial Context

As of August 7, 2025, Power Construction Corp’s stock closed at 6.45 yuan on the Shanghai Stock Exchange, with a market capitalization of approximately 117.65 billion yuan. The company’s price-to-earnings ratio stands at 11.06, reflecting investor confidence in its growth prospects. The recent contract win is likely to bolster its financial performance and market position.

Global Expansion and Expertise

Power Construction Corp’s ability to secure such a significant contract in South Africa highlights its expertise in managing complex engineering projects in diverse geographical and environmental conditions. The company’s involvement in high-altitude projects in Tibet, as noted in its collaboration with China Construction (601669), further demonstrates its capability to handle challenging terrains and climates.

Conclusion

This contract not only represents a substantial financial milestone for Power Construction Corp but also reinforces its reputation as a global leader in construction and engineering. As the company continues to expand its international presence, it is well-positioned to capitalize on emerging opportunities in the global infrastructure sector.