Daewoo E&C Wins $200 Million Contract for 'Hong Kong Panling Bypass Road' Construction

[Asia Economy Reporter Yoo In-ho] Daewoo E&C announced on the 4th that it has won the $218 million (260 billion KRW) contract for the 'Fanling Bypass Eastern Section' construction project in the New Territories area of northern Hong Kong.

The project, commissioned by the Hong Kong Civil Engineering & Development Department, involves constructing a bypass road connecting the newly developed Fanling New Town and the existing highway to address Hong Kong's chronic housing issues.

The project includes building a total of three packages, with this being the second package, consisting of a 990m elevated road, a 490m underground road, connecting existing roads, and soundproof walls for a four-lane road in both directions.

Daewoo E&C holds a 48% stake, while local top-tier construction companies Chunwoo Construction and Kwan Lee hold 52% in a joint venture, with a total construction period of 59 months.

This contract is significant as it marks Daewoo E&C's first entry into the Hong Kong construction market, which is known for its high entry barriers.

Alongside Singapore, Hong Kong is one of the world's largest infrastructure construction markets. The Hong Kong government continuously invests over 26 trillion KRW annually in infrastructure projects to expand the city's scale. In fact, starting this year, approximately 37 projects including large-scale reclamation, tunnel construction, subway (MTR) construction, and bridge construction, worth $66 billion, are scheduled to be commissioned in Hong Kong.

However, obtaining construction licenses is difficult, and foreign construction companies without licenses cannot bid unless they form joint ventures with local top-tier construction companies, making it a market with high entry barriers.

Daewoo E&C plans to successfully carry out this road construction project to build trust with the client and establish strategic partnerships with local construction companies to strengthen its position in the Hong Kong construction market.

A Daewoo E&C official stated, “Our alternative design, which improved constructability according to site conditions and offered excellent technical skills and price competitiveness, received favorable evaluations from the client. The friendly cooperative relationship with local construction companies and our abundant domestic and international road construction experience greatly contributed to winning the contract.”

This content was produced with the assistance of AI translation services.