Energy China in Latin America

By staff reporter DANG XIAOFEI

CHINA has built the worlds largest hydropower facility， the Three Gorges Hydroelectric Power Station. Now， the countrys hydropower enterprises， with their advanced technologies and rich construction experience， are flexing their muscles internationally. Their reach encompasses Latin America， where theyre helping local firms generate clean energy.

The China Energy Engineering Group， better known as Energy China， is the bellwether of Chinas hydropower-engineering exports to Latin America. The group sealed a deal with Argentina last year to construct the countrys two largest hydropower stations， the largest hydropowerengineering project a Chinese company has ever contracted overseas.

Prioritizing Latin American Market

In 2010， Energy China entered the Latin American market by undertaking a flood-control project in Ecuador， which would benefit some 100，000 people. The system， which was formally put into operation in April， has helped prevent catastrophic floods in the lower basin of the Guayas River， the most serious in the past half-century.

“The Ecuadorian government and people have spoken highly of our construction project and praised the Chinese peoples diligence， honesty， dependability， and sense of responsibility， as well as our efficiency and excellent techniques，” said Zhang Jianxin， quality control director of China Gezhouba Group Corporation （CGGC） under Energy China， who was responsible for the project.

What came next was CGGCs work on Ecuadors second largest hydropower project， the Sopladora Hydropower Station， which would have an installed capacity of 4.87 gigawatts. Construction broke ground in April 2011， and the power station is expected to start operating at the end of this year.

Energy China also has a presence in Columbia， Chile and Peru， where it has set up eight branches and signed at least 20 engineering projects worth US $8 billion. These projects involve not only hydropower but water conservation， agricultural development， as well as power transmission and transformation.

Of course， the largest hydropower projects that Chinese companies have ever contracted in the region are Argentinas Nestor Kirchner Hydropower Station （114 gigawatts） and Jorge Saipan Nick Hydropower Station （60 gigawatts）， with a total value of US $4.6 billion. It will be built by CGGC in collaboration with Argentinas Electroingenieria（Eling）.

In Venezuela， meanwhile， Energy China took on in 2009 a comprehensive agricultural project， the Apure Shipping System. The system， which was put into operation in 2012， has solved the problem of flooding in the State of Apure and benefited local agricultural and fishery production.

A World Leader

Despite Chinas impressive achievements in the hydropower field –construction of hydropower stations around the world， its top hydropower techniques and equipment – most Latin American countries still have a higher regard for European technological standards than Chinese ones. Zhang Jianxin， the quality control director of CGGC， said that European and American systems emphasize a holistic standard for a project， while Chinese companies lay particular stress on every product. In addition， the two types of systems follow different construction procedures.

“Little by little， weve been building the reputation of Chinese enterprises and trying to project a more credible and responsible image overseas，” Zhang said.

Energy China also has several important power transmission and transformation projects in Venezuela. Last year， the engineering group contracted a project on the countrys Midwest power grid， which included building two transformer substations， renovating six transformer substations and setting up transmission lines that would run more than 100 km. The power transmission project is expected to greatly contribute to the stability of the countrys Midwest power grid and in turn， improve local livelihood.

“Energy China has put a premium on the Latin American market， which is among the key regions in the groups international strategy，” Zhang said.“We plan to expand our presence by contracting more hydropower projects in countries such as Argentina， Chile， Peru， Columbia and Venezuela， since these countries feature quite low on the hydropower development scale yet have increasing demands for clean energy.”

The level of hydropower development in Europe today stands at 47 percent， and 38 percent in North America， but that of South America is only 24 percent. The president of the International Hydropower Association， Ken Adams， holds that the world now recognizes the need to develop hydropower.

Meet Multiple Local Needs

“Latin Americans welcome Chinese hydropower companies since they not only bring clean energy but also provide job opportunities to locals，” Zhang said.“Of Energy Chinas 3，000 employees at the Sopladora Hydropower Station project in Ecuador， 2，200 are Ecuadorians.”A local managerial staffs annual salary amounts to RMB 100，000-200，000， which is high even by Chinese standards， he said.

Energy China provides its Ecuador- ian employees with additional support， such as free shuttle-bus service from construction sites to Cuenca and four canteens that feature a buffet breakfast with milk， fruit， cheese， bread and pastries. It has built a church for its Christian employees， as well as entertainment and exercise venues that have tennis， volleyball and basketball courts. Employees quarters are equipped with laundry rooms where everyone can use automatic washing machines for free.

Whats worth mentioning， Zhang said， is that Energy China has many local female employees in Ecuador， including many on its management team. “We treat both Chinese and Ecuadorian managers equally， so Ecuadorian employees have remarked that Chinese people value equality and fairness without any prejudice against locals.”

Environmental protection has also become a big consideration. “Our construction site here is even better than sites in China，” Zhang said. “Flowers and shrubs， which are tended to by local employees， line both sides of our roads. The site is well-organized and clean. Garbage bins are placed everywhere， and waste is segregated.

China Energy not only carries out engineering projects and provides loans to other countries； it also promotes local industrial development and trains local engineers and technicians. The group helps Latin American hydropower firms advance by passing on expertise and providing collaborative opportunities. Some young engineers and college graduates， with the recommendation of their companies， have the opportunity to work for Energy China projects and thus gain valuable experience. In Ecuador， the group subcontracts some of its projects to local firms. And once its projects are done， it leaves their maintenance and operation to the locals.

Latin Americans， including nongovernment organizations， hail Chinese hydropower enterprises business practices. They say that Chinese enterprises， with their technological know-how， have helped many Latin American countries gain access to clean energy.