The increasingly aggressive Chinese investment group in Eritrea, SFECO, again won the second phase of supplying various machinery and equipment worth 61.54 million USD.
It also won another multi-million dollar EPC contract for Hirgigo Power Plant 2*23MW Extension project.
Eritrea’s ambassador to China, Mr. Tsegai Tesfazion and Vice-President of China SFECO Group, Mr. Zheng Yufeng signed the contract last week, in Beijing on behalf of the two sides.
Hirgigo Diesel Power Plant is located 5 km southwest of Massawa.
Last year, SFECO Group won a 100 million USD contract, the “Eritrea Equipment Procurement Logistic Contract”, that aims to boost the new economic development drive through the fields of mining, agriculture, transport, and infrastructure.
The various types of machinery that include excavators, motor graders, rollers, loaders, cranes, pumps, tractors, and some other construction and agricultural equipment were provided by Liu Gong, XCMG, SANY Heavy Industry and some other large Chinese domestic enterprises.
The group’s business and investment scope in Eritrea has gradually expanded after SFECO purchased 60% of Chalice Gold Mines’ (ASX: CHN; TSX: CXN) share at the Zara Gold Mining project at a total cost of 100 million USD. The Eritrean government through the Eritrean National Mining Corporation (ENAMCO) owns the remaining 40%.
The cordial business relationship between the state of Eritrea and SFECO Group started after President of Eritrea, Isaias Afwerki, invited Mr. Tong Jisheng, Vice-President of Shanghai Construction Group and the President of SFECO, to his state palace in Asmara, sometime last year. After following intently to president Tong’s company profile presentation, President Isaias on his part elaborates thoroughly Eritrea’s new national infrastructure development plan.
Since then, the Chinese company started to invest massively in different infrastructure and natural resources development sectors in the country.