Foreign Contract Engineering Chamber of Commerce statistics China-enterprise Libya loss planning claim

Jiang regional political risks test the urgent "going out" of Chinese investors.　　Contracts worth tens of billions of of yuan were almost all forced to shut down because of the unrest in Libya.　　With the end of the evacuation work, the issue of asset safety will become the next issue for Chinese companies.　　This reporter learned that the foreign contracted engineering Chamber of Commerce has started in Libya, the damage statistics of Chinese enterprises, and immediately convened a meeting to guide member enterprises to deal with unrest in the Middle East.　　Sudden unrest and a number of uncertain business losses to the Chinese enterprises in the non-gold-mining a lesson, the industry to reflect on the past rely on experience to go out of the model facing challenges, the future enterprises need to strengthen the feasibility of the investigation, pay special attention to political unrest factors.　　The Chamber spokesman Ms Zhang told our correspondent that "risk control" will become one of the key words of China's outsourcing project in the 2011. Political unrest drags on commercial cooperation listed companies ' announcement warning with the withdrawal of the overseas Chinese enterprises in Libya's interests and recovery into people's eyes.　　According to data released by the Ministry of Commerce, there are 75 investment and cooperation enterprises in Libya and 50 projects in China.　　Since yesterday, several large listed companies have issued announcements to warn shareholders about the damage to their interests in Libya.　　March 2, China Railway announced the Libyan project situation announced that the total contract for the Libyan project is 4.237 billion U.S. dollars (about 27.8 billion yuan), the current all projects are closed down, the outstanding contract amount of 3.551 billion U.S. dollars. The company in the local original 3 railway project General Contracting project, the current personnel withdrawal is nearing the end, but due to the uncertainty of the situation in Libya, the project site equipment, material preservation and follow-up progress will be uncertain.　　And the evacuation itself will have a certain cost.　　The previous day, another listed company China Construction Engineering Corporation also issued a statement of Libya's business, the announcement that the building in the local cumulative contract amount of about 17.6 billion yuan, the project completed not more than half will be forced to shut down.　　It is one of the largest companies to hire Chinese citizens, and one of the three local Chinese is built in China. The company entered Libya in 2007 and contracted projects to build 20,000 residential projects in Libya's second largest city.　　The original expected profit is more ideal.　　The announcement of the business situation announced that the current project management level did not generate losses, but the evacuation will occur a certain fee. In addition, during the unrest, the construction site, camp also encountered attacks and looting.　　The reporter interviewed to close to the decision makers of the enterprise, as the construction of local projects for housing projects, and the floor is not high, so compared to railway engineering, large equipment will not be many. The proportion of Libyan projects in China's market share is still small. The announcement shows that the company's project in Libya to be applied to the contract amounts to about 1% of the total contract.　　Chinese construction yesterday closed at 3.58 yuan/share, down 1.65% from the other. For the future of the business in Libya, the personsaid: "The follow-up progress depends on the political trend." If the government is stable, we will continue to invest and the unfinished projects will have to be completed.　　"he said. More Chinese companies are suffering from economic losses.　　The Ministry of Commerce issued a previous announcement that as of February 23, 27 business sites, camps were attacked and looted, to the Libyan enterprises caused a large number of direct economic losses.　　Loss statistics start the political risk warming the reporter learned from the interview with the China Foreign Contractors Association that the Chamber had started statistics on the damage to Chinese companies and reminded member companies of the political risks involved in outsourcing projects.　　Construction and municipal facilities are a major part of China's business activities in Libya, with about thirty or forty of the 75 Chinese companies engaged in large-scale contracted engineering operations in Libya, mainly in housing construction and ancillary municipal facilities. Libya is one of the important markets for China's foreign contracted engineering business.　　Before the unrest, there was a wave of construction in Libya to make up for decades of stagnation during the Libyan sanctions. Foreign contracted engineering Chamber of Commerce spokesman Ms Zhang to this reporter, said that the chamber of Commerce has started the loss of Chinese companies statistics, mainly includes four aspects of the content, they are the letter of guarantee amount, the project implementation process of equipment and raw materials, the existence of liquidity funds of local banks as well as the project was postponed,　　The cost of default incurred in accordance with the contract. But statistical work at this stage is rather difficult.　　Chamber of Commerce staff told reporters that as the basic business personnel have been evacuated, inventory can only be a number of conceptual work, there is no specific detailed data.　　A number of enterprises, including Beijing Hongfu, said that the focus of the work is still to ensure the safety of personnel evacuation, asset inventory and loss assessment results are still to be seen. The Chinese Embassy in Libya has formally addressed the Libyan Ministry of Foreign Affairs after the attack.　　Du Minghao, spokesman for the Libyan embassy in Libya, said to this reporter, such as the loss of Chinese companies to complete the statistics, the embassy will be in accordance with domestic instructions, continue to negotiate. After the unrest in northeast China, enterprises will pay more attention to risk assessment and control, and increase investment.　　Ms Zhang to this newspaper, the contractor will recently held a seminar on the security situation in the Middle East and response measures to meet the challenges of the new security situation. "In the past, our companies have become more dependent on experience and now need more detailed feasibility studies." "Ms Zhang said.　　For example, the occurrence of sudden political or social unrest, emergency mechanism can keep up, the management of accounts receivable, equipment preservation and maintenance have no plans, these are in the project implementation process need to consider. Ms Zhang told reporters that the contractor has begun to plan to launch claims and recovery work on Chinese companies ' projects. But she also said it depends on the development of the situation and the desire of the business. "It depends on whether there is a change in the local government to determine the claim and recovery target." "she said.