China Overseas Engineering Group

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Not to be confused with CGC Overseas Construction Group, another state-owned Chinese construction company
China Overseas Engineering Group
State-owned enterprise
Headquarters China

China Overseas Engineering Group (abbreviated as COVEC and sometimes referred to as China National Overseas Engineering Corporation) is a Chinese construction and engineering company that is subsidiary of China Railway Engineering Corporation, which is organized as a large collection of engineering and design firms.

The company premiered in South Africa in 2006 when it won a 425-million rand public tender held by Trans-Caledon Tunnel Authority, the state agency responsible for bulk water infrastructure.[1] The selection of COVEC was described by a local trade publication as unsettling to the other short listed bidders, two local construction consortia. One consisted of Group Five Construction, Grinaker-LTA, Rainbow Construction and WBHO Construction; the other was Vaal Civils, made up of Concor, CCC, Kgalagadi Multi Projects, Thuso Water, SET-MAK Civils, Mascrete and Betsy Building.[1] COVEC's bid was 25% below the lowest other bid, and as a consequence local construction companies expressed fears about downward price pressure that would end hopes they had of a strong rebound in the construction market with better profit margins.[1]

In Morocco, COVEC built the 67 km section of the Fez-Oujda road extending from Taza to Guercif.[2] The project presented difficulties in terrain and geology for COVEC, requiring the levelling of hills and valleys and provision of porous materials that would provide adequate drainage in a region with water absorbing soil.[2]

In Poland, COVEC,[3] won the bid for construction of a highway, linking Warsaw with city of Łódź in September 2009, but didin't managed to complete construction and withrawed it's operations from Poland, and is now facing threat of a €200 milions compensation claim, which include four month of projected toll losses and 10 percent fine.[4] Highway was planned to be ready for use at the time when UEFA Euro 2012 in Poland would begin, BÖGL a KRÝSL took construction after COVEC reneged contract and finished it on time.


  1. ^ a b c "Shock as Chinese contractor snaps up big SA water contract". Engineering News. January 26, 2006. 
  2. ^ a b "Morocco's road programme boosts economy". World Highways. September 2010. 
  3. ^ "European Project Trips China Builder". WallStreetJournal. June 2012. 
  4. ^ "Covec to Face 200 Mln Euro Claim for Violating Polish Highway Contracts". CaixinOnline. September 2011.