China National Chemical Engineering (Group) Corp. (CNCEC) and China Export and Credit Insurance Corporation (SINOSURE) held a signing ceremony in Beijing for the first overseas investment insurance policy for SINOSURE. CNCEC has become the first investor and constructor that has invested in an overseas project through the BOOT initiative.
BOOT (Build, Own, Operate, Transfer) is a new investment mode in the world. It has become the patent of international engineering contracting giants. CNCEC's investment is for the Indonesia Palembang Power Plant project. Total investment in the project is US$ 98.43 million. The power plant will be operated by CNCEC for 20 years.
During the Asian financial crisis, the government of Indonesia halted the construction of some foreign-invested power plant projects, which has damaged foreign investors. It is, therefore, a courageous move for CNCEC to pursue this investment.
