South Korean contractor Daewoo Engineering & Construction said yesterday that it had signed an agreement in principle to team up with China State Construction Engineering Corporation (CSCEC) to bid for international infrastructure projects.

According to the YonhapNews Agency, the two said they would concentrate on large schemes financed by the Asian Development Bank (ADB) and Korea’s Economic Development Cooperation Fund. They will also explore opportunities to team up for airport and real estate development projectsin markets outside Korea or China.

Jung Won-ju, chairman of Daewoo E&C, said he aimed to “maintain a mutually beneficial cooperative relationship across various sectors”.

“Based on the global network and technology of the two companies, we expect to continue to maintain win–win cooperation in various business areas, including architecture and infrastructure, to create synergy in the global market,” he said.

The two companies have agreed to collaborate on the Bataan–Cavite Interlink Bridge in the Philippines, which is expected to go out to tender in the near future. This project was commissioned by the ADB and the Asian Infrastructure Investment Bank.

This scheme will combine a 25km sea bridge and a 7km land bridge, and will be divided into six packages. It is expected to cost almost $4bn to build, of which $2.1bn will be provided by the ADB.

Daewoo has been diversifying its business portfolio, focusing on overseas city development projects and global infrastructure. The company recently received approval for its Kien Giang urban residential area project in northern Vietnam’s Thai Binh province.

The agreement with CSCEC follows another, concluded 10 years ago, which also announced a focus on infrastructure and real estate (see further reading)

Founded in 1957, CSCEC operates in some 140 countries. It has been ranked as the world’s top construction company for eight consecutive years by the Engineering News–Record.