Wednesday, January 6, 2010

China steals another Poland Infrastructure contract by underpricing strategy

Poland's motorway constructors have levelled claims that China is buying its way into the European infrastructure market by underpricing its bids.

Poland is claiming unfair competition against a Chinese group which has infiltrated their country's highways market.

"We note that the bid by the Chinese consortium is based on a price far below the value of the tender, which constitutes unfair competition," the constructors' lobby group, the OIGD, said in a letter to European Commission chief Jose Manuel Barroso.

The letter alleged that Beijing was helping Chinese firms skew foreign markets. It was sent to Barroso and cited the commission polices competition rules across the 27-nation European Union.

The OIGD urged the commission to take anti-dumping measures against the China Overseas Engineering Group Company (COVEC)

In September, COVEC beat several European competitors in the race to build 49 kilometres (30 miles) of the A2 highway linking the Polish and German capitals, Warsaw and Berlin.

The construction is part of Poland's ongoing issuing of tenders as it drives to upgrade its infrastructure in time to co-host the 2012 European football championships.

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