China Overseas Engineering Group
| Company type | Subsidiary |
|---|---|
| Industry | Construction and engineering |
Area served | China, South Africa, Morocco, Europe |
| Parent | China Railway Group Limited |
China Overseas Engineering Group Co., Ltd. (COVEC) operates as a construction and engineering enterprise based in China and functions as a subsidiary under China Railway Group Limited, a prominent conglomerate encompassing various engineering and design firms.
COVEC made its entry into the South Africa market in 2006 by securing a public tender valued at 425 million rand from the Trans-Caledon Tunnel Authority, the governmental body responsible for managing bulk water infrastructure. The company's proposal was approximately 25% lower than those of competitors, including well-known local groups such as Group Five Construction and Vaal Civils. This highly competitive pricing strategy sparked concerns among domestic firms regarding potential reductions in construction profit margins.
In Morocco, COVEC undertook the construction of a demanding 67 km segment of the Fez-Oujda highway between Taza and Guercif. The project involved navigating challenging terrain and implementing sophisticated drainage systems to address soils with high water absorption characteristics.
COVEC also extended its operations into Europe, notably securing a contract in 2009 to construct a motorway linking Warsaw and Berlin. Nevertheless, the company did not complete this undertaking, subsequently withdrawing from Poland and currently facing a compensation claim amounting to €200 million related to toll revenue losses and contractual penalties. The project was eventually finalized by BÖGL a KRÝSL in time for UEFA Euro 2012.