Chinese investment wave heads for UK infrastructure

New arrivals at Heathrow Airport... Photo: Alice Photos Shutterstock
New arrivals at Heathrow Airport... Photo: Alice Photos Shutterstock

Employment prospects for UK construction professionals have been given a huge boost by a report that says China will invest £105Bn in UK infrastructure over the next ten years.

 

Energy, transport and property will be the most attractive targets for the Chinese investment, says a report from the Centre for Business and Economic Research and law firm Pinsent Masons. A spokesman said the investments will represent a 'game changer' for UK infrastructure funding with the Chinese more willing to shoulder construction risk than other international infrastructure investors.

 

Chinese investors have already invested over £11Bn in the UK, and hold a 10% stake in Thames Water and 10% in Heathrow Airport. China Nuclear Power Corp has already said it wants a stake in the EDF nuclear power station to be built at Hinkley Point.

 

The scale of Chinese ambition can be seen in news today of their attempt to buy London's HSBC tower, one of the UK's biggest ever property deals at over £1Bn, but which they were outbid on by the Qatar Investment Authority.

 

A Pinsent Masons spokesman said the investment seen so far was the beginning of a major trend and a trickle of Chinese investment would turn into a 'wave' over the coming decade.

 

Chinese investment companies are thought likely to form partnerships with UK construction companies rather than try to overcome the difficulties of using their own engineering and other construction staff. Precedents include Carillion working in partnership with Beijing Construction Engineering Group on the £800M Manchester Airport project. 

 

Other international investors like Canadian and Asian pension funds are also keen on making UK investments but there are few 'shovel ready' projects for them to invest in and their appetite for construction risk is not thought to be high.

Please rate

Comments 

Name
Email
  Ctrl + Enter

Most Read

HS2 starts work on UK’s longest railway bridge

HS2 starts work on UK’s longest railway bridge

The Colne Valley Viaduct will be the UK’s longest railway bridge, stretching for more than two miles across a series of lakes and waterways between Hillingdon and the M25.   The railway bridge is designed to improve rail links between London, Birmingham and North, help

Ovarro pollution early-warning technology chosen by Anglian Water

Ovarro pollution early-warning technology chosen by Anglian Water

In a world-first, the UK utility is implementing early-warning system BurstDetect from technology company Ovarro, as part of its drive to eliminate serious pollution events in its region by 2025.   Through a dashboard, BurstDetect provides an overview of system status together with current

A smarter focus on wastewater flows and levels

A smarter focus on wastewater flows and levels

The Government has just concluded its consultation on developing a Storm Overflow Discharge Reduction Plan (SORP). Andy Godley, from the Water Research Centre (WRc), looks at the latest developments in wastewater flows and levels.   It is difficult to argue with the sentiments behind the

This website uses cookies to enhance your user experience. By continuing to use this site, you consent to our use of these cookies. See our Cookie Policy.