Chinese infrastructure construction firms have recently won more than US$5 billion in contracts for Indonesia and Macau. China Railway Group won a US$4.8 billion contract to build and operate a rail coal freight network in Indonesia, equivalent to 13.96 per cent of the company's turnover in 2008, the state-owned firm announced on the Shanghai Stock Exchange yesterday. On March 23 in Beijing, the Shanghai and Hong Kong-listed company signed the US$4.8 billion contract with Bhakta Hill Pan Pacific Railway Corporation, consisting of a US$1.3 billion project to build the railway within 1,460 days and a US$3.5 billion yuan contract to operate it for 20 years. Given the long-term nature of the project, the contract would not have any significant effect on China Railway's results this year, the company said. 'The contract's risks are mainly in financing, currency exchange rate and operations,' China Railway said. The financing risk arises from the project's dependence on Bhakta Hill's ability to raise funds, while the foreign exchange risk arises from the fact that 65 per cent of the consideration is in US dollars, China Railway said. The operational risk is because project revenue depends on how much coal is transported, China Railway said. Recently, a subsidiary of China Communications Construction (CCC), a state-owned port construction firm, and China National Electric Equipment Corporation signed in Beijing a US$64.41 million contract to build a port for the Tanjung Awar-Awar electric power station in Java in Indonesia, CCC said. The port will facilitate the supply of raw material to the power station. The construction period is 20 months. CCC said last week that West Java governor Ahman Heryawan welcomed the company's increased participation in infrastructure projects in the Indonesia province. Heryawan said CCC had established itself as one of the leading engineering contractors in Indonesia. The Indonesian government plans to see infrastructure spending of US$140 billion in the next five years to lift annual GDP growth to 7 per cent, including US$90 billion that it hoped would come from the private sector, Agence France-Presse quoted the Indonesian Investment Co-ordinating Board chairman Gita Wirjawan as saying. Last week, CCC won a 1.58 billion pataca contract to expand a port in Cotai in Macau, CCC said. The Macau project involves a passenger terminal, with 16 berths for boats carrying 400 passengers, and three berths for boats carrying 1,200 passengers, as well as helicopter pads. The construction period is 1,088 days.