Assisting local sub-contractors in technology development−Hydrochina Kunming Engineering
Hydrochina Kunming Engineering Corporation (KHIDI) is a large survey and design research unit with comprehensively first-rate qualifications in engineering design. It is primarily engaged in water conservancy and hydropower at home and abroad, wind power, solar electrical energy generation, as well as survey, design, scientific research, consultancy, supervision, general contracting, and other areas related to municipal engineering.
KHIDI was contracted to build the crude oil wharf reservoir of the China-Myanmar crude oil pipeline project in 2010. The reservoir was to supply water for the operating period of the crude oil wharf and for both the local people and animals and was also to act as a water supply reservoir for the oil and gas pipelines wharf between the two countries. In the early stage of the project, the sub-contractors postponed construction for management reasons; the lack of technicians in regards to reinforced concrete engineering and the backwardness of technology left the reservoir engineering construction in dire straits, with tight schedules, burdensome tasks and a lack of appropriate resource allocation.
To ensure safety, high quality and on schedule completion, KHIDI made full use of its own professional advantages to improve the sub-contractors’ management and technological levels, mobilized resources from all parties and effectively coped with various problems and risks in the process of project construction.
Improving sub-contractors’ management and technology skill
Because the sub-contractors had a poor level of technical skill in reinforced concrete construction and because of language barriers, KHIDI leveraged its own strengths to recruit Burmese technical workers from Northern Burma who could speak Chinese to lead the sub-contractors’ implementation of reinforced concrete construction engineering. As the subcontractors used massive amounts of manpower and wood and utilized backward construction methods, which resulted in inefficiency and the waste of natural resources, KHIDI taught local constructors mature domestic construction technology step-by-step in order to update the workers’ traditional construction methods, improve the efficiency of construction and provide favorable conditions for completion of the project on time.
Striving for support from the local community
KHIDI abided by the local laws and regulations, proactively paid taxes, protected environment, actively engaged in local community and promoted employment along the construction line. Moreover, it improved the infrastructure and development of the economy, and so won support from the local government, police and some of the villagers. To guarantee the security of the Chinese staff, the Burmese government communicated with the local people and sent government officials to the project department to help in the process of construction. With the shortage of common manpower for the sub-contractors, the local government helped the project department to assemble more than 100 local residents, organized the local villagers to engage in construction and gave out corresponding remuneration. As for the problem of insufficient concrete production capacity, the project department actively added engineering equipment and invited the support of other contractors nearby.
Though the efforts of all parties, the reservoir project was completed within the contract period, and the water supply project for the Maday Island villagers, which was added by the owners at a later stage, was also finished before the Watersplashing Festival during the Burmese New Year the same year and provided high-quality drinking water for the residents.
The quality of the project was well-received by the stakeholders
There were no quality problems, and the reservoir project received a 100% pass, which demonstrated the excellence of the engineering project. There were no incidents, no transmission, no death, no social security disputes, no quality accidents and no safety accidents. The project thus met with the approval of the owners and the local government.Improving the management and technology levels of Burma's related industries The engineering construction used a great deal of local companies, manpower and material resources from Burma. The contract amount subcontracted to Burmese subcontractors was approximately 5.5 million US dollars. The number of working days for locally recruited employees was 134,408, constituting over 80% of the total number of working days. The amount spent on local material procurement was 654 million kyat. The implementation of the project improved the management and technology levels of the local subcontractors and Burma's related industries.
Residents’ living standards improved
The living conditions of Maday Island residents were originally so poor. Previously, they even had no functioning road for transport, and in the dry season, the water was too muddy to drink. The construction of the reservoir not only addressed the water issues for the island’s residents, but also drove the construction of the surrounding roads. In April of 2012, Maday Island residents were able to pour clean water during the Water-Splashing Festival for the first time, rather than smearing mud onto each other due to a shortage of water.
The Company will continue to maintain its cooperation with local companies, seek multi-faceted cooperation with various local institutions to carry out localization management of staff and goods and materials, demonstrate its responsible corporate image, and drive the development of the local energy construction industries, so as to further foster the development of the local economy and society.
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