Beijing Arbitration Commission

Forum themed “Construction and Infrastructure in Africa: Challenges and Opportunities to Chinese Contractors” Successfully Hosted

Publish time: Mon Mar 12 11:07:03 CST 2018

On the afternoon of Jan 10 2018, the 13th In-house Counsel Forum themed “Construction and Infrastructure in Africa: Challenges and Opportunities to Chinese Contractors” was successfully hosted by the Beijing Arbitration Commission / Beijing International Arbitration Center (the “BAC”). Legal professionals with extensive practice experience and senior legal experts from the Chinese construction industry were invited in the event, and the BAC Deputy Secretary General Dr. Chen Fuyong was presented and delivered speech.

The Belt and Road Initiative has brought unprecedentedly broad prospects to the China-Africa cooperation, and the growth of African investment demand has also provided invaluable opportunities to Chinese contractors. Meanwhile, legal risks for Chinese contractors and legal risk prevention and the handling of disputes in local political and legal environments have increasingly become hot issues concerned by Chinese contractors and the Chinese legal community. As said by Dr. Chen in his speech, the BAC, as a leading Chinese arbitration institution, has paid close attention to legal issues arising from the China-Africa cooperation, especially on infrastructure and dispute resolution and the practice thereof. In 2017, the BAC and the Nairobi Centre for International Arbitration jointly founded the China-Africa Joint Arbitration Centre (CAJAC) – Beijing and the CAJAC – Nairobi, a landmark event in China-Africa cooperation in the realm of arbitration. The BAC also expects to help promote a smooth China-Africa cooperation with its rich experience in dealing with international arbitration, especially those on infrastructure.

Dr. Chen Fuyong

The seminar was moderated by Dr. Helena Chen, Joint Head of China of Pinsent Masons LLP. Mr. Shane Voigt and Mr. Richard Laudy, Partners of Pinsent Masons LLP, were invited to give keynote speeches. Ms. Yang Limei, Senior Manager of Legal Dept. of China State Construction Engineering Corporation Ltd., and Mr. Li Zhiyong, Deputy General Manager of Legal & Risks Dept. of PowerChina International Group Limited, were invited to act as commentators.

Dr. Helena Chen

Mr. Laudy firstly presented an overall introduction of the features of infrastructure disputes worldwide. He pointed out that in recent years, global infrastructure disputes have been featured with high probability, large amount in dispute and long duration of time for resolution, and the essential problem of such disputes lies in the improper management of contracts. It is therefore of great significance for enterprises to face the problem and to resolve disputes through efficient and impartial means.

Mr. Richard Laudy

Mr. Voigt introduced the opportunities and challenges of infrastructure investment in Africa and the overall picture of African dispute resolution. He stressed that the weakness in infrastructure has become a key restraining factor for the development of Africa. Under the framework of Johannesburg Plan of Implementation, it has already brought huge opportunities to Chinese contractors. He also mentioned that risks coexist with such opportunities for Chinese contractors’ investment in Africa, and Chinese contractors should pay high attention to the potential culture gaps, as well as risks from government administration, different market circumstances and law regulation in Africa. Mr. Voigt suggested that Chinese contractors in Africa make contract terms as clear as possible, reasonably allocate obligations and risks between the parties, clarify the key factors of project execution, identify and prevent risks at an early stage, and enhance the communication so as to avoid material legal risks. At last, Mr. Voigt highlighted the overall picture of African dispute resolution and the significant role the CAJAC may play.

Mr. Voigt

Ms. Yang Limei shared her experience based on the investment in Africa by China State Construction Engineering Corporation Ltd. She boiled it down to six aspects, including the legal system, credit of employers, devaluation of currency, business registration and taxation, labor employment and discriminatory policies. Ms. Yang thought that the establishment of the CAJAC was recognized by both employers and contractors, and thus was of high significance for dispute resolution.

Ms. Yang Limei

Mr. Li Zhiyong referred to his seven-year experience residing in Africa, and shared the status quo of the African market, risks, dispute causes and resolution, as well as his personal discoveries. Mr. Li believed that Chinese contractors should be proactive, fully utilizing rules to protect their contractual rights, and try to have front-end intervention and to make smooth project delivery at the end. In a warm atmosphere, the speakers also answered questions raised by the audience.

Mr. Li Zhiyong

The forum

This forum is the BAC’s first event in 2018, and the BAC will continue to hold similar seminars and give attention to legal issues arising from sino-foreign cooperation under the Belt and Road Initiative. You are welcome to pay attention to and participate in such events.

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All disputes arising from or in connection with this contract shall be submitted to Beijing Arbitration Commission / Beijing International Arbitration Center for arbitration in accordance with its rules of arbitration. The arbitral award is final and binding upon both parties.
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