Chinese firms introducing new forms of energy into Ethiopia

"At the same time, Ethiopia is providing market access to Chinese companies," said Shide.

As of Dec 31, 2012, the cumulative value of contracts signed by Chinese companies in Ethiopia totaled $18.82 billion, with $9.71 billion of work delivered.

Major sectors covered by these contracts include roads, power, telecommunications and water conservation, according to figures from the Ministry of Commerce.

China has completed 24 foreign aid projects in the country, such as the rehabilitation of the Aba Samuel Hydro Electric Power Plant and the construction of the Addis Ababa Municipal Road.

"Foreign aid is becoming a significant path for China's giant players to contribute to the development of Ethiopia.

"It's also pushing Chinese infrastructure builders into the 'going global' process," said Xie Xiaoyan, China's ambassador to Ethiopia.

Xie said that he attends at least one contract signing or groundbreaking ceremony each week.

Historic railway

Back in 1971, China financed and built the 2,000-km Tanzania-Zambia railway, the largest single foreign aid project undertaken by China at the time.

Decades later, the $124 million African Union headquarters in Addis Ababa, which was completed at the end of 2011 and handed over in 2012, was another major infrastructure project in China's foreign aid history.

As a latecomer to the marketplace, contractor China State Construction Energy Ltd is focusing on teaching local workers how to manage and maintain sophisticated projects.

"It is a good way to enter a new market, through the Chinese government's aid program. I think the Chinese government will emphasize different industries in different periods," said Liu Chunpeng, director for the technical cooperation group at the AU headquarters.

"Although we have missed the prime period for road construction, we are looking forward to the budding housing market," said Liu.

China Road and Bridge Corp, which entered Ethiopia relatively early in 1998, has built on its advantages with its core business of roads.

"Foreign aid projects contributed to prime the pump for our market growth," said Wei Qiangyu, deputy general manager of the company's Ethiopian office.

In the past 15 years, China Road and Bridge has built more than 2,000 km of roads.

Ethiopia-China Friendship Avenue, located in the center of the capital, was a project for the company in 2004. And China Road and Bridge is now working on the Bole Ring Road RBT Meskel Square Road Project, the first Ethiopian highway (the Addis Ababa-Adama Toll Motorway) and Addis Ababa Bole International Airport.

China Road and Bridge has big plans, such as developing commercial property or cooperating with local governments to establish integrated planning companies.

Wei said that whether a company can get a foothold in the market depends on whether its aid project can make a profit.

"I think the government should look at the capabilities of a company when it comes to bidding, not just considering the price," said Wei.