full Annual Report 2006 (PDF 3.2MB)

Directly Managed, Overseas Civil EngineeringReview of OperationsOverseas Operations22The Global Construction MarketEnvironment: Brightening Prospectsfor InvestmentInvestment in construction is acceleratingthroughout the world as conditionsbrighten with the continued strength of theU.S. and Chinese economies, and theeconomic recovery in Japan.In Taiwan, India and other regions in Asia,many new infrastructure projects, includingsubways, roads, bridges, dams andairports, are being launched in linewith economic development. In the oilproducingregions of the Middle East andNorth Africa, the rising price of crude oilhas produced a flood of oil money drivingactive investment in construction of officebuildings, hotels, and other transport andenergy-related infrastructure. In Africa, theJapanese government is planning toincrease ODA to developing countries.Those market environments are brighteningthe prospects for global constructioninvestment.Dhauliganga HE Project Stage I:Civil Works for Dam and PartHead Race Tunnel (Lot—I), IndiaCivil Engineering Projects: BusinessExpansion ContinuesIn response to these market conditions,Kajima is taking a proactive stance withregard to overseas business development,making overseas civil engineering businessan important item on the agenda inits new three-year medium-term businessplan launched in April 2006 and extendingthrough the financial year to March 2009.Specifically, the Company will pursuea policy of focusing on the Japanesegovernment’s ODA grants and yen-basedloan projects, while at the same timepursuing large-scale, international tenderprojects financed by national or regionalgovernments, state-owned companies, orthe World Bank or other internationalfinancial institutions.Kajima will make efforts to build strategicalliances with powerful overseas partnersand subcontractors to enhance the competitivenessin the world market. We willalso pursue projects in such a way as tomaximize our technical expertise andcomprehensive capabilities.Keelung River Yuanshantze FloodDiversion Project, Taiwan