China Harbor Engineering Co Ltd (CHEC), the country's top port builder and a leading bridge construction firm, agreed on Friday to build a bridge linking the mainland of Malaysia with the country's northern Penang state.

When completed in January 2011, the $1.1 billion bridge will become Southeast Asia's longest.

The Export-Import Bank of China, a government-owned policy bank, will provide an $800 million loan, the largest amount provided by China to finance a single project in a foreign country.

The loan will carry a 3 percent interest rate over 20 years. Commercial banks usually have a shorter repayment period and higher interest rates.

The bridge is also CHEC's largest overseas project in terms of contract value.

"The bridge will become a symbol of friendship between China and Malaysia. It is also a great opportunity for CHEC," Sun Ziyu, CHEC president, told China Daily on the sidelines of Friday's contract and loan agreement signing ceremony.

Design and construction of the bridge is being undertaken by a consortium in which CHEC holds a 51 percent stake. UEM Construction, a unit of Malaysia's leading construction conglomerate UEM Group, has the remaining shares.

CHEC will design and build the main part of the bridge that will cross the South Channel, between Penang Island and the Malaysian mainland. UEM will be responsible for the bridge approach.

The 22.5-km bridge will be the second to link Penang Island with the Malaysian mainland after the existing Penang Bridge, which is being expanded to accommodate increasing traffic.

The new bridge is part of the Ninth Malaysian Plan, a comprehensive government blueprint to allocate the national budget from 2006 to 2010.

The most striking feature of the planned bridge is two sightseeing platforms at its central span. The platforms will enable tourists to enjoy a panoramic view of Penang and the mainland.

"Southeast Asia has been a major overseas market of CHEC due to its huge demand for infrastructure building. With the closer relationship between China and ASEAN countries, we hope to see more opportunities in the future," Sun said.

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(China Daily 07/14/2007 page1)

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