Agenda and the Silk Road Infrastructure Fund for Southeast Asian - - PowerPoint PPT Presentation

The “One Belt One Road (OBOR)” Development Agenda and the “Silk Road” Infrastructure Fund for Southeast Asian Infrastructure Projects

Ma Jian Hua CHINA HARBOUR ENGINEERING COMPANY

OBOR and Our Business Cooperation Opportunities Finance Solutions One Belt One Road Brief Introduction

CONTENT

BRIEF INTRODUCTION

 1980 CHEC established  1997 restructured to be CHEC Group  2005.12 CHEC and CRBC merged and formed CCCC  2016 No.3 in the world as the international Contractor by ENR 250  Transportation Infrastructure: harbour, dredging & reclamation, road & bridge, airport, railway,  Urban Complex Development and Management  Investment  Full chain service for A to Z  global resource integration;  Whole package solution for infrastructure development;  Anchoring investor;  O&M services;

BACKGROUND

 3 specialized dredging companies

• f CCCC

 TSHD installed capacity 335,974 m³  CSD installed capacity 560,305kW  CCCC is the leader of OBOR Strategic Practitioners.  No.1 Contractor in term

• f

Outstanding contracts and new signed contracts in OBOR Region  One of the two arms for internation business  90+ branches in he world  New signed contract US$12 billion revenue US$4.8 billion (2016)

CORE BUSINESS SERVICES CHEC Dredging Capacity POSITION

Hong Kong, Macau Singapore Malaysia Indonesia Timor-Leste Philippines Thailand, Vietnam Myanmar Pakistan Sri Lanka India PNG Bangladesh Central Asia Nepal Maldives Brunei Vanuatu Solomon Is. U.A.E Oman Lebanon Israel Qatar Bahrain Kuwait Saudi Arabia Iran Egypt Angola Mozambique Malawi South Africa Zimbabwe Namibia Sudan South Sudan Djibouti Uganda Ghana Cote dIvory Chad Somalia Gambia Eritrea Tanzania Algeria Nigeria Cameroon Gabon Morocco Guinea Liberia Senegal Madagascar Cuba Jamaica Cayman Grenada Dominica Panama Columbia Mexico Guyana U.S.A Argentina Brazil Coasta Rica Chili Trinidad & Tobago Surinam Venezuela Peru Canada Bolivia France U.K. Russia Latvia Poland Central European Fiji

Global Network

• CCCC overseas office: 210
• CHEC overseas office: 92

Historical Performance ENR 2016 CCCC entered into TOP 3 in the world ENR 2015 CCCC entered into TOP 5 in the world

Full service chain

Master plan FS FS Approval Survey Project Approval Financing Eng. Design Tender Contract Negotiation Budget Planning Procure ment Constru ction QA/QC Project Control Complet ion Commis sioning Industry study O&M Pre. Design

• Full chained service;
• global resource

integration;

• Whole package

solution for infrastructure development;

• Anchoring investor;
• O&M services;
• provide professional

services for clients in the world

Service Chain

Signature Projects

Mombosa-Nairobi Railway Project, 2017 Colombo In’l Financial City, Sri Lanka, 2018 HKZM Bridge-Artificial Islands, China, 2017 Yangon Int’l Airport, Myanmar,2016 Gwadar Port, Pakistan 2004

OBOR and Our Business Cooperation Opportunities Finance Solutions One Belt One Road Brief Introduction

CONTENT

One Belt One Road Initiative

• 66 nations
• 4.4 billion

people, 63% of the world

• US$ 11.6 trillion,

35% world merchandize trade

• US$22 trillion,

30% world’s GDP

Overview of OBOR Initiative

• The Silk Road Economic Belt: “Eurasia Land Bridge”, development of the economic

corridors connecting China with the Mediterranean Sea, the Persian Gulf, the Middle East, South Asia, and Southeast Asia

• The 21st- Century Maritime Silk Road: to development the economic corridor of

China’s east coast to Europe through the South China Sea and the Indian Ocean, and the east into the South Pacific. Cooperation Mechanism

• Bilateral Cooperation: G2G frameworks, joint commission, etc. to detail the

planning, identify the priority , execute the projects/programs

• Multi-lateral Cooperation: Shanghai Cooperation Organization (SCO), Asia

Cooperation Dialog (ACD), ASEM (Asian-Europe Meeting), CHINA-ASEAN (10+1), CASCF (China-Arab States Cooperation Forum), CICA (The Conference on Interaction and Confidence-Build Measures in Asia), APEC (Asian Pacific Economic Conference), and the proposed OBOR Summit, etc.

• Sub-regional cooperation: Sino-Pakistan Economic Corridor, Greater Mekong Sub-

region, South Asia Sub-continent

OBOR Principles

peace and cooperation mutual learning mutual benefit

• penness and

inclusiveness a community

• f

responsibility a community

• f shared

interests a community

• f destiny

mutual political trust economic integration cultural inclusiveness

OBOR Communities

“… We believe these initiatives could help further open up our country and forge a more balanced and inclusive global industrial chain. This in turn could pool the comparative strengths of all countries and foster a global community of common interests and development for win-win, inclusive and common progress.” – H.E. Premier Li Ke-Qiang,

2015 World Economic Forum

OBOR Infrastructure

The state of infrastructure in many continues along the OBOR routes is lower than the global average, and there is a huge demand for its construction, PwC estimates the countries along the route will collectively need US$5 trillion of the investment in transportation infrastructure in 2015-2020.  Transportation infrastructure: Road & Bridge, Railway, Airport, Ports  Industry: power plant, manufacturing,  Building: housing, urban complex  Communications: IT, Internet +  Social Services: Schools, Hospitals, facilities for the elders  Energy: Gas, petroleum, new energy  Environment: waste management Contracts between China and OBOR routes countries had signed amounting US$1.4 trillion since the OBOR initiative launched in 2013, in 2016 only achieved US$494.0 billion.

OBOR and Our Business Cooperation Opportunities Finance Solutions One Belt One Road Brief Introduction

CONTENT

CHEC in OBOR Initiative

Background: As the one of the flagship projects on OBOR Initiative, the Colombo International Finance City Project was inaugurated on 14th Sept 2014 by the former president of Sri Lank, H.E Mahinda Rajapaksa, and president of China, H.E. Xi Jin-Ping. CHEC will eject US$1.5 billion for the primary development, and the funding from the

• ther sources will achieve US$13.0 billion.

Legal frame: Colombo International Financial Centre Law, based on the British Laws Description: 269ha artificial island to be reclaimed from the sea, 5.65 million m2 building to be constructed. The land will accommodate the finance, business, entertainment, residency, as well the public service facilities etc., and developed as international financial center at the heart of Indian Ocean, Colombo. Social Impact: home to 250,000 people, 100,000 job opportunities will be created, fisherman’s income support program. The project itself will become one of the new engine to drive strongly Sri Lanka’s economic. Intro Video

Colombo International Financial City

2015.11 Project Site 2015.11 Project Site 2014.09 inaugurate TSHD in Asia working Construction Period 31 months

OBOR and Our Business Cooperation Opportunities Finance Solutions One Belt One Road Brief Introduction

CONTENT

Financial Solutions

There are various financial options for the OBOR initiative.

Silk Road Fund Silk Road Fund (SRF), was launched with capital US$40 billion by China in Nov 2014 during APEC.

• Beneficiary: Countries along the OBOR routes
• Project: Infrastructure, Resources and energy

development, Industrial capacity building, Financing services, etc.

Policy

• Medium- to long-term development fund: cooperating with other financing
• ptions, focused on investment opportunities and financing and investment

services for the infrastructure, resource, and industry development, which are involved with massive fund, long term of return period. Silk road fund is also flexible to minor share investment, to enhance the credit of the project, optimize the financial structure, and attract more fund join in.

• Take the industry development as the priority: ensure the compatibility with the

countries’ strategic planning, support the economic development, especially industrialization, urbanization, reformation of industry structure, and improve the sustainable development capacity.

• Market-oriented fund management: not involved in the ODA projects, but the

economic feasible project with good figures of ROI in long term.

• Diversified options in financial solutions: equity investment, as well the project

financing, bonds, special fund, trust management, and entrusted investment , etc.

Typical Projects

• Karot 720MW Hydro Power Plant Project in

Pakistan, US$ 1.65 billion, 2015.04

• Acquisition of 100% equity of Pirelli & C.

SpA, US$ 7.65 billion, 2015.03

• Acquisition of 9.9% equity of Yamal LNG

Project from Novatek in Russia, US$1.23 billion, 2016.03

• Acquisition of 10% equity of PJSC Sibur

Holding in Russia, US$1.26 billion, 2017.01

The Export-Import Bank of China Introduction

• The Export-Import Bank of China is a state-funded and state-
• wned policy bank with the status of an independent legal entity. It is a

bank directly under the leadership of the State Council.

Objects

• The Bank dedicates to support China’s foreign trade, investment

and international economic cooperation. The Bank plays a crucial role in promoting steady economic growth and structural adjustment, supporting foreign trade, and implementing the “going global” strategy.

Successful Case

• Mombasa Nairobi Railway

China Development Bank Introduction

• China Development Bank is a policy financial institution under the

direct leadership of the State Council. CDB is the world’s largest development finance institution, and the largest Chinese bank for foreign investment and financing cooperation, long-term lending and bond issuance.

Objects

• CDB provides medium- to long-term financing facilities that serve

China’s major long-term economic and social development strategies.

Successful Case

• Indonesia 35GW Power Plant Development
• Colombo International Financial Center, Sri-Lanka
• South Railway Line, Malaysia

OBOR and Our Business Cooperation Opportunities Finance Solutions One Belt One Road Brief Introduction

CONTENT

Philippine Development Plan 2017-2022

Residential Land Airport Port / Breakwater Flood Management

8.4 Trillion pesos will be invested for Infrastructure Development

Reclamation Projects in Philippines

Manila Bay Reclamation Projects:

• SM Reclamation in Pasay and

Paranaque

• Harbour Center Jetty Extension
• Sangley Point Reclamation
• New Cavite International Airport

Manila is the pearl of Southeast

• Asia. NCR already accommodates

12.9 million people with only 614km2 land. As the population still increase, no more land for the future development

More works for Philippines Development

Philippines is the strategic location to complete OBOR’s connection with the south pacific region. H.E. President Rodrigo Duterte’s administration take great emphasis

• n

infrastructure development. Philippines now has one of the strong economic growth during the past 10 years in the world, abundant with skilled and professional human resources the infrastructure, but the further development is constrained by the infrastructure necklace. we belief the infrastructure development will strongly boost the economic and lead the country to anther Golden 10 Years.

CHINA COULD BE THE RELABLE PARTNER TO DEVELOPMENT THE INFRASTRUCTURE IN PHILIPPINES!

MABUHAY ANG PILIPINAS! SALAMAT!