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

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

BRIEF INTRODUCTION BACKGROUND CHEC  1980 CHEC established  One of the two arms for internation  1997 restructured to be CHEC Group business  2005.12 CHEC and CRBC merged and  90+ branches in he world formed CCCC  New signed contract US$12 billion  2016 No.3 in the world as the international revenue US$4.8 billion (2016) Contractor by ENR 250 CORE BUSINESS Dredging Capacity  Transportation Infrastructure: harbour,  3 specialized dredging companies dredging & reclamation, road & bridge, of CCCC airport, railway,  TSHD installed capacity 335,974 m³  Urban Complex Development and  CSD installed capacity 560,305kW Management  Investment POSITION SERVICES  CCCC is the leader of OBOR  Full chain service for A to Z Strategic Practitioners.  global resource integration;  No.1 Contractor in term of  Whole package solution for infrastructure Outstanding contracts and new development; signed contracts in OBOR Region  Anchoring investor;  O&M services;

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

Service Chain • Full chained service; • global resource integration; Master • Whole package Industry FS plan FS solution for study Approval O&M infrastructure Survey development; Commis • Anchoring investor; sioning Pre. • O&M services; Design Complet ion Full service Project Approval Project chain Control Financing QA/QC Eng. Constru Design  provide professional ction Procure Tender Contract Budget services for clients in ment Negotiation Planning the world

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

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

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 21 st - 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 OBOR Communities peace and a community cooperation of responsibility mutual openness and learning mutual political trust inclusiveness economic integration cultural inclusiveness a community a community mutual of shared of destiny benefit interests “… 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 .

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

CHEC in OBOR Initiative Colombo International Financial City Background : As the one of the flagship projects on OBOR Initiative, the Colombo International Finance City Project was inaugurated on 14 th 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 other 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

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

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

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 options, 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