Business Opportunities Under CPEC Policy Framework Presentation By - PowerPoint PPT Presentation

Business Opportunities Under CPEC Policy Framework Presentation By KHALID MEHMOOD CEO / EX-SECRETARY PC-CPEC , Pakistan CPEC Platform Int. Pakistan / Al- Falah Consultant Int. Pakistan Islamabad, Pakistan MEMBER: RCCI & ICCI, Pakistan 01 6

The he Belt Belt and and Roa oad d : Six E Six Economic conomic Cor Corridor ridors s Spann Spanning As ing Asia, Eur ia, Europe and Africa ope and Africa 2 02

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CPEC CPEC: : Ch Chan ance ce Of Of Eco Econo nomic mic De Develo elopm pmen ent t & & Globa Global l Cha Chang nge e 6 04

List of the Projects Joint Ventures  Airline Project  Special Economic Zone (SEZ)  5 Star Hotel Project, Islamabad.  E & P Projects  Tourist Resort - Kamari's, District, Gulmit  Resort/City Club in Islamabad  Resort in Gwadar  ZHC/ Hanjra – Commercial & Apartments Project  ISB Int. Airport - Commercial & Apartments Project  Hydro Power Plant Project 05 6

Airline Project Phase Phase- 1  Phase -1  Operating Company: Ryan Air, Pakistan  Air blue/PIA: providing 320 or 321 seated air craft for the project.  Feasibility of the project is prepared on 67 passengers per flight to make the flight expenditure even.  Agreement is signed with the government of Xian, Government of China, providing a subsidiary amount of $37,000 for 1st year, $ 29,000 for 2nd year, and $ 24,000 for 3rd year.  Operation of the project can be start within 60 days after signing the agreement.  Initial routes are Karachi, Islamabad and Xian, China.  Initially, the amount of UD$ 3 million will be provided by the investors.  On the investment of the subject amount, the company will provide a profit of 30 % per annum on investment, for 3 Years. 06 6

Airline Project Phase Phase- 2  Phase -2 Joint Venture / Ryan Air & Investment Company • Ryan Air offers 40% shares of the company on the investment of UD$12 - UD$15 million. • Operation will be start with Hajj and Umrah flights with 2 airplanes. Note: The company has a charter and RPT Licenses world vide. Al-Falah Consultant Int. Islamabad Pakistan will facilitate the investment company and Ryan Air to finalize all the agreement. 07 6

Airline Project The Rayyan Air – Company’s Profile : Company Management:  Experience of core aspects of commercial aviation  Record of performance and deliverance as Charter Operator Company Licenses :  Regular public transport (RPT)  Charter license – Class II  Self-ground handling License  Ground handling agent.  Rayyan Kashgar Logistics Company-( Registered in China)  Rayyan Logistics & Trading Company (Pakistan approval OK to operate Trucking and  Bus Services between Islamabad and Kashgar and Islamabad and Central Asia).  Rayyan International Management School ( Chinese- English- Arabic and Spanish language program School- Pakistan approval being sought). Operational Experience and Status:  Operated two B747 Freighter aircraft on own AOC during the period January 2010 till April 2014  Operated two BN-2 and one IL-76 on own AOC  Operated a regular charter passenger service on Islamabad-Kashgar-Islamabad sectors 2013-2016  China Government supports extension of the service from Kashgar to Dubai via Islamabad with frequency increase  China Government has assured support for further flights to Dushanbe/Gwadar/Bishkek via Islamabad 08 6

Airline Project Financial Facts & Share Holding  Rayyan Air is owned by the Chief Executive Captain Fateh Sher Bhatti and his wife, with equal shareholdings  The company is completely free of any liability, lien or financial obligation. The Company has a skilled and experienced management team, along with a credible reputation in the local and global aviation market  The Company has cash assets exceeding Rs: 200 millions in the form of security deposits with Pakistan Civil Aviation, for its Regular Public Transport (RPT) and International Charter Licenses  Rules of Pakistan Civil Aviation shareholding of any foreign investor to a maximum of 49% percent stake in a local Airline. However, it would be possible for Investor to legally acquire controlling shares (over the 49% limit) by signing a side agreement with the two current shareholders with payment of negligible security of USD 1 Million that will be adjusted after the evaluation of the company value and payment of the acquired shared. The company value may be evaluated after six months or when Investor deems appropriate.  Company holds International charter and Regular public transport licenses ready to be renewed  Licenses can be renewed within two weeks and airline can be launched within 60- 90 days once funds are made available 09 6

Special Economic Zone (SEZ) at M2, Rawalpindi  Land available for joint venture to work on SEZ - 300 Acers  45 mints drive from Islamabad – 8 km from M2 on CPEC junction  Electricity (Hydro Power/Solar Power), Gas and Water is available  Investment model can be chalk out on the investment of UD$80 + million.. Note: The project can be start immediately.  Special Economic Zone (SEZ) Act 2012 Keeping in view CPEC Policy framework the Government of Pakistan passed Special Economic Zone (SEZ) Act 2012. It was promulgated to attract the investment and promote better infrastructure and to provide a platform to help grow the economy and shifting the Chinese industry in Pakistan.  Benefits for developers The developers shall be entitled to the following benefits, namely: One time exemption from all custom-duties and taxes on plant and machinery imported into Pakistan except the items listed under Chapter 87 of the Pakistan Customs Tariff, for the setting up of an SEZ subject to verification by the BOI; and Exemption from all taxes on income accruable in relation to the development and operation of the SEZ for a period of five years, starting from the date of signing of the development agreement. 6 10

Special Economic Zone (SEZ) at M2, Rawalpindi Benefits for zone enterprises.- All zone enterprises shall be entitled to the following benefits, namely:  One time exemption from custom-duties and taxes on import of plant and machinery into SEZ except items listed under Chapter 87 of the Pakistan .Customs Tariff, for installation in that zone enterprise subject to verification by the BOI.  Exemption from all taxes on income for enterprises commencing. Commercial production by the thirtieth June, 2020, in the SEZs for the next ten years; “provided that exemption from all taxes on income for those zone enterprises or firms which commence commercial production after the aforesaid date shall be for the next five years ” Advantages of Special Economic Zones: • Anchor for attracting FDI Growth Contribution • Industrial Development • Employment generation Development of Vendor Industry & Supply Chain • Logistics Development • Import Substitution • Increase in Indirect Taxation • GDP Growth Contribution • Development of Pakistani Brands • Technology Transfer and Productivity enhancement • Increase in Exports • Skill Development & Capacity Building 6 11

Two 5 Star Hotel Project Islamabad According to international study in Islamabad presently, there is shortage of 2000 rooms’ capacity per -night. Site Location: Both projects have Prime Locations in Islamabad, Club/Murree Road. 5 minutes’ drive from Parliament House, Foreign Office and Serena Hotel, Islamabad. Area: • 20 Kanals + and 31 Kanals ( Blue Area Islamabad) Estimated Covered Area 80,000 Sq./f Approvals:  CDA ( 3 basements, 1st Floor + 9 stories )  LOI from different international upper scale hotel brands for operations are approved • HVS Report. Estimated Investment Cast: • Rs. 70 Cr. +, Without brand name. Brand Offers: • Hilton • Sheraton • Radisson Blue • Golden Tulip 12 6

E & P Project: 1. Petroleum Exploration Blocks Bidding Round  Land Explored : 33 % out of 827,000 Sq Km  Total Blocks : 50 Blocks  Estimated cost without land: 0.5 billion  Blocks Completed: 10 blocks completed, located in the various geographies of Pakistan.  Blocks In Progress : 30+ blocks are being offered by GOP for auction in the coming bidding rounds  Operating Companies : 59 companies are operating in Pakistan, of which 44 are foreign companies Note: The Ministry of Energy (Petroleum Division) Pakistan plans to hold petroleum exploration blocks bidding round in 2019 with intent to discover new reserves and reduce dependency on imported crude oil and liquefied natural gas (LNG). Our Expertise & Value Addition: Our partner, Currentage, is the premier technology market development company operating in the Energy Resources Development & Upstream Petroleum Industry of Pakistan since 1991. During the last over 27 years, we have successfully introduced latest oil & gas exploration and development technologies and foreign companies in the Industry and developed sustainable business for our counterparts. The company has expertise in local geology, geophysics, petro physics, engineering, economics, corporate acquisition, mergers with full understanding of the bidding / application process. We have been able to shortlist most prospective and commercially attractive blocks out of forty being offered for bidding. 13 6