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

SERVICES POSITION

 Full chain service for A to Z  CCCC is the leader of OBOR

 global resource integration; Strategic Practitioners.
 Whole package solution for infrastructure  No.1 Contractor in term of
development; Outstanding contracts and new
 Anchoring investor; signed contracts in OBOR Region
 O&M services;
Global Network

Russia
Latvia
Canada Poland
Central
U.K. European
Central Asia
France Qatar
Lebanon Bahrain
U.S.A Israel Kuwait
Iran Nepal
Saudi
Cuba Morocco Pakistan
Jamaica Egypt Arabia Bangladesh
Algeria U.A.E
Cayman Chad Sudan Myanmar Hong Kong, Macau
India
Mexico Grenada South
Dominica Sudan Thailand, Vietnam
Gambia EritreaOman Philippines
Coasta Rica Nigeria Sri Lanka Malaysia
Guinea Cameroon Fiji
Venezuela Djibouti Maldives Brunei
Panama Liberia Singapore
Somalia Solomon Is.
Guyana Senegal Ghana Gabon Indonesia
Columbia Cote dIvory Uganda PNG
Trinidad & Timor-Leste
Tobago Tanzania Vanuatu
Surinam Angola
Peru
Bolivia Brazil Madagascar
Mozambique
Zimbabwe Malawi
Namibia
Chili South Africa
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
Industry plan FS • Whole package
FS
study solution for
O&M Approval
infrastructure
Survey development;
Commis
sioning • Anchoring investor;
Pre.
Design • O&M services;
Complet
ion
Full service Project
Project Approval
Control
chain
Financing
QA/QC
Eng.
Constru Design
ction
Procure Tender
 provide professional
Budget Contract
services for clients in
ment
Planning Negotiation

the world
Signature Projects
Mombosa-Nairobi Railway Colombo In’l Financial
Project, 2017 City, Sri Lanka, 2018

Gwadar Port,
Pakistan 2004

HKZM Bridge-Artificial Yangon Int’l Airport,

Islands, China, 2017 Myanmar,2016
 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 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
OBOR Communities

peace and a community

cooperation of
responsibility

openness and mutual

inclusiveness learning mutual political trust
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 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
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
 2014.09 2015.11
inaugurate Project Site

2015.11 Project
Site

TSHD in Asia Construction Period

working 31 months
 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
The Export-Import Bank of China

Introduction
• The Export-Import Bank of China is a state-funded and state-
owned 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
 CONTENT

Brief Introduction

One Belt One Road

OBOR and Our Business

Finance Solutions

Cooperation Opportunities
Philippine Development Plan 2017-2022

8.4 Trillion pesos will be invested

for Infrastructure Development

Residential Land

Airport

Port / Breakwater

Flood Management
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 on 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!