Corporate Brochure PDF

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CHINA ASIA PACIFIC EUROPE AFRICA UNITED STATES CARIBBEAN The Global Leader in Special Economic Zones BUILDING NEW WORLDS

Transcript of Corporate Brochure PDF

CHINAASIA PACIFICEUROPEAFRICAUNITED STATESCARIBBEAN

The Global Leader in Special Economic Zones

BUILDING NEW WORLDS

SPECIAL ECONOMIC ZONES DEFINEDBuilding Fourndations for Economic Growth and Opportunity

THE ISLAMIC REPUBLIC OF AFGHANISTAN & THE CHORD GROUP

INTRODUCTION

make the Chord Group one the world'sleading experts in special economic zones

EARL NIGHTINGALE

“You can measure the opportunity with the same yardstick that measures the risk involved. They go together.”

Over the last two decades, the Chord Group has helped governments around the world attract foreign direct investment, stimulate economic growth, and create knowledge based jobs by developing, marketing and managing “best-of-breed” special economic zones (SEZ).

We help nations build wealth through a full range ofstrategic, operational and technological solutions. Ourproven model for OECD and WTO complaint zonedevelopment and deployment has always achievedpositive and sustainable commercial results for ourclients. We work within the worldwide knowledgeeconomy, operating as “Innovators and Accelerators,” focused on creating zones that promote free trade flow, based around mutually dependent and complementary industry clusters.

Our long-standing relationships with relevantgovernment entities and leading service providersallow the Chord Group to expedite projects. Wekeep abreast of international best practices andadapt them to local market conditions. We establishthe policies, investment structure, legal framework,strategic development, sales and marketingstrategies, operational management, and ongoingstrategic road map to deliver and operate successfulzones.

500 Talented and

Experienced Professionals22 Offices

www.chordgroup.com1

Chord's Current Project: Conversion of military bases into Special Economic ZonesStrategic implementation meeting with President Ghani of Afghanistan, November 2015

A special economic zone (SEZ) is generally defined as:

“a designated geographical area where unrestricted activities of industry, commerce, trade and construction take place, and where the unrestricted flow of goods and services is permitted to the rest of the world.”

An export processing zone (EPZ) is definedas an area in which foreign firms, benefitingfrom special incentives and privileges producegoods for export. They are often industrial estatesoffering customs privileges and financial incentivesto attract foreign investment in export-orientedmanufacturing enterprises.

A free port is SEZ specifically linked to a seaportor airport. Free ports were created to easegovernmental restrictions so that goods can flowfreely. free ports allow the import and export of goodsfree of duty and sometimes taxes, and provideenterprises with financial, tax, investment, andregulatory incentives. banking, trade barriers, andemployment rules are relaxed within the boundariesof a free port. Some free ports have recentlyadded multi-modal cargo transfer to landtransportation systems as a new service option.

Usually, SEZs are territorial enclaves which areoutside a country’s customs zone. In the past 30 years the terminology used to describe what has traditionally been called a “SEZ” has evolvedsignificantly. Some of the more important types of SEZs include the, free zone, free trade zone, the free port and the export processing zone.

A free trade zone (FTZ) is a defined geographic area where the unrestricted flow of trade is permitted. The area can be anywhere within a country. Items that are imported and then exported within the free trade zone are free from customs duties. Typical activities in this zone include transshipment of goods, storage of goods in warehouses, packaging of bulk items into smaller or individual packages, inspection of components, and regional cargo distribution centers.

WHAT IS A SPECIAL ECONOMIC ZONE?

In 1989, there were over 200 export processing zones in operation worldwide, according to the International Labor Office. By 2006, there were 3,500 which employed morethan 66 million people. Although there are successfulexamples of export processing zones on most continents,EPZs have proven to be most successful in the newlyindustrialized countries of Asia.

• Foreign ownership of firms operating within the zone.• Duty free or reduced duty import of capital equipment.• Duty free or reduced duty import of raw materials.• Duty free or reduced duty export of goods processed- within the SEZ to areas outside the customs zone.• Free flow of currency.• Full repatriation of profits.• Fixed-term income tax holiday of company profits within the free zone.

Typical SEZ incentives are:

WHY CREATE A SPECIAL ECONOMIC ZONE?

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The SEZ integrates the region with the global economy by creating goods for export, attracting foreign currency, and providing opportunities for companies outside the zone to trade with international firms.

An SEZ acts to stimulate growth, because the capital, technology and resources introduced into the zone create new job opportunities for local workers and business opportunities for local companies to sell goods to enterprises within the zone. Most often, the activity is driven by foreign direct investment (FDI).

Free zones are developed to take advantage of a country’s comparative advantage in natural resources, existing infrastructure, or labor.

“The entire country must support the development and operation of the SEZs. This support is usually in the form of a strong legal framework for the zone. Government agencies such as customs,immigration, and finance must also be supportive. Early integration of the SEZ into the government’s programs will prevent problems in all stages of development.”

There are two goals behind the development of an SEZ: • Generate economic growth. • Integrate the regional economy with the global economy.

• Government support.• Adequate infrastructure.• Streamlined procedures.• Maximized use of natural resources.• Plan for the future.

SPECIAL ECONOMIC ZONES DEFINED

SEZs are developed around existing infrastructure to reduce the amount of investment required, to support the facilities already in place, and to promote continuing infrastructure development. SEZs of all types are tools used by governments to create areas of concentrated commercial, trade, or industrial activity.

SEZs rely on access to transportation to make them viable. Indeed, it was an airport that caused the development of the first EPZ. For most zones, access to one or more modes of transport is critical for the successful development of the free zone.

Finally, a Special Economic Zone can serve as a region where a country with an economy in transition can liberalize the economy without having to make dramatic changes in laws and tradition throughout the rest of the country.

WHAT MAKESA GOOD SEZ?

Most SEZs are unique because their geographic areas are unique. Therefore, what works in one location may not work in another. However, there are SEZ characteristics that stand out above all the rest in determining the success of a SEZ.

Key characteristics of a successful free zone are:

The entire country must support the development and operation of the SEZs. This support is usually in the form of a strong legal framework for the zone. Government agencies such as customs, immigration, and finance must also be supportive. Early integration of the SEZ into the government’s programs, will prevent problems in all stages of development.

Every successful SEZ has emphasized the importance of providing adequate infrastructure as a key to attracting investment. Transportation, power, water, sewerage, and telecommunications are all important infrastructure requirements.

The most successful SEZs have streamlined customs procedures for handling goods entering the zone. When procedures are streamlined, investors are more readily attracted to the area because they are confident theirgoods will be handled without unnecessary delay. Inthe logistics business, time is money.

Each SEZ analyzed was located in an area with vastly different natural resources. In this context, natural resources can include labor, land, location, minerals,or hydrocarbons. Utilizing the resources of a givenarea to the fullest extent possible is the key to thesuccess of an SEZ.

Planning for the future is necessary for the successful growth of a free zone. Continuous updating of the SEZ plan to anticipate the needs of long term development is crucial. While detailed and comprehensive planning on this scale take times and investment, it ensures that the overall impact of the extensive infrastructure improvements will be positive and have a long lasting value to both the local population (work force) and investors.

GOVERNMENT SUPPORT

ADEQUATE INFRASTRUCTURE

MAXIMIZED USE OF NATURAL RESOURCES

STREAMLINED PROCEDURES

PLAN FOR THE FUTURE

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“The Chord Group works within theworldwide knowledge economy, operating as

‘innovators and economic development accelerators’,creating distinct and valuable business zones

that have financial and trading advantages for the local economy, the zone operator,

and its participants. We are one of theworld’s leading special economic

zone consulting groups.”

EXPERIENCE. DEDICATION. TALENT.

WHO WE ARE

We have a 20-year history of successfully creating some of the best special economic zones in the world. Chord has a unique proprietary system and implementation model that saves our partners years of work and costs.

Our global team of industry-focused experts bring 25 years of operational, management, and executive experience, offering valuable sector-specific insight for our clients.

Our priority is to achieve measurable economic growth and significant FDI in an accelerated time frame, and maintain them for the long term. We are the only group in the world that provides a fixed guarantee to cover these critical goals.

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The group offers a full range of strategic, operational, and technological solutions to help our clients, be they governments, capital markets clients, or the global array of corporate clients. They respond to regulatory demands and changing environments to achieve positive commercial results. There can be no “one size fits all” approach in today’s complex and fast changing markets-we have the practical experience to help governments and organizations exploit the opportunities that change brings. Our goal is to facilitate real competitive advantage.

VALUES

• Improvement• Commitment• Respect• Environment• Quality• People• Innovation.

MISSION

VISION

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To continually learn, grow, and improve ourknowledge and experience in special economiczones, Chord will continue to play a fundamentalrole in the overall economic development andprosperity of individuals, corporate entities, anddeveloping nations around the globe.

To create a universally recognized, state-of-the-art“technology oasis” by facilitating and promotingknowledge-based industries and fostering researchand development within a fully integratedbusiness community.

Our organizational values represent Chord’s essence.Every individual within the organization drives thesevalues with passion and persistence for our continuedsuccess and growth as an organization and for itsindividuals. Our values include:

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Government is encouraged to provide a range of incentives to support our SEZ programs and attract, develop, and sustain economic growth and employment. These concessions and incentives include:

KEY CONCESSION AND INCENTIVES

FULL BUSINESSOWNERSHIP

TAX BENEFITS

DYNAMICCOMMUNITY

BUSINESS GROWTH

COMMUNITY

ROBUST LEGALAND REGULATORYFRAMEWORKS

PROPERTYSOLUTIONS

EFFICIENT SET-UPPROCESSES

CHORD SEZ FEATURES PRACTICAL TENANT BENEFITS

100% foreign business ownership

Full capital repatriation

Own your own business, without the need for a local partner

Move your money freely around the world

0% personal and corporate tax rate for 50 years guaranteed

Invest your resources where it matters the most

We fit our SEZs with the latesttechnology, infrastructure and support

Be a part of our thriving community that supports all types of businesses

Training sessionsBenefit from valuable insights through our Knowledge Series program of monthly educational events and workshops

Connect with your peers and explore new business opportunities at our networking events as part of our sector- specific clubs

Through our international standards, our SEZ provides businesses with a safe and secure environment in whichto operate. so you can trade with confidence

No matter what you need, we have the right solution for you. As your business grows, you can choose to increase your space, too

Networking events

Secure, regulated environment,licensing a full range of businessactivities

Variety of commercial andresidential properties for lease atcompetitive rates

Streamlined issuing of alldocumentation and licenses

Smooth and hassle-free procedures in person and online through the SEZ Free Zone Member Portal, allowing you to focus on developing your business.

KEY BENEFITS FOR GOVERNMENT

BENEFIT INDIRECTBENEFITS

DIRECTBENEFITS

YES

YES

YES

YES

YES

11. ENHANCING TRADE EFFICIENCY OF DOMESTIC FIRMS

YES

YES

YES

YES

YES

YES

10. EXPORT DIVERSIFICATION

9. DEMONSTRATION EFFECT

8. TECHNOLOGY TRANSFER

7. TESTING FIELD FOR WIDER ECONOMIC REFORM

6. SKILLS UPGRADING

5. EXPORT GROWTH

4. GOVERNMENT REVENUE

3. EMPLOYMENT GENERATION

2. FDI

1. FOREIGN EXCHANGE EARNINGS FDI

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KEY SUCCESS CRITERIA

REVENUEANDFINANCIALSERVICES

ESTABLISHSEZ

MARKETSEZ

ESTABLISHA GLOBALBRAND

TAXCONCESSIONS

GLOBALEFFICIENCY

‘JOB, SALES,INCOME’

‘TOP 1% OF ZONES’

‘GLOBALLYCOMPETITIVE’

‘GLOBALCONVERSION’

‘ROUTE TO MARKET’

‘LOGISTICS’

Minimal touchpoints

100% foreignownership

No currency restrictions

Commercialsales and

leasing

Licensing and registration

Land developmentoppurtunities

Trade finance

Asset management

Exchangetraded

products

Exchangetraded funds

0% personalincome tax

0% importor re-export

duties

No restriction oncapital repatriation

No restriction on foreign talent

or employees

Ability to mortgage your premises to a bank or financing

company

Service level with government to agree

5 days company establishment and

visas

0% corporate taxfor 50 years

(a concession that isrenewable)

Quality

Distribution

Value

Price

Promotion

Presence

Global reach

Seamless flow

Strategic future fit

Market intel /understanding

Revenue / capital gain

Visibility throughsystems and

processes

Network reach

Quality ofinfrastructure

Consistentservice delivery

Efficiency and competency

KEY REQUIREMENTS FOR CHORD SEZ

Onsite customs

BUILDING SUCCESSFUL ZONES

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1. Highly secured facilities.2. Cutting-edge infrastructure.3. Sound, new regulatory environment.4. New and dedicated government-appointed

administrative authority focused on fast-track services.5. Full zone management.6. Competitive and business-focused governance.7. Simplified business process compared to

traditional establishment process in-country.8. Dedicated operational team and centralized

SEZ authority.

Chord always provides fovernment and relevantstakeholders with a full economic impact analysis (EIA). which provides an evaluation of the economic impacts of each SEZ project, how it benefits government, citizens, and the wider community.

• Proven protection of intellectual property.• Dynamic international community.• Opportunities for business interaction and networking.• Opportunities for channel and market development.

ECONOMIC IMPACT ANALYSIS

LINKAGE, EXTERNALITIES

• Existing local businesses will benefit from new customers and new sales opportunities by acting as suppliers and providing support services to SEZ businesses and employees.• Local contractors and labor will be employed

throughout each of the development phases ofthe project.

• Tenants are limited to specific industries,which offer the greatest impact on the greatereconomy and unemployment rates. Also,tenants will not trade within the host country,and all business (unless granted specificexceptions) will be carried out internationallyso as not to compete with local businesses.

BENEFITS FOR

LOCAL BUSINESSES

Each Chord SEZ is governed by a specialeconomic zone authority – a new, streamlined,regulatory authority specifically established underproposed special economic zone law. Thisguarantees the efficiency of each SEZ whileproviding a wealth of globally competitiveincentives designed to attract “futureproof” industries to the host country.

REGULATIONS

The Chord Group recommends that existinginfrastructure be set aside to provide temporaryaccommodation for each SEZ. This will enablethe SEZ to secure immediate key wins byattracting new companies within (usually) lessthan three months. This dual use policy will also addimmediate government revenue.

INITIALPROJECT PHASE

The Chord Group traditionally builds approximately1-5 million square feet for each special economic zone.

DEVELOPMENT

Our evidence-based, logical, and participatoryapproach to successful zone launches is detailed inour proprietary flow chart model. This is shown onthe next page. Chord divides each SEZ project intopractical stages that ensure clear gateway points,enable client participation and feedback, andestablish a very clear rationale for theproject development.

Each SEZ will include office accommodation,warehousing, and industrial units for businesses inhigh-growth industries. The SEZs will also providetenants and their employees with a unique set ofconcessions granted exclusively by government fora period of up to 50 years.

Each SEZ will add to the existing transportationfabric of the host country, as well as its infrastructureassets, to develop a best of breed SEZ modelcentered upon new knowledge-based industries.

IMPLEMENTATION

KEY ATTRIBUTESOF A CHORD SEZ

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REGIONALDEVELOPMENTFRAMEWORK

MASTERPLAN& DETAILED

PLAN

TECHNICALSTRATEGIES

PHASING &DELIVERY

STRATEGIES

Structure

Capacity

Timing Requirements

Roles and Responsibilities

Economic Trends

Land and Real Estate

Special Economic Zone Plan

Current Projects

Industrial Growth

Economy Finance and Investment

Private Sector Partners

Public Sector Partners

Community and Special Interest Groups

Special Economic Zone Law

Prepare Underling Regulations

Issue Policy and Operating Guidelines

Help to Form Special Economic Zone

Road

Rail

Air

Dry Ports

Logistics

Planning

Financing

SEZ SCOPINGDATA GAP ANALYSIS

STUDY BRIEFS FOR INTEGRATEDRESEARCH WORKSTREAMS

INTEGRATEDASSESSMENT

MODEL

IR DATAANALYSIS

ASEZ BASELINERefined Objective & Project Vision

BaselineAnalysis

REGIONAL DEVELOPMENTFRAMEWORK

STRATEGICMASTERPLAN

OPTIONS

ASSESSMENTCRITERIA

Vision & StrategicMasterplan Options

FINALIZATION OF PREFERREDSEZ MASTERPLAN OPTIONS

DETAIL DELIVERY STRATEGYHIGH LEVEL COSTING AND STRATEGY FREEZE

APPROVAL OF ALL LAWS, REGS, AND ASSOCIATED STRATEGIES

OPERATION, MANAGEMENT,AND EXPANSION OF ASEZ

IT/Communications

Water Waste

Energy

Utility/Infrastructure

Socail Infrastructure

Skills Development

Education

Health

Topography and Hydrology

Geotechnical/Ground Conditions

Resources

Climate

Heritage/Archeaology

Environment and Ecology

Planning Policy and Regulation

Housing

Urban Transformation

Master Planning Concepts

Land use - Industrial, Commercial, Mixed Use

Planning and Development

Transport and Logistics

Market and Economy

Regional Economic Priorities

ASSETS & RESOURCES

Organization and Processes

Economy and Investment

Law and Regulation Draft

Potential Partnership with others

Implementation Approaches

Sustainability

Communication and Consultation

Communication and Media

Consulation Processes and Forums

Stakeholder Input and Engagement

Governance

SEZ Economic Sectors

CHORD'S APPROACH

EXPERTISE

1. Provide end-to-endmanagement of building andinfrastructure projects, fromconcept to completion.

2. Manage of MEPscope of works related tobuilding and infrastructuredevelopment projects.

3. Liaise with consultants,contractors, and regulatoryauthorities throughout theproject development life cycle.

4. Oversee projects throughoutlife cycle to improve projectmanagement services andensure best quality standards.

1. Manage pre- and post-salesand/or leases of SEZ andfixed assets.

2. Ensure and maintainsustainable relationships withprivate investors and otherstakeholders.

3. Provide technical administrationof customer relationshipmanagement (CRM) systems,and control property andproperty unit inventories tosupport sales and leasing ofunits.

1. Manage master planprojects, from design brief tofinal stage.

2. Operate and maintain ofChord’s SEZ infrastructurefacilities and assets to ensurethe infrastructure is wellmaintained.

3. Review and facilitate allcommunications and work withthe appointed regulator.(special economic zone authority)

4. Ensure all Chord SEZs arewithin the top ten one percentof all SEZs in the world.

PROJECT MANAGEMENT LAND MANAGEMENT ENGINEERING OPERATIONS

Design and Construction

Leasing

SEZ FeasibilityStudy

Master Planning

Legislation

Policy Operating Framework

Project Management

SEZ ZoneSoftware

Branding/Marketing

Commercial Fit

SEZ SupportServices

PropertyHandover

SEZ PropertyManagement

FacilityManagement

Institutional Structures

SEZ Development

WHAT WE DO

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CAPITAL PLANNING FRAMEWORKThe Chord Group understands the capital implications of their SEZ activities. The efficient use of capital is embedded within our businesses.

The below diagram shows our framework for capital planning, which encompasses the issues that Chord will address.

LEVEL Core Elements of Capital Planning

Board and SeniorManagement

Tactical RiskManagement

Analytical RiskManagementActivities

• Development of business plan• Definition of overall economic capital target• Setting of tolerance for risk• Specification of required returns• Allocation of risk appetite to business lines• Definition of risk limits for business lines

TOP-DOWN RISK MANAGEMENT REPORTS

RISK AND CAPITAL MANAGEMENT BY BUSINESS LINES

Asset andLiability

Management

CreditRisk

MarketRisk

LiquidityRisk

OperationalRisk

OtherRisks

• Risk aggregation• Risk allocation• Monitoring of overall risk in

comparison with capital• Performance measurement

• Risk identification• Risk measurement• Individual risk monitoring• Reporting

BOTTOM UP RISK MANAGEMENT

GUIDELINES

INT

ER

NA

L CO

NT

RO

L RE

VIE

W

Another key step in implementing Chord’s riskmanagement strategy is to select the approach anddegree of complexity of the economic capital riskmanagement systems that would be appropriate tothe business needs and risk profiles of each chosensite.

Important elements of our risk management strategyinclude the specifications for the total economiccapital target and our investors appetite for risk. Thelatter directly influences Chord’s external status,because a higher risk appetite and, consequently, ahigher assumed total risk lead to a higherprobability of default.

After we prepare the business and implementationstrategy for each SEZ, the next set of deliverablesincludes detailed risk management strategies, such asspecifications for which risks to assume, identify, andmeasure. We also provide the know-how to monitor,report, and manage these risks. These guidelines willbe communicated clearly to all stakeholders.

The figure on the right demonstrates Chord’s riskmanagement systems approaches and degrees ofComplexity.

Small to medium-sized Capex with onemajor business line

for a site

Medium-sizedCapex with

several businesslines

Large Capex fornationally critical

sites forconglomerates

INTERMEDIATEAPPROACH

Parametricdistribution

Proxies based

Simplisticaggregation

Quick results

TOP-DOWNAPPROACHEmpirical approach

Benchmark basedPeer assessment of economic capital

Quick results

Uncertainty

EC

ON

OM

IC C

AP

ITA

L

GOOD

POOR

LOW HIGH

BOTTOM-UPAPPROACH

Full simulationapproach

Sophisticatedmethodology

Time consuming

Data requirements

Model risk

• Specification of framework for risk assessment Implementation of consistent incentive system

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EVALUATION OF CHORD’S PERFORMANCE

Adding value to a host country's economy by providing integrated business solutions,to attract regional and international investors looking for a unique business platform,through service excellence in a customer centric business environment, by dedicated,competent and loyal people.

Creating the top 1% of global Special Economic Zones

OUR VISION

OUR MISSION

Financial Customer Customer Process Learning & Growth

Optimize cost to attainfinancial efficieny

whilst sustaining value

Increase diversificationpaths to inrease profits

and sustain liquidity

Capitalize on strong standing & use

Chord’s brand byattracting companies

from primary markets &from explaring newsecondary markets

Promote the SEZ as anew branding statement

Increase profitabilitythrough regulatory

arbitrage

Build a motivatedcompitent workforcewith passion to serve

the customers and the community

Develop added-value services to maximisevalue for money for

tenants

Enhance quality standards of

premises to provide a unique life experience

for tenants

Promote a leadershipthat is dedicated to

excellence

Build and manage acustomer relationshipbased on involvementtransparency, & strong

two-way communication

Capitalize on excellenceculture to increase

efficiency & effectivenessof operations

Persist in building andmanaging explicit and

tact knowledge

Sustain a culture ofservice excellence,

driven by highstandard andgovernance

Capitalize on informationand communication

technology to enhanceservice provision and

reduce risk

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PERFORMANCE...GUARANTEED

HOW CHORD IS HELD ACCOUNTABLE

STRATEGIC GOALS, CRITICAL SUCCESS FACTORS ANDKEY PERFORMANCE INDICATORS

OPTIMIZE COST TO ATTAIN FINANCIAL EFFICIENCY WHILE SUSTAINING VALUE

Chord Department

% of key OPEX costs to revenue

STRATEGICGOAL #1

Critical Success Factor: Prioritisation and alignment of manpower initiatives

KPI # Key Performance Indicator

Chord DepartmentKPI # Key Performance Indicator

Chord DepartmentKPI # Key Performance Indicator

1.11.2

1.3

1.4

2.1

2.2

2.3

2.4

2.5

4.1

4.2

4.3

4.4

4.5

% of manpower cost to revenue

% optimization of operational costs of buildings per sq. ft.

% savings in major projects through value engineering

Interiors and Facility Management

Projects

Human Capital

Finance

3.1

3.2

3.3

INCREASE PROFITABILITY THROUGH EXISTING SOURCES

Critical Success Factor: Sustain the exisiting revenue

STRATEGICGOAL #2

STRATEGICGOAL #3

Chord DepartmentKPI # Key Performance Indicator

STRATEGICGOAL #4

Finance

Finance

Finance

Finance

Finance

Communication Sales

Marketing and Corporate

Tenant’s Employee Affairs Leasingand Licensing

Administration, Compliance andProcurement

Sales

% increase in net profit

Ensure optimal EBID is met

% revenue from new, innovative products

Number of new innovative products

% increase in revenue from existinginfrastructure

Minimum achieved rate of return on projects orinvestments

% increase in profits from diversified investmentsunrelated to the zone’s core business

% increase in profits from diversified investments related tothe zone’s core business

Critical Success Factor: Support of higher leadership committee on proposed diversifications

CAPITALIZE ON THE INFRASTRUCTURE ASSETS TO ATTRACT COMPANIESFROM PRIMARY MARKETS AS WELL AS NEW MARKETS

INCREASE DIVERSIFICATION PATHS TO INCREASE PROFITS AND SUSTAINLIQUIDITY

Critical Success Factor: Study and identify target markets

Sales

Sales

Sales

Sales

Marketing and CorporateCommunication

Meet criteria for leads converted into sales

Meet criteria for companies from target markets

Meet criteria for sales leads from target markets

Meet criteria for newly registered companies

Number of new multinational companies

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HOW CORD IS HELD ACCOUNTABLE

Chord DepartmentKPI # Key Performance Indicator

5.1

5.2

5.3

5.4

6.1

6.2

6.3

6.4

6.5

6.6

6.7

7.1

7.2

7.3

7.4

7.5

7.6

7.7

STRATEGICGOAL #5

Chord DepartmentKPI # Key Performance Indicator

Chord DepartmentKPI # Key Performance Indicator

STRATEGICGOAL #6

STRATEGICGOAL #7

8.1

8.2

8.3

Chord DepartmentKPI # Key Performance Indicator

STRATEGICGOAL #8

Marketing and CorporateCommunications

Human Capital

Human Capital

Marketing and CorporateCommunications

Enhance society’s perception of the SEZ globally

Meet indirect and induced minimum economicbenchmarks

% of host country nationals recruited by zonefor its companies

Member of CSR activities conducted

LAUNCH GLOBAL MARKETING AND RECRUITING INITIATIVES

Customer Relations

Customer Relations

Customer Relations

Customer Relations

Customer Relations

Customer Relations

Leasing and Licensing

Number of knowledge sessions for government, stakeholders,and customers on services, procedures, and systems

Number of customer interaction events

% closure of issues raised from leadership visit to customers

Number of joint initiatives with customers

% implementation of key account manager initiative

% customer turnover rate

% space lost from total occupied area

Critical Success Factor: Enhance a customer-focused culture to increase customer base

Critical Success Factor: Maximize reach and influence

BUILD AND MANAGE A CUSTOMER RELATIONSHIP BASED ON INVOLVEMENT,TRANSPARENCY, AND STRONG, TWO-WAY COMMUNICATION

SUSTAIN EXCELLENCE DRIVEN BY HIGH STANDARDS AND GOVERNANCE

Critical Success Factor: Comprehensive customer relationship management (CRM)

Customer Relations

Customer Relations

Customer Relations

Strategy and Excellence

Strategy and Excellence

Customer Relations

Customer Relations % implementation of a comprehensive CRM system

% increase in “upsell” score

% of services provided to tenants covered with internal OLAwithin departments and external SLA with service providers

% of implementation for a dedicated call center

% of services completed within the set time frame

% of services with defined time for delivery – internally

% of customer satisfaction

DEVELOP ADDED-VALUE SERVICES TO MAXIMISE VALUE FOR MONEY FORTENANTS

Number of added-value services for customers(internally or based on customer requests)

Administration, Compliance andProcurement

Administration, Compliance andProcurement

Administration, Compliance andProcurement

Number of services developed, linked to our location

Number of enhancements to existing business facilities forcustomers

Critical Success Factor: Understand the customers’ needs and expectations

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OUR IMPLEMENTATION APPROACH:PROVEN & TESTED FOR OPTIMAL OUTCOMES

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CHORD'S PHASED DELIVERY

PHASE AND RESULT DELIVERABLES• Prepare and present feasibility study to determine the socio-economic benefits for government, all stakeholders, investors, developer, and tenants.

• Draft, negotiate and issue an MOU for the concessions and proposed development with government.

• Devise, design, and present the SEZ master plan. The master plan will address the overall design/build concept that includes urban design, landscaping, infrastructure, service provision, circulation, present and future land use, and built form. It will provide a structured approach and create a clear framework for developing the SEZ. The sustainability strategies will recommend and integrate ways to reduce negative impacts on the environment and on the health and comfort of our tenants, thereby reducing the consumption of non-renewable resources, minimizing waste and creating a healthy, productive business community.

• Introduce key strategic SEZ partners and formulate joint ventures as required and desired.

• Conceptualize, build, and sensitize financial projections and budgets.PROJECT BUDGETING AND FINANCIAL ANALYSIS

STRATEGIC INITIATIVES• Conceptualize, build, and sensitize financial models to analize potential land acquisitions and sales.

• Assist in creating and coordinating project schedules and maintaining the process for project team adherence and accountability to time lines.

SCHEDULE MANAGEMENT

• Compile variance and other reports to track the performance of the project.PERFORMANCE REPORTING

PHASE 1 (A) FEASIBILITYSTUDY

PHASE 1 (B) MEMORANDUMOF UNDERSTANDING

PHASE 2 (A) MASTER PLANAND SUSTAINABILITYSTRATEGIES DEVELOPMENT

PHASE 2 (B) PARTNERS &RELATIONSHIPS

PHASE 3 VALUATION,PROJECTIONS, ANDFINANCIAL ANALYSIS

PHASE 1 (C) INSTITUTIONALSTRUCTURES

• Develop and refine full valuation models and returns on investment to allow accurate assessment of any proposed investment and the mechanisms to reduce risk.

• Provide and undertake presentations and negotiations, and secure informal approval from key stakeholders for the proposed development.

• Develop and update the master development budget, including monthly and quarterly cash flow forecast/outlook through project completion.

• Perform research and market studies to assess market conditions on metrics like construction costs, sales pricing, real estate and valuations, etc.

• Prepare proposals and presentations for potential strategic partnerships and JV’s.

• Assist in preparing investment memos or other documents for SEZ's management committee.

• Provide periodic reports on project progress or key issues and findings.

• Prepare and submit regular periodic investor and project reports.

• Assist in developing and maintaining good working relationships with development partners to achieve mutual goals.

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PHASE AND RESULT DELIVERABLES• Draft, negotiate and finalize definitive agreement between government and Chord. The Chord definitive agreements have been refined over the years with many governments and provide a streamlined document that is well-balanced and comprehensive.

PHASE 4 DEFINITIVEAGREEMENT

• To be relied upon by Chord Group and government to justify the concessions and proposed legislation. Economic impact simulations will predict the economic effects upon the regional and state economy by virtue of the SEZ. The EIA will leverage “counterfactual” simulations as well as traditional policy modeling and predict the economic impact of a significant SEZ policy change upon the state economy.

PHASE 5 ECONOMIC IMPACTANALYSIS (“EIA”)

• Introduce proposed new legislation for all stakeholders, with a focus on government and civil service. This will include new and extensive laws that will be drafted and prepared for presentation and issue to government in conjunction with the existing attorneys selected by the host country.

PHASE 6 LEGISLATION

• Introduce a new government special economic zone authority (SEZA) to regulate businesses in the zone.

PHASE 7 GOVERNANCEAND SEZ AUTHORITY

• Provide all SEZ policy frameworks, which will be comprised of proven and logical government and SEZ policy structures, and internationally recognized policy documents, processes, and policies that enable the SEZ to be managed-effectively, profitable, and to meet the needs of local and international investors, stakeholders, and government.

PHASE 8 POLICY ANDOPERATING FRAMEWORKS

PHASE 9 BRAND, MARKET, SELL, AND LEASE

• As required, manage all operations of SEZ to maximize return on investment for all stakeholders, including facilities management, government relations, international JVs, and financiers.

PHASE 10 MANAGE

• Introduce, facilitate, and manage sales and leasing process, including CRM, sales staff, and channel partners.

• Develop a comprehensive, well-researched, and tested branding platform for the SEZ.• Develop, present, and execute a comprehensive marketing program to generate interest and leads for the sales team.

• Identify and build effective sales offices with visual models, presentation tools, and collateral materials for prospective tenants.

• Introduce of key partners from international SEZs.

• Obtain firm commitments and execute leases.

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OFFICESThe Chord Group has offices around the globe, with additional representation via our network of partner firms in countries where there is no physical corporate office. Currently, physical office locations are:

CHINA

27 Floor, Ocean InternationalPlaza, C 5 Jinghua South Street BeijingTel:1-855-233-5500 x6fax:+86 21 628 8994email: [email protected]

1319, Building 2, Apollo HotelWuyizhong RoadFuzhou CityTel:+1-855-233-5500 x6Tel:+86 21 5102 189email: [email protected]

10-D Xinsha Road Futian District Shenzhen, GuangdongTel:+1-855-233-5500 x6fax:+86 21 628 8994email: [email protected]

FUZHOU GUANGZHOU

902 District A, Shengda PlazaQuanxiu Road, Quanzhou CityTel:+1-855-233-550 x6email: [email protected]

2310 Jing’an Zhonghua Building1701 West Beijing RoadShanghaiTel:1-855-233-5500 x6email: [email protected]

B 303, 3 Shixia NorthSouthern International PlazaFutian District, ShenzhenTel:+1-855-233-5500 x6email: [email protected]

3402 B World Trade MansionXiahe RoadXiamenTel:+1-855-233-5500 x6fax:+86 21 5102 1891email: [email protected]

2307, Building AFutian MansionChouzhou North Road, YiwuTel:+1-855-233-5500 x6fax:+86 579 8582 8157email: [email protected]

Corporation Hong Kong19/f, Two International FinanceCentre8 Finance Street, Hong KongTel:+1-855-233-5500 x6email: [email protected]

18th Fl, World Trade Centre II Jl.Jend. Sudirman Kav. 29-31 Jakarta.12920 – IndonesiaTel:+1-855-233-5500 x6fax:+62 21 2939 2001email: [email protected]

20 Martin Road#05-02 Seng Kee BuildingSingaporeTel:+1-855-233-5500 x6email: [email protected]

SINGAPOREINDONESIAHONG KONG

ASIA PACIFIC

BEIJING

QUANZHOU SHANGHAI SHENZHEN

XIAMEN YIWU

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AFRICA

Chord Group SA4th Avenue BostonBellville, Cape TownSouth AfricaTel:+1-855-233-5500 x4email: [email protected]

Centurion Business ParkDemocracy WayCape Town,South AfricaTel:+1-855-233-5500 x4email: [email protected]

UNITED STATES AND CARRIBEAN

HSBC Centre, West Bay RoadGeorge Town, Grand CaymanP. O. Box 10315, Grand CaymanKY1-1003, Cayman IslandsTel:+1-855-233-5500 x3email: [email protected]

3401 North Miami AvenueSuite 239Miami, FL 33127United States of AmericaTel:+1-855-233-5500 x3email: [email protected]

Corporation China Washington1155 F Street NW, Suite 1050Washington 20002DC U.S.ATel:+1-855-233-5500 x3email: [email protected]

BELVILLE CAPETOWN

GRAND CAYMAN MIAMI WASHINGTON DC

EUROPE

2nd Floor 145 - 157St. John StreetLondon EC1 4PWUnited KingdomTel:+1-855-233-5500 x4email: [email protected]

Corporation China Russia521 , Block C, 10Presnenskaya Naberezhnaya,Moscow, 123317 RussiaTel:+1-855-233-5500 x4email: [email protected]

Via Ferruccio Pelli13/6900 LuganoSwitzerlandTel:+1-855-233-5500 x4email: [email protected]

LONDON MOSCOW SWITZERLAND

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“The Chord Group is the largest developerof knowledge-based special economic zonesin the world. With over 25 years’ experience,

22 offices around the globe, andover 500 personnel, we create the top

one percent of special economic zones in the world.”

CHINA / ASIA PACIFIC / EUROPE / AFRICA / UNITED STATES & CARIBBEAN

www.chordgroup.com