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

of 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 of

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

openness and

inclusiveness

a community

of

responsibility

a community

of shared

interests

a community

of 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 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

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 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

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 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!