One Belt One Road Demystified
March 15, 2017
Manford Kwan
President, HKCBA Calgary
One Belt, One Road Background
Current Status and Projects
OBOR Perspectives
Q&A
Agenda
One Belt One Road (OBOR)
President Xi Jin Ping
Announced in Sept 2013
1 - One Belt
Silk Road Economic Belt
2 - One Road
21th century Maritime Silk Road
Belt and Road Initiative
65 Countries
4.4 Billion people
USD$2.5 Trillion
Annual trade By 2025
$1 Trillion = $1,000,000,000,000
1
2
Why OBOR
• Development of new Trade
partners
• Leverage Foreign Reserve
• Internationalization of RMB
• Energy Security
• Connectivity and cooperation – Asia, Europe,
Middle East and Africa
Asia Infrastructure Investment Bank (AIIB)
AIIB – January 16, 2016 (Beijing)
57 founding members
- 37 Asia and 20 other regions
President Jin Liqun
USD $100 Billion
In 2016 -
9 projects approved
USD $1.7Billion invested
75% are in collaboration
with World Bank and Asian Development Bank
www.aiib.org
Canada application – September 2016
Silk Road Funds
Silk Road Fund – 2015
President Jin Qi
USD $40 Billion
Public-Private Partnership (PPP)
3 investments
Karot Hydroelectric project (USD 1.65 Billion)
Rail project between Nariobi and Mombasa
Acquistion of 9.9% of the Yamal LNG project in Russia
www.silkroadfund.com.cn
One Belt, One Road Background
Current Status and Projects
OBOR Perspectives
Q&A
Agenda
Silk Road Economic – Six Corridors
3
2
1
4
5
6
China-Pakistan Economic Corridor
Kashgar to Gwadar (3000km)
CPEC - USD$46B in place
Karot Hydropower project
Sea Port of Gwadar
• USD$1.15B investment
• COPHC
• Build and Operate to 2059
• Operational in Nov 2016
• Bypass the straits of Malacca
COPHC – China Oversea Port Holding Company
Rail Projects
Freight traffic
Cross-border rail
Railways – 15 days
Sea – 30 to 40 days
Air – expensive
Rail is more efficient
for Western provinces
China – Eurasian Rail services
2014 YiWu- Madrid
2015 Changsha to Duisberg
2016 Zhejiang to Tehran
2017 YiWu - London
European projects
Railroad projects
Belgrade-Budapest HS Rail
UK
• First EU country to join AIIB
• Infrastructure project Alliance
• London – financial service sector
COSCO – China Ocean Shipping Company
Greece – Sea Port of Piraeus
• USD$4.3B investment
• COSCO
• Modernize and operate
Terminal 2 and 3
• Acquired 51% of PPA
Asian projects
MCKIP – Malaysia China Kuantan
Industrial Park
Kunming-KL-Singapore Rail Link
Malaysia - USD$7.8B
• Straits of Malacca
• MCKIP industrial park
• Halal food to Chinese Muslim
Jakarta – Bandung HSR
USD$5.1B – 150KM
Philippines
USD$11.2B under preliminary
Agreement
OBOR – Status and Projects
USD$900 billion worth of projects underway or in detailed planning stage
http://fortune.com/china-belt-road-investment/
One Belt, One Road Background
Current Status and Projects
OBOR Perspectives
Q&A
Agenda
Investors
Country perspective
• Political stability
• Infrastructure projects
• OBOR Economic Growth
OBOR projects
• Multinational companies
• Suppliers or EPC
Chinese Enterprises
EPC – Engineering Procurement Construction
SME
Technology/Product company
Source of Funding – AIIB, ADB, WB
Find a good local partner
• Tap into the local end user
• Tap into the bidders
Find a Chinese partner
• Chinese vertical supply
• Tap into the Chinese EPC
• Domestics market
Hong Kong Trade Development Council
http://beltandroad.hktdc.com
September 11, 2017 - Hong Kong
One Belt One Road Demystified

One Belt One Road Demystified

  • 1.
    One Belt OneRoad Demystified March 15, 2017 Manford Kwan President, HKCBA Calgary
  • 3.
    One Belt, OneRoad Background Current Status and Projects OBOR Perspectives Q&A Agenda
  • 4.
    One Belt OneRoad (OBOR) President Xi Jin Ping Announced in Sept 2013 1 - One Belt Silk Road Economic Belt 2 - One Road 21th century Maritime Silk Road Belt and Road Initiative 65 Countries 4.4 Billion people USD$2.5 Trillion Annual trade By 2025 $1 Trillion = $1,000,000,000,000 1 2
  • 5.
    Why OBOR • Developmentof new Trade partners • Leverage Foreign Reserve • Internationalization of RMB • Energy Security • Connectivity and cooperation – Asia, Europe, Middle East and Africa
  • 6.
    Asia Infrastructure InvestmentBank (AIIB) AIIB – January 16, 2016 (Beijing) 57 founding members - 37 Asia and 20 other regions President Jin Liqun USD $100 Billion In 2016 - 9 projects approved USD $1.7Billion invested 75% are in collaboration with World Bank and Asian Development Bank www.aiib.org Canada application – September 2016
  • 7.
    Silk Road Funds SilkRoad Fund – 2015 President Jin Qi USD $40 Billion Public-Private Partnership (PPP) 3 investments Karot Hydroelectric project (USD 1.65 Billion) Rail project between Nariobi and Mombasa Acquistion of 9.9% of the Yamal LNG project in Russia www.silkroadfund.com.cn
  • 8.
    One Belt, OneRoad Background Current Status and Projects OBOR Perspectives Q&A Agenda
  • 9.
    Silk Road Economic– Six Corridors 3 2 1 4 5 6
  • 10.
    China-Pakistan Economic Corridor Kashgarto Gwadar (3000km) CPEC - USD$46B in place Karot Hydropower project Sea Port of Gwadar • USD$1.15B investment • COPHC • Build and Operate to 2059 • Operational in Nov 2016 • Bypass the straits of Malacca COPHC – China Oversea Port Holding Company
  • 11.
    Rail Projects Freight traffic Cross-borderrail Railways – 15 days Sea – 30 to 40 days Air – expensive Rail is more efficient for Western provinces China – Eurasian Rail services 2014 YiWu- Madrid 2015 Changsha to Duisberg 2016 Zhejiang to Tehran 2017 YiWu - London
  • 12.
    European projects Railroad projects Belgrade-BudapestHS Rail UK • First EU country to join AIIB • Infrastructure project Alliance • London – financial service sector COSCO – China Ocean Shipping Company Greece – Sea Port of Piraeus • USD$4.3B investment • COSCO • Modernize and operate Terminal 2 and 3 • Acquired 51% of PPA
  • 13.
    Asian projects MCKIP –Malaysia China Kuantan Industrial Park Kunming-KL-Singapore Rail Link Malaysia - USD$7.8B • Straits of Malacca • MCKIP industrial park • Halal food to Chinese Muslim Jakarta – Bandung HSR USD$5.1B – 150KM Philippines USD$11.2B under preliminary Agreement
  • 14.
    OBOR – Statusand Projects USD$900 billion worth of projects underway or in detailed planning stage http://fortune.com/china-belt-road-investment/
  • 15.
    One Belt, OneRoad Background Current Status and Projects OBOR Perspectives Q&A Agenda
  • 16.
    Investors Country perspective • Politicalstability • Infrastructure projects • OBOR Economic Growth OBOR projects • Multinational companies • Suppliers or EPC Chinese Enterprises EPC – Engineering Procurement Construction
  • 17.
    SME Technology/Product company Source ofFunding – AIIB, ADB, WB Find a good local partner • Tap into the local end user • Tap into the bidders Find a Chinese partner • Chinese vertical supply • Tap into the Chinese EPC • Domestics market
  • 18.
    Hong Kong TradeDevelopment Council http://beltandroad.hktdc.com September 11, 2017 - Hong Kong