Vincent Lingga
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The Jakarta Post
Hong Kong | Sat, June 30 2018 | 02:39 am
Massive infrastructure project: Business delegates and visitors listen to speakers during the third Belt and Road Initiative (BRI) summit in Hong Kong on Thursday. More than 100 infrastructure projects are under construction in 36 countries along the BRI route stretching from Asia to Europe, says Ning Jizhe, the vice chairman of China’s National Development and Reform Commission. (JP/Vincent Lingga)
Massive infrastructure project: Business delegates and visitors listen to speakers during the third Belt and Road Initiative (BRI) summit in Hong Kong on Thursday. More than 100 infrastructure projects are under construction in 36 countries along the BRI route stretching from Asia to Europe, says Ning Jizhe, the vice chairman of China’s National Development and Reform Commission. (JP/Vincent Lingga)
The Thai official and business delegation, led by Deputy Prime Minister Somkid Jatusripitak, signed several agreements with Hong Kong companies for renewable energy, tourism and smart city development projects worth US$3 billion during the third Belt and Road Initiative (BRI) summit on Thursday.
Though overshadowed by negative media reports over the past few weeks on the controversy surrounding BRI infrastructure projects in several South and Southeast Asian countries, the summit and exhibition attracted more than 5,000 business and official delegates from 55 countries, including Indonesia.
Ning Jizhe, vice chairman of China’s National Development and Reform Commission, told the meeting that more than 100 infrastructure projects were under construction in 36 countries along the BRI route stretching from Asia to Europe.
“The BRI program has really been picking up strong momentum almost five years after its launch,” Carrie Lam, chief executive of the Hong Kong Special Administrative Region noted in her opening speech.
The BRI was launched by President Xi Jinping in September, 2013 to build a network of overland road and rail as well as maritime routes, oil and natural gas pipelines and other infrastructure projects in 65 countries from Central China through South, Southeast and Central Asia and Europe.
None of the 80 government and business leaders, who shared their views on the BRI infrastructure projects at the plenary meetings and concurrent thematic forums, directly reacted to the reported complaints about the lack of local participation and too dominant role of Chinese companies and workers in the implementation of BRI projects.
But the theme of the summit, “collaborate for success”, seemed designed to address the complaints, conveying the message that BRI project implementation needs to involve more local companies and workers and use local materials to convince people on the benefit of BRI’s programs.
In contrast to the first BRI summit in Beijing in May 2017, the third BRI summit was organized by the government of the Hong Kong Special Administrative Region and the Hong Kong Trade and Development Council (HKTDC). The conference also arranged dozens of investment and business matching and project pitching sessions.
“Local participation, the sharing of benefits and high quality work are key to the smooth, sustainable implementation of infrastructure projects,” asserted Liu Qitao, chairman of China Communications and Construction Company, which is building many BRI projects.
A change of government in a host country would not affect infrastructure projects if the projects generated mutual benefits and were properly planned and designed with high economic viability, added Liu in response to a question about the new Malaysian government’s plan to review Chinese-funded projects.
HKTDC chairman Vincent HS Lo noted that managing risk and debt, ensuring mutual benefit, cooperating with local companies and local worker involvement are the main challenges of BRI projects.
Bank and insurance executives speaking at the plenary and thematic sessions shared their views that infrastructure investment is very complex, involving strategic planning, technical assessment, feasibility studies, deal structuring, financial and tax planning, financing, project management and risk control.
According to the Hong Kong International Arbitration Centre, the number of cases related to BRI projects rose by over 70 percent to 125 last year as a large number of Chinese companies rushed overseas to implement BRI projects in countries with different regulations, business landscapes and cultures.
During the summit Hong Kong official and business leaders campaigned to leverage Hong Kong’s strength of being the most complete platform for fundraising, a regional logistics hub for sea and air cargo and a conduit for investment between mainland China and the rest of the world.
Most speakers agreed that even though the BRI primarily and initially aimed at enhancing connectivity for investment and trade, it goes beyond these areas. Physical connectivity will create a virtuous cycle to eventually expand and deepen economic, social and cultural connectivity.
Though overshadowed by negative media reports over the past few weeks on the controversy surrounding BRI infrastructure projects in several South and Southeast Asian countries, the summit and exhibition attracted more than 5,000 business and official delegates from 55 countries, including Indonesia.
Ning Jizhe, vice chairman of China’s National Development and Reform Commission, told the meeting that more than 100 infrastructure projects were under construction in 36 countries along the BRI route stretching from Asia to Europe.
“The BRI program has really been picking up strong momentum almost five years after its launch,” Carrie Lam, chief executive of the Hong Kong Special Administrative Region noted in her opening speech.
The BRI was launched by President Xi Jinping in September, 2013 to build a network of overland road and rail as well as maritime routes, oil and natural gas pipelines and other infrastructure projects in 65 countries from Central China through South, Southeast and Central Asia and Europe.
None of the 80 government and business leaders, who shared their views on the BRI infrastructure projects at the plenary meetings and concurrent thematic forums, directly reacted to the reported complaints about the lack of local participation and too dominant role of Chinese companies and workers in the implementation of BRI projects.
But the theme of the summit, “collaborate for success”, seemed designed to address the complaints, conveying the message that BRI project implementation needs to involve more local companies and workers and use local materials to convince people on the benefit of BRI’s programs.
In contrast to the first BRI summit in Beijing in May 2017, the third BRI summit was organized by the government of the Hong Kong Special Administrative Region and the Hong Kong Trade and Development Council (HKTDC). The conference also arranged dozens of investment and business matching and project pitching sessions.
“Local participation, the sharing of benefits and high quality work are key to the smooth, sustainable implementation of infrastructure projects,” asserted Liu Qitao, chairman of China Communications and Construction Company, which is building many BRI projects.
A change of government in a host country would not affect infrastructure projects if the projects generated mutual benefits and were properly planned and designed with high economic viability, added Liu in response to a question about the new Malaysian government’s plan to review Chinese-funded projects.
HKTDC chairman Vincent HS Lo noted that managing risk and debt, ensuring mutual benefit, cooperating with local companies and local worker involvement are the main challenges of BRI projects.
Bank and insurance executives speaking at the plenary and thematic sessions shared their views that infrastructure investment is very complex, involving strategic planning, technical assessment, feasibility studies, deal structuring, financial and tax planning, financing, project management and risk control.
According to the Hong Kong International Arbitration Centre, the number of cases related to BRI projects rose by over 70 percent to 125 last year as a large number of Chinese companies rushed overseas to implement BRI projects in countries with different regulations, business landscapes and cultures.
During the summit Hong Kong official and business leaders campaigned to leverage Hong Kong’s strength of being the most complete platform for fundraising, a regional logistics hub for sea and air cargo and a conduit for investment between mainland China and the rest of the world.
Most speakers agreed that even though the BRI primarily and initially aimed at enhancing connectivity for investment and trade, it goes beyond these areas. Physical connectivity will create a virtuous cycle to eventually expand and deepen economic, social and cultural connectivity.
