China International Contractors Association (CHINCA)

December, 2019

China International Contactors’ Practiceson Sustainable Infrastructure

2

Founded in April 1988

Approved by the State Council

Affiliated to the Ministry of Commerce (MOFCOM) before July 2017

National association of international contractors, engineering project investors and related service providers.

1,500 members: international contractors (1,000+), project investors and related service providers (100+), labor service agencies (300+) Represent 99%+ of the whole industry players

43 board members

Functions: communicate members' appeals, strengthen industry self-discipline, provide professional service,

China Social Organization Evaluation Grade 5A

Advanced Social Organization of China

About CHINCA

2016, intl revenue: USD159 bn, up 3.5%; new contracts: USD 244 bn, up16.2% .

2017, intl revenue: USD 169 bn, up 5.8%; new contracts: USD 265 bn, up 8.7%.

2018, intl revenue: USD 169 bn, up 0.3%; new contracts: USD 242 bn, down 8.8%

2019, 1-10, intl revenue: USD 116 bn, up 5.1%; new contracts: USD 177 bn, up 5%

Business Scale

Value of New Contracts

Accomplished Turnover

Growth Rate of New Contracts Value

Growth Rate of Accomplished Turnover

Unit: USD 100 Million

Region

New contracts Turnover

New contracts(bn)

change% portion% turnover change% portion%

Asia 119 -16.9% 49.4% 91 2.7% 53.7%

Africa 78 2.5% 32.4% 49 -4.6% 28.9%

Latin America

18 14.90% 7.50% 12 -7.30% 7.10%

Europe 14 -16.8% 5.9% 10 7.5% 5.9%

Oceania 86 1.8% 3.5% 5 12.4% 3.0%

North America

2.9 -19.8% 1.2% 2.5 3.6% 1.5%

Market Distribution

2019: 207 countries and regions83% of business was in Asia and Africa

S/N

Country TurnoverS/N

Country Turnover

1 Pakistan 11.3 11 Australia 4.0

2 Malaysia 7.9 12 Ethiopia 4.0

3 Algeria 7.5 13 UAE 3.6

4 Indonesia 6.1 14 Thailand 3.4

5 Laos 5.3 15 Vietnam 2.8

6 Saudi Arab 5.2 16 Kuwait 2.7

7 Angola 4.5 17 Zambia 2

8 Kenya 4.4 18 Brazil 2.6

9 Bangladesh 4.3 19 Singapore 2.6

10 Nigeria 4.1 20 Iraq 2.5

2019 Top 20 Country Markets

80% business concentrated in the transportation, housing and building construction, power engineering, communication engineering and petrochemical these five professional sectors.

Development has significantly accelerated in Rail transit, port and power projects(thermal power, hydropower, nuclear power), and manufacturing facilities.

Transportation construction business realize obvious growth

Power engineering still is the business hotpoint

Housing and Building Construction business grow steadily

Sector Segmentation

Addisababa Djibouti Railway CRECCCECC

Mombasa Nairobi Railway CRBC

Ankara to Istanbul High-speed

Railway CRCC CMC

Morocco Rabat Tower Project CRCC

Algeria Martha mosque CSCEC

Pakistan Nirum Jelum (N-J) Hydropower Station CGGC

Saudi Circulation Power Station SEPCO

40 projects, each contract value more than USD 1

bn;

467 projects, each contract value more than USD

100 Mn（490 in 2017, 481 in 2016; 434 in

2015), total amount accounting for 75% of the

Value Of New Contract of the year;

More integrated

Project Scale

Drive economy growth 53%

Decrease resource waste 51%

Improve public service supply and management 52%

Improve air and water quality 49%

Improve public safety 47%

Create jobs 42%

Reduce carbon footprint 41%

Reduce noise pollution 35%

Reduce traffic congestion 54%

SDGs and Sustainable Insfrastructure

Gap between financing and investment demand and supply is enlarging, and efforts from just governments will not satisfy and support infrastructure development needs.Leveraging private investment is essential.→meaning both market opportunities and challenges

世界经济论坛 2010-2030 Financing gap球）

AIIB 2015-2020 USD 1.4 Trillion (Asia)

Organization for Economic Co-operation and Development,

OECD2015-2030

United Nations Conference on Trade and Development,

UNCTAD2015-2030

USD 2 Trillion (Developing Countries)

USD 2.5 Trillion (Developing Countries)

Insufficient financing

Transportation, energy(electricity), and real estate fields will bring more investment and

construction opportunities

Interconnectivity infrastructure construction: construction of road, railway, shipping, ports, airports, and logistic network

Increase regional economy growthRegional organizations such as the European Union, the African Union, and the Latin American Community and governments actively develop transportation and logistics networks to effectively contact regional cities.B & R InitiativeTEN-Transport and TEN-EnergyAfrica international railway corridor planningNorth and South African economic corridorEconomic development corridor in central Africa

Energy and electricity: economy development, green energy demandAbout 2.6 billion people around the world cannot use electricity at any time1.1 billion people have no electricity available

Real estate development and other livelihood projects: urbanization requirement, green and energy-saving and environment-friendly building are future directions of development

A project to meet all needs for all stakeholders

Investors and end users requires economic, social and environmental sustainability

PPP brings

1. Money

2. Expertise and Technology

(best choice, risk control, technology transfer)

1. Efficiency (priority list, debt management)

2. Transparency (integrity and compliance)

PPP requires local governments to

1. Select (from either government or private sectors) and prioritize projects

2. Provide favorable environment (land acquisition, taxation)

3. Protect investors’ rights

Project

Government

LocalCommunity End

users

Investor Contractor

PPP for sustainable infrastructure

Investment and development capabilities will be the "silver bullet" in

international contracting business

Project Owner considers the following when selecting partners:Reasonable regional planning for developmentCapability for financing and project operationAssistance for host countries’ job creating and industry upgradingEco-system improvement

PPP mode projects

➢Participate in overall regional planning and comprehensive developmentCCCC and Sri Lanka's National Port Authority jointly developed the Colombo Port City project(2017): Construction scale: more than 5.3 million square meters. Directly invested USD 1.4 billionDrive the secondary development investment up to USD 13 billion

CITIC Construction win the bid for one of Myanmar's three major special economic zones, the Kyaukpyu Special Economic Zone Industrial Park project and the development of the Deepwater port project(2016).

Year

Number of Chinese

companies listed

Total Turnover

/all listed companies

year USD Bn

2003 43 7.13 6.10%2004 47 8.33 6.00%2005 49 8.83 5.30%2006 46 10.1 5.30%

2007 49 16.3 7.30%2008 51 22.7 7.30%

2009 50 43.2 11.10%2010 54 50.6 13.20%2011 51 57.1 14.90%2012 52 62.7 13.80%2013 55 67.1 13.10%

2014 62 79.0 14.50%2015 65 89.7 17.20%

2016 65 93.7 19.30%2017 65 98.7 21.10%2018 69 114.1 23.70%

2019 75 119.0 24.4%

Europe（2）：Russia, Belarus

Americas（4）: Ecuador, Bolivia, Venezuela, Panama

Oceania（2）：Fiji, Papua New Guinea

African（26）：Egypt, Algeria, Sudan, Senegal, Liberia,

Côte d'Ivoire, Nigeria, Guinea, Ghana, Cameroon, Chad, Angola, Republic of Congo, Democratic Republic of the Congo, Equatorial Guinea, Rwanda, Kenya, Ethiopia, Tanzania, Uganda, Mozambique, Namibia , Zimbabwe, South Africa, Zambia, Botswana

Asian（25）：Laos, Malaysia, Thailand, Indonesia,

Cambodia, Philippines, Vietnam, Myanmar, Mongolia, Kuwait, Turkey, Saudi Arabia, United Arab Emirates, Iraq, Iran, Qatar, Pakistan, Sri Lanka, India, Bangladesh, Nepal, Tajikistan, Kyrgyzstan, Uzbekistan ,Kazakhstan

Recommendation List of Chinese Intl Contractors

Project Owner considers the following when selecting partners:reasonable regional planning for developmentcapability for financing and project operationassistance for host countries’ job creating and industry upgradingEco-system improvement

——higher demand and requirement for international contractors in global operation, high integration and planning capacity

Sustainability and CSR

⚫ 2017.6.1 《中国企业境外可持续基础设施项目指引》发布Guidelines of Sustainable Infrastructure for Chinese International Contractors was officially released on June 1st, 2017

Thank you! www.chinca.orgzhangfang@chinca.org

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