Infrastructure

As part of Thailand’s plan to upgrade electricity and transport infrastructure across the country, Bangkok is moving forward to transform the city into a wireless metropolitan area. Internationally-recognised project management services and advanced expertise in electricity infrastructure replacement works are in keen demand for the project, which is spearheaded by Thailand’s Metropolitan Electricity Authority (MEA).

At the signing ceremony of the Third Belt and Road Summit jointly organized by the Hong Kong Government and the Hong Kong Trade Development Council (HKTDC) on June 28, 2018, Deputy Prime Minister of Thailand Dr Somkid Jatusripitak and HKTDC Chairman Dr Vincent Lo congratulated Hong Kong Energy Infrastructure Limited (HEI), a wholly-owned subsidiary of Kum Shing Group, on the signing of a Memorandum of Understanding with MEA for "The Provision of Feasibility Study on Undergrounding Overhead Power Lines". This is the first time for a Hong Kong company to provide consulting services to a Thai state enterprise in the power and energy sector, and a milestone result of Kum Shing Group’s participation in the HKTDC-led Hong Kong-Shanghai joint infrastructure investment delegation to Thailand in May 2017, during which the company met with MEA and confirmed their partnership after rounds of discussion.

With over 55 years of experience, Kum Shing Group is Hong Kong's energy and mobility infrastructure specialist that provides engineering solutions to the city’s electricity supply system from power generation, transmission, distribution to utilization, assisting the local utilities in achieving a world-class supply reliability of 99.999%. Kum Shing Group possesses the experience and expertise to offer advisory services for Thailand’s MEA to manage its overhead line works and underground cable installation.

Mr Rex Wong, Executive Director and CEO of Kum Shing Group and Managing Director of HEI, said, "We appreciate the trust and confidence MEA has placed with us. We will utilize our engineering and management expertise to support the improvement and development of electricity system in the Greater Bangkok area."

The Thai Government has injected 51.7 billion Thai baht (approximately USD$1.58 billion) to the undergrounding project. Currently, 214.6 km of the MEA’s underground power transmission system project is under development on 39 roads in Bangkok, with completion slated for 2021. Kum Shing Group provides advisory services to MEA from technical design, application know-how, engineering expertise to resources deployment and stakeholder engagement planning. Not only does the project aim to beautify the streetscape, improve the neighbourhood environment and maximize land-use, but also enhance the electrical power distribution system to supply sufficient, stable and safe electricity for the city. Recently, Kum Shing Group has also offered stakeholder management consultancy services and training to MEA.

On the unique strengths of Hong Kong companies when participating in such projects, Wong said it is easier for Hong Kong, one of the world’s top-ranked cities in terms of reliability of electricity supply and transport network, to reach out to and gain the favour of the project owners and investors in the emerging markets of the neighbouring places who are looking for experienced and trusted consultancy to guide them through their local projects. Wong also advised the above-mentioned two types of people to get relevant consultancy and advisory services before jumping into investment to “ensure that the resources and time spent on the projects will not be wasted”.

For companies looking to tap into Belt and Road opportunities, Wong said companies should first focus on local projects before planning to venture overseas. “When you manage your local projects well and build up your organisation’s reputation, you’ll be better placed to find the right partners abroad and engage in a mutually trusting partnership.”

He believed that such collaboration with MEA will serve as a stepping stone for the Group to expand its business to the neighbouring regions, bringing its long-standing expertise and integrated technology and design solutions to other cities in the area to help meet the local demand for infrastructure development.

The experience, comprehensive construction and technical know-how accumulated in Hong Kong is key to tapping into Belt and Road opportunities, according to Dominic Pang, Chairman of Asia Allied Infrastructure Holdings Limited (AAIH), whose company has recently secured a major water-supply infrastructure contract in the Philippines.

Having participated in a number of large-scale integrated construction projects in Hong Kong, including the Central-Wan Chai Bypass project, MTR Guangzhou-Shenzhen-Hong Kong Express Rail Link (Hong Kong Section) and Happy Valley Underground Stormwater Storage Scheme, AAIH accumulated extensive experience in the construction sector enabling it to expand business to the Belt and Road countries.

“The Philippines is a starting point to explore other Belt and Road-related construction opportunities around the region. Through this project, we hope to expand our business in the Philippines and find relevant partners. Technology transfer will help the local partners develop and list in Hong Kong, bringing project and investment returns to AAIH,” said Pang, who believed that construction projects, however they are tied to the Belt and Road Initiative, provides the Hong Kong construction industry with an opportunity to export its hard-earned reputation for managing and constructing world-class infrastructure projects. “As more Belt and Road projects are announced, we should be looking at ways to export our Hong Kong premium brand of construction and engineering capabilities and skills of handling complex projects  to other regions,” said Pang. 

With two independent thirdparty construction contractors, AAIH has entered into a contract with Manila Water Company, Inc to design and construct the Novaliches-Balara Aqueduct 4, water conveying facilities. Due for completion in 2021, the 5.4 billion-Peso (approximately HK$800 million) project will improve the long-term water supply services between Novaliches and Balara in Quezon City, the most populated city in the Metro Manila area. One of the two contractors also worked with AAIH previously on the Sha Tin-Central Rail Link project, constructing the tunnel between the Kai Tak and Diamond Hill MTR Stations.

In addition to the Novaliches-Balara Aqueduct 4 project, Pang said AAIH is exploring collaborative relationships with construction firms in Malaysia, the Philippines and Vietnam. “Other than project management, we are looking at ways to set up material and equipment sourcing collaborations to provide benefits along the construction supply chain,” said Pang. He said establishing connections with local stakeholders and introducing best construction project management practices is a good example of the Belt and Road ethos of promoting cooperation, mutual learning and mutual benefits.

Stephen Lee, Chief Executive Officer of Chun Wo Construction Holdings Limited, said it is noteworthy the Novaliches-Balara Aqueduct 4 project, which features a 7km long and nearly 4m diameter tunnel, will be the first tunnel in the Metro Manila area to be constructed using a tunnel boring machine (TBM).  Used as an alternative to drilling and blasting methods, the use of TBMs requires expert planning and operating processes. “Our project management team has worked on challenging tunnelling projects in Hong Kong and will apply their skills and experience on the Philippines tunnelling project,” Lee said. Ahead of the commencement of tunnelling work, currently, geotechnical inspection work is being conducted to evaluate soil conditions and groundwater conditions.

With a wealth of experience in the construction industry, Edward Yeung, Assistant to the Chief Executive Officer of AAIH said by working with Philippine sub-contractors and employing local labour, AAIH can introduce the latest construction techniques and help fast track up-skilling. “The Philippines may lag behind the sophistication of Hong Kong's construction industry, but there is a lot of enthusiasm and commitment to improve,” noted Yeung. Dubbed by the government as the “golden age of infrastructure”, the Philippines has launched a major public spending programme focused on the construction of new roads, bridges, railways, and airports costing some US$167 billion. “As a company that possess extensive experience in project management and construction, AAIH is looking forward to sharing our expertise with suitable partners,” said Yeung.

The Hong Kong University of Science and Technology (HKUST) is leading a five-year study to reduce the effects of landslides, including among China’s Belt and Road countries. HKUST’s Charles Ng says the multi-disciplinary, multinational study includes student participation in developing a world-leading standard of landslide barriers for “export” to many countries.

Speakers:

• Charles Ng, Chair Professor, Civil and Environmental Engineering, HKUST
• George Goodwin, UK Student
• Kelvin Au, Hong Kong Student
• Hengdu Liu, Chinese mainland Student
• Rafa Tasnim, Student from Bangladesh

Related Links:
Hong Kong Trade Development Council
http://www.hktdc.com

HKTDC Belt and Road Portal
http://beltandroad.hktdc.com/en/

Prosper Construction Holdings, a Hong Kong-based contractor specializing in marine construction services, has an established track record in marine infrastructure developments at home and abroad.

Established in 2001, Prosper Construction owns over 50 marine plants and vessels, including floating jetties, a floating batching plant, a wide range of barges and dredging equipment, and a diversity of land construction equipment such as cranes and earth-moving machines. It also operates its own crew and technicians. All these give the company an edge when bidding for projects and enables it to ensure high project quality and good time control. This strength in resources has also helped Prosper Construction win a variety of marine infrastructure projects in regions or countries along the Belt and Road route. A good number of the projects are located in Indonesia, Southeast Asia’s largest economy which has the region’s greatest need for new infrastructure.

A high-profile project that Prosper Construction completed recently through its subsidiaries, Hong Kong River Engineering Co. and PT Indonesia River Engineering Co., is a coal-fired power plant in Bali.

Located in Celukan Bawang, North Bali, the plant was built with an investment of US$700 million by China Huadian Group, one of the five largest state-owned power generation enterprises in China, as well as PT Merryline International, and PT General Energy Indonesia. It consists of three units, each carrying a capacity of 142 megawatt units and using efficient, clean coal technology.

Over the past decade, Bali the island has been depending heavily on electricity supplied by Java-based power plants. Demand for electricity on the island has been on the rise, and frequent blackouts have hampered local businesses and investments. The establishment of the plant is expected to help the island enjoy more stable power supply.

Prosper Construction was responsible for constructing the jetty, revetments and seawater intake pipeline. The company’s Hong Kong team was behind the scenes, drafting the tender proposal in the early stage and liaising with consultants.

There were considerable challenges in executing the project, including local shortage of building materials and strong wind and fierce waves in the area where the plant is located. Yet Prosper Construction managed to pull through by ensuring its technicians upheld the safety standards and by sourcing materials from China.

The project is an example of how a resourceful Hong Kong company can readily employ what it has to support Chinese investors to go abroad and help build infrastructure projects that benefit Belt and Road countries.

Specific social and economic outcomes rather than project numbers are making the Belt and Road Initiative a success according to Michael Kwok of Arup. The architectural design, planning and engineering consultancy has its East Asia headquarters in Hong Kong with signature projects like the Hong Kong-Zhuhai-Macao Bridge and Mr Kwok says the SAR’s openness and pragmatism – as well as its technology adoption – are vital for Belt and Road development.

Speaker:
Michael Kwok, East Asia Region Chairman, Arup

Related Links:
Hong Kong Trade Development Council
http://www.hktdc.com

HKTDC Belt and Road Portal
http://beltandroad.hktdc.com/en/

US-based CallisonRTKL established its planning, architecture and design practice in Hong Kong to connect mainland China operations with the rest of the region, according to the firm’s Darryl Custer. He says as Hong Kong is at the centre for Asian business, its US practices have contributed to innovative healthcare solutions for hospitals, for example, while it recently provided distinctive design for expanding mainland companies like Duty Zero. 

Speakers:
Darryl J Custer, Senior Vice President, Asia Pacific Leader, CallisonRTKL Asia Ltd
Beau Herr, Senior Vice President, Asia Healthcare, CallisonRTKL
Shirley Cheng, Vice President, Retail, CallisonRTKL

Related Links:
Hong Kong Trade Development Council
http://www.hktdc.com

Think Asia, Think Hong Kong September 20, 2019, Los Angeles
http://www.hktdc.com/ncs/thinkasiathinkhk2019/en/main/

The Belt and Road Initiative has introduced global asphalt expert and Hong Kong-based D&G Technology to a wider set of projects, including the Pakistan Economic Corridor, says CEO Glendy Choi. Hong Kong has great advantages of branding, sales and recycling expertise. Speaking beside the Summit she was pleased by the event’s “Vision to Action” theme.

Speaker:
Glendy Choi, Executive Director & CEO, D&G Technology

Related Links:
Hong Kong Trade Development Council
http://www.hktdc.com

Belt and Road Summit
http://www.beltandroadsummit.hk/en/index.html

HKTDC Belt and Road Portal
http://beltandroad.hktdc.com/en/

The New Manila Bay City of Pearl is Hong Kong architectural firm hpa’s most scaleable mixed-use project, says Deputy Managing Director Nicholas Ho. This “smart city” is an example of the Belt and Road Initiative’s backbone development and the reason why the Philippines chose Hong Kong professionals with an international outreach. hpa is going on to spread its expertise across Asia and the Middle East.

Speaker:
Nicholas Ho, Deputy Managing Director, hpa

Related Links:
Hong Kong Trade Development Council
http://www.hktdc.com

HKTDC Belt and Road Portal
http://beltandroad.hktdc.com/en/

Hong Kong-based state-owned enterprise China Merchants Group (CMG) is reprising its industrial and commercial pioneering role, this time as a founder of the China-Belarus Industrial Park, also known as Great Stone Industrial Park and a major Belt and Road project. Beside an HKTDC seminar recently CMG Director Hu Zheng detailed investment features at the Park, including “10+10” corporate tax exemption and preferential loans through China Development Bank. 

Speaker:
Hu Zheng, Director of China Merchants Group (CMG)

Hong Kong Trade Development Council
https://www.hktdc.com/

Prosper Construction Holdings, a Hong Kong-based contractor that provides marine construction services, offers its expertise to both the private and public sectors in different parts of the world. Since its inception in 2001, the company, which operates in the name of its flagship company Hong Kong River Engineering Company, has completed various large-scale marine infrastructure projects in Hong Kong, Macau, Southeast Asia, the Middle East and Africa. Many of these projects are located in countries or regions along the Belt and Road route. 

One of the Belt and Road projects recently completed by Prosper Construction involves a cement production plant in Indonesia, which was put into operation in August 2016. Located in Manokwari, the capital of the province of Western Papua, the plant is funded by two Chinese enterprises, the State Development and Investment Corporation and Anhui Conch Cement Company. The joint venture between the state-owned investor and Anhui Conch Cement, a private enterprise that is China’s largest cement maker by market value, is a typical form of partnership for Belt and Road initiatives. 

The establishment of the cement plant is expected to help meet Indonesia’s surging demand for infrastructure projects. It is also set to help ease cement price pressure especially in Papua, the easternmost province of Indonesia bordered by West Papua. The long distance between Papua and the main cement-producing regions of Indonesia means cement prices in Papua are among the highest in the country.

With a price tag of US$300 million, the cement factory has an initial capacity of 1.5 million metric tons per annum. The project comprises various features, including production structures, lighting and power supply and communication facilities, and marine facilities. Prosper Construction was responsible for the marine infrastructure, which consists of several berth platforms, an approach bridge and a cargo terminal. The company’s Hong Kong team played an important role in winning the contract to build the marine infrastructure. Leveraging their industry knowledge, technical knowhow and network of contacts, the team members prepared the tender proposal and arranged for experienced consultants to design the plans of the infrastructure. 

In implementing the project, Prosper Construction faced different challenges, including the tight work schedule and harsh sea conditions. Nevertheless, the Hong Kong contractor managed to complete the project without a hitch, demonstrating the efficiency and resilience of a Hong Kong company with substantial experience in its trade.