g2g PROJECT SUMMARY

Through our consortium here in China, we are able to work with policy banks (China Development Bank and China EXIM Bank),  top tier commercial banks (Bank of China, ICBC, Construction Bank of China and Agricultural Bank of China) and the top 10 listed state-owned enterprises who engage in G2G EPC project opportunities.

The following types of projects are what are mainly considered when securing funding from China:

          ♦ Infrastructure • Energy • Transportation • Telecommunications  

          ♦ Industrial • Mining • Agriculture • Manufacturing  

          ♦ Social Welfare • Housing • Health-care  

For G2G projects requiring financing, we have the ability to bring together a consortium of contractors and financial institutions from China which not only executes the EPC projects but can also finance them with preferential terms subject to the following required conditions:

        i. The project has to be government owned in the respective country.  

       ii. The project should be included in the budget with the finance ministry mandated to secure external funding.  

      iii. A total of 85% of the project can be financed. The respective government has to contribute 15% that is prepaid before construction is set to start. In certain cases the 15% can be paid in tranches throughout the construction period.  

      iv. The project has to be backed by a sovereign guarantee to protect the repayment of principal and interest to the Chinese financial institution(s) for the sum financed.  

       v. Apart from the sovereign guarantee, the repayment of the finance and interest has to be tied to future revenues the project may generate. In some cases, for projects that are backed by natural resources, the revenue from the sale of the said natural resources would act as the repayment guarantee via exclusive offtake/sale agreements to a Chinese SOE (for eg. Oil; Gas; Minerals etc).  

      vi. Typically, even when contractors are taking on projects, they commit to a percent of local content finalized by negotiations to conform to local laws. 

Broad Steps involved in finalization: 

    a. First step would be to identify a project and its scope : 

             i. Project Identification: 

                        • Usually selected from the priority projects via the Presidency 

                        • EPC   

            ii. Detailed project preparation for evaluation, including complete feasibility studies      along with any other documentation avialable. 

    b. When a project is identified the proposed financial institution and contractor will evauate and thereafter  their interest. when the consortium shows interest, we can move to the next step and arrange LOI’s to commence official communication and start preliminary negotiations.