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The First One Belt And One Road Infrastructure Development Index Is Released

Jun 09, 2017

"This BBS attracted a total of 63 countries and regions, more than 1700 people attended, including 57 ministerial guest, the world bank, the Asian infrastructure investment bank executives, 32 international financial institutions, such as service providers and international contractors association, industry chain and other representatives of more than 630 enterprises, scale and level BBS record highs, contracted projects of unit, both quantity and amount of signing a record."China international contractors association, chairman of the house autumn morning at the eighth international infrastructure construction and investment peak BBS said at a news conference, "the minister through dialogue, speech, country project promotion and meetings and other forms, in-depth communication with the international construction industry parties, share the view of development and promote its planning, not only enhance the mutual trust and promote communication policy, makes some major progress was made in the international project, so as to promote the infrastructure inter connectivity."


BBS press conference and signing ceremony


The infrastructure funding gap is a trillion dollars a year

Since the 2010 years since the first international infrastructure peak BBS, China's foreign contracted projects completed turnover of $905.2 billion, the implementation of a large number of roads, railways, ports, Bridges, electricity, telecommunications and other infrastructure projects.Chinese financial institutions by providing concessional loans, special loan, a way, such as special cooperation fund for international cooperation in infrastructure facilities and support, accumulative total financing $220 billion since 2010.As of now, the total number of bilateral cooperation agreements, agreements and memorandums is 99.

At present, countries around the world demand for infrastructure construction, in the development of accelerated industrialization and urbanization in developing countries need to increase investment in infrastructure construction, the developed countries due to update and upgrade aging infrastructure and stimulate the economy of dual purpose, also launch large infrastructure construction project.But infrastructure financing bottleneck is always there, on the one hand is up to a year of billions of dollars in funding gap, on the other hand is a huge lack of social capital into the infrastructure of the policy environment and channel.

The One Belt And One Road initiative brings new opportunities for international infrastructure cooperation

"The One Belt And One Road initiative has brought new opportunities and impetus to international infrastructure cooperation."Chinese vice commerce minister and deputy representatives Jianhua Yu international trade talks in BBS speech pointed out that "at present, under the joint efforts of all parties concerned, a number of influential landmark projects have been built or are being, more railways, highways, ports, electricity, communications and other project will be started. We will discuss the co-construction and sharing of ideas, and have the will of the state, international organizations, financial institutions, all kinds of enterprises to carry out pragmatic cooperation and sharing all the way 'dividend' area."

Two weeks ago, held in Beijing the "area" of international cooperation during the peak BBS, China has announced that the China development bank, export-import bank of China will provide 250 billion yuan and 130 billion yuan respectively special purpose loan to support all the way "area" infrastructure, capacity and financial cooperation.



With the development of "One Belt And One Road", Jianhua Yu believes that China's cooperation with other countries in infrastructure will face a broader prospect.He makes three Suggestions:

First, strengthen cooperation between the government and create a good environment, the world in a positive and open attitude towards infrastructure of international cooperation, in such aspects as personnel entry and exit, taxation, exchange equipment to provide facilitation measures, adhere to the principle of open, transparent and non-discriminatory, and safeguard investors' legitimate rights and interests, to protect investors security, enhance cooperation confidence;

Second, strengthen the financing mode innovation, solve the funding gap, to the guideline of system construction, vigorously promote the development of BOT/PPP mode, the government investment as the seed money, providing necessary supporting policy support, to attract and stimulate the development of commercial equity funds and social capital to enter;

Third, to strengthen engineering technology, norms and standards in the areas of cooperation, infrastructure construction should give full play to its advantages, the international industry in engineering technology, standard specification, human resources, management and so on to strengthen cooperation, share successful experience, promote common development.

The One Belt And One Road national infrastructure development index was released

On The peak BBS, China international contractors association officially issued The first "One Belt And One Road" national Infrastructure Development Index (2017) (The Belt and Road Infrastructure Development Index, BRIDI) and The Index report (2017).This is the first comprehensive development index of international infrastructure investment and construction, and the "One Belt And One Road" infrastructure cooperation has since been "a barometer".


The One Belt And One Road national infrastructure development index (2017) is released


According to the index research report, the national infrastructure development of the One Belt And One Road has the following characteristics:

First, the whole is fluctuating upward

Infrastructure development, the total index is presented against the characteristics of the economic cycle, after the global financial crisis and emerging market countries after the downturn in the economy, governments have increased investment in infrastructure to boost economy, infrastructure development index of 2010 and 2016, respectively.In 2017, the national general economic stabilization, development index fell back, but in the current economic cycle, countries will keep spending on infrastructure, infrastructure development will continue steadily rising trend.

Second, the development momentum of ASEAN and EAME is strong

National development index overall rankings in 2017, the top 10 were Indonesia, Iran, India, Brazil, Russia, Vietnam, Singapore, Portugal, Pakistan, and Bulgaria.In the region, the ASEAN and central and eastern European regions have performed well, with the average score higher than those of other regions.

Third, transportation and electricity are important engines

The 2017 growth indicators show that transport and power infrastructure are developing faster than the overall infrastructure.Many "area" national transport and power facilities as the focus of the infrastructure development planning, transportation and power infrastructure is expected to continue to lead the infrastructure development of all countries.Improved housing is a hot topic in the construction industry;In public utilities, the prospects for telecoms are promising.



Fourth, the demand for infrastructure in countries is expanding

Compared with relatively stable production resources, market demand is the dominant factor in the sub-index of "infrastructure development potential".In 2017, the target's "development potential" scored significantly higher than 2016, reaching 121, with a market demand index of 99, accounting for about 80 percent.Overall, the future "One Belt And One Road" national infrastructure development potential will be huge and will continue to rise.ASEAN, South Asia and portuguese-speaking countries have the strongest demand.

Fifth, the popularity of transnational infrastructure has increased significantly

The index shows that the enthusiasm for the "One Belt And One Road" national infrastructure project has increased significantly in the past two years.Mainly for cross-border infrastructure new signing contract number and value of exploding, among them 2015 new signing contracts can be 150% more than in 2014, 2016 new signing contract size, though down from 2015, but remains high.The "hot" countries include Vietnam, Indonesia, Pakistan and India.

Sixth, political and financial environmental fluctuations have adverse effects

The development environment mainly examines the four aspects of politics, society, finance and business environment.In the past few years, in addition to the individual cafs, "One Belt And One Road" national society, the business environment is relatively stable, but political and financial environment fluctuates significantly, and led to the development environment index downward trend.



The report argues that the One Belt And One Road initiative is a policy dividend for promoting coordinated development of infrastructure across the country.Countries such as ASEAN, South Asia and other countries are enjoying rapid development of infrastructure.The concept of sustainable development brings new space to the practice of infrastructure.But there are risks:

First, there has been a rise in trade and investment protectionism, and geopolitical risks threaten the safety of transnational infrastructure.

Second, terrorism, regional conflicts and refugees have brought many uncertainties to the infrastructure construction of the One Belt And One Road.

Third, the national sovereign risk recessive consumes the benefit of transnational infrastructure construction.

Given all the way "area" national infrastructure project opportunities and risks, China international contractors association chairman room autumn morning told reporters, transnational capital construction project participants should be:

- further strengthen market research, policy docking and risk prevention and control;

-- we will expand cooperation to increase the success rate of transnational infrastructure projects.

-- focusing on economic, social and cultural integration and building sustainable infrastructure projects.