11/6/2017-10

Along the way infrastructure projects listed on the construction of China Merchants Investment Bureau flag “economic colonial” controversy

Along with some infrastructure projects in recent years in the capital market accounted for a seat, and gradually mature to the listing of fund-raising stage, but Chinese-funded enterprises in the field of strategic investment infrastructure, easily lead to “economic colonization” controversy. In order to repair the relationship with the local people, will oppose the voice to a minimum, Chinese enterprises interested in the right time to the project market, a free sale of public assets. China Merchants Port (0144) Investment projects in Sri Lanka and the port city of China (1800) have been forced to stop due to demonstrations. At the same time, listing and listing has become an important issue.

Ming Pao reporter Yu Muen

The total investment in the Port City project in Sri Lanka is $ 13 billion, with about $ 250 million at present and $ 1.3 billion for reclamation and infrastructure. Port cities include financial centers, shopping malls, docks and residential, after completion is expected to accommodate 250,000 people. Port City two years ago because of government turnover and suspension, about 1 year after the resumption of work last year, the whole project is expected to take 25 years to complete.

Lim Kian Siew, Director of Planning and Development, Port City, Colombo, said that more than 140 clients have been contacted for secondary projects, including water supply and power generation facilities, construction of light rails, etc., But also with the bank to discuss loans, temporarily not decided whether the loan will be carried out in the country.

In the medium to long term, Lim said that after the completion of individual projects can be issued after the debt financing, to be mature time hope to real estate trust fund (REITs) way to raise funds, “after they can roll down”, located in the more mature capital markets, Hong Kong And Singapore in the consideration of the list, Lim admitted that the funds needed to return about 8 to 9 years.

Container terminal listed or into the largest local listed company Port city next to the container terminal is also controlled by the Chinese state-owned enterprises, is currently the country’s most expensive wharf, China Merchants and the Sri Lankan government, respectively, 85% and 15% stake in the company’s business development president Tissa Wickramasinghe said the terminal will reach a maximum capacity of 2.4 million containers in the short term, hoping that the future can be further improved.

The company disclosed in January with several local investment banks to discuss the listing plan, but no specific timetable, if made, believe that Sri Lanka will be the largest listed companies, Colombo Exchange, about 300 listed companies on average the market value of only about a few thousand Million dollars or so.

Wickramasinghe admitted that there was no need to go public when the business was not up to the highest capacity, but it still had a sense of ease and public relations. He said that the future of the terminal would be reduced by 20%, about 240 employees , In order to balance the project to create the original intention of employment, need to be carefully considered.