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The Fortune Global 500 Enterprise-CPCG Fully Implements the “Belt and Road” Initiative and Attracts Cooperation Intent from Malaysia
The monsoon in Southeast Asia warmed the winter in the Jianghuai Plain, China. From January 15 to 16, a special Malaysian high-level delegation led by Fadilla, Minister of Construction of Malaysia, arrived in Jiangsu and held talks with Yan Jiehe, founder of CPCG, and Yan Hao, Chairman of the Board of CPCG respectively. It also paid a special visit to Hongze Lake Road, Suqian City, the first order of Chinese PPP mode constructed by CPCG. The visit marks that the cooperation between CPCG and Malaysia in infrastructure construction will enter a practical stage.

According to the plan, once the cooperation has been opened, the CPCG, ranked 89th in the Fortune Global 500 and the No.1 in the world’s private construction industry, will take Malaysia as the center and enter the Southeast Asian infrastructure market in an all-round way. Advancing into Southeast Asia, planning western and Central Asia, and lay outing Eastern and central Europe, following the thread of the ancient Silk Road, CPCG is spreading a “grand narrative” as a private enterprise and the “Belt and Road Initiative”.
Expanding PPP Mode and Staying True to the Original Mission

On January 15, the temperature was warm as spring. A special Malaysian delegation led by Fadilla, Minister of Construction of Malaysia, flew to Nanjing and went straight to Suqian.

The first stop, Hongze Lake Road, Suqian City, is the “pioneering project” of China’s PPP mode.

In 1996, Suqian is a newly established prefecture-level city. The most urgent task was to build a main road. But at that time, the municipal government had just been set up, and the municipal finance was difficult. Relevant departments found CPCG, hoping to advance funds to build the road. In the case of the government can’t get the start-up funds, the 50-million-yuan project will be funded by this private enterprise itself.

Responsibility and risk are all in one. CPCG stands in the wind of the times, which has started the project of participating in Suqian’s urban construction, and thus become the pioneer of China’s PPP mode. With the completion of Hongze Lake Road, modern buildings are gradually uprooted on the original farmland. Factories and enterprises are flourishing. All kinds of building materials and heavy machinery needed for urban construction are continuously imported here. A modern city is thus, uprooted.

The Malaysian delegation made a detailed inquiry on the road construction process, construction methods and carrying capacity. When it learned that the road had been in operation for more than 20 years without renovation and remained intact, Fadilla sighed: “I believe that sustainability is the most important ‘necessary item’ in the construction indicator, which reflects the attitude of an enterprise and its treatment to its workers, the public and the environmental.”

During the meeting with Yan Jiehe, the founder of CPCG, Fadilla said that he had been working for many years to improve the highway system through a number of measures, promote the transformation of the construction industry, encourage industrialization of construction system and so on. To his surprise, he said, “All this has been answered on a 20-year-old road in China.”

Yan Jiehe answered: “Because we have our own beliefs, that is, wisdom and conscience; suffering hardships and suffering losses.” He said: “At that time, the old guys who worked together to dig the first barrel of gold and build the first road have basically handed over their work to the next generation. The spirit of treating employees generously and taking brand seriously has been passed down.”

During the talks, CPCG also sent a letter to the delegation: “Only by integrating design, construction and maintenance can the construction industry move towards zero dependence, zero subcontracting, zero internal friction, zero corruption and zero loss, and ultimately achieve the fastest progress, the lowest cost and the best quality. Our business model will bring new changes to the construction industry in your country.”
Cross-System Cooperation for Win-win Outcome
While advancing into Southeast Asia, the layout of CPCG in Central and Eastern Europe has been launched.

On January 10, CPCG and China Railway International Group held a signing ceremony of strategic cooperation. The two sides agreed to give full play to their respective professional advantages, enhance their competitiveness in the international market, cooperate in the development of international projects, and better implement the “Belt and Road Initiative.”

At the signing ceremony, CPCG and China Railway International Group also signed a contract of the “Blue Corridor” project in Albania. The signing of the strategic agreement is a successful example of the cross-system cooperation between private enterprise and SOE under the background of “Belt and Road Initiative”. Yan Jiehe said at the signing ceremony that over the years, CPCG has grown in the spring breeze of reform and opening up. The successful cooperation between the two sides is an advantage complementary between a private enterprise and SOE. CPCG will adhere to the spirit of craftsmanship, together with China Railway International Group to make a good reputation in overseas markets.

Chen Shiping, general manager of China Railway International Group, said that as a pioneer of the national “Belt and Road Initiative”, the group has many years in overseas markets, and has a mature talent team and rich project experience.

The “Blue Corridor” is a highway located along the Adriatic Sea and the Ionian Sea. After the completion of the project, it will connect Croatia, Montenegro, Albania and Greece, and eventually establish the Mediterranean trade circle. This highway not only in parallel with the beautiful scenery of the coastline, but also serves as an important hub for countries along the coastline.

This is another joint effort of the two sides after the project of Metro Line 4 in Kiev, Ukraine. In May 2017, the Belt and Road International Cooperation Summit Forum was held in Beijing. CPCG, China Railway International Group and the Ukraine government jointly signed a MOU on the Kiev Metro Line 4 project in Ukraine, which amounts to about 2 billion dollars. This is a cross-institutional cooperation between a private enterprise and SOE, reflecting the win-win effect of “one plus one is greater than two”.

In November of that year, CPCG and China Railway International Group formed a consortium and successfully signed a formal cooperation agreement for the Metro Line 4 project in Kiev, Ukraine. This project is the most important item in the list of cooperation between China and Ukraine, which worth $7 billion. It has attracted much attention from both governments. With the successful signing of the strategic cooperation agreement between the two sides, CPCG and China Railway International Group will speed up the mature “Blue Corridor” PPP project on the basis of sound cooperation and make every effort to sprint into the market of Central and Eastern Europe.

The relationship between CPCG and Malaysia has a long history. In August 2017, Yan Jiehe, the founder of CPCG, went to Malaysia to conduct cross-border mergers and acquisitions, brand roadshow and site inspection. During the meeting with many Malaysian politicians and businessmen, the corporate culture of CPCG was praised by the Malaysian team, which won the recognition and resonance of the Malaysian government.

In November 2017, Yan Hao, Chairman of the Board of CPCG, held talks with Malaysian Minister of Construction Fadilla and senior officials of Malaysian government such as Ministry of Communications and Ministry of Finance. The two sides held in-depth consultations on the participation of CPCG in Malaysian infrastructure construction and the location of ASEAN headquarters.

Recently, Malaysia’s Ministry of Transport invited CPCG to participate in the construction of Kuala Lumpur Metro Project, and hopes to take this opportunity to cooperate with CPCG. This special visit paves the way for the further comprehensive cooperation between the two sides on infrastructure construction in Malaysia. Fadilla said he was most impressed by the bright blueprint of CPCG, which can bring changes to Malaysia and carry the local people’s yearning for a better life. This made him feel the warmth of his hometown on a foreign winter day.

On January 16, when the delegation visited Nanjing at its third stop, Yan Hao, Chairman of the Board of CPCG, said that CPCG has mature experience of cooperation with the government. In Malaysia, it will continue to uphold the core values of “safety first, word-of-mouth second and profits third”. With the standard of “fast progress, good quality, low cost, low contradiction, high efficiency”, the group will bring the Fortune Global 500 “resources, wisdom and capital” into Malaysia. In the spirit of ownership, it will play a leading role in the field of infrastructure construction in Malaysia.

Malaysia is the preferred place for Chinese enterprises to “going global” to enter the Southeast Asian market. Yan Hao said that he felt Malaysia’s open economic environment, perfect legal system and good business management through many connections. He was very optimistic about Malaysia’s development. The idea of seting Kuala Lumpur as the headquarter of Southeast Asia of CPCG has been strengthened through high-level engagement with the Malaysian government.

Southeast Asia has been an important direction for CPCG along the “Belt and Road Initiative”. Prior to this, CPCG has connections with Southeast Asian countries on many occasions. In August 2017, Yan Hao met with senior Philippine leaders to communicate with them on the participation of CPCG in Philippine infrastructure construction and the layout of Southeast Asia’s market planning. In September 2017, Yan Jiehe met with senior leaders of Indonesia, Vietnam and Myanmar successively in Beijing to explore the future of cooperation.

It is worth mentioning that during the 2017 Week Series of APEC Leaders’ Meeting in Vietnam, senior leaders of Vietnam highly affirmed the important role of the CPCG in the building of “Belt and Road Initiative”. They hope CPCG will further demonstrate the strong strength of the Fortune Global 500 as a private enterprise, and build a bridge between Vietnam and China through infrastructure construction so as to promote bilateral trade and trade.

Following the “Belt and Road”, Following the Tide of Trends
CPCG was founded in 1995, with infrastructure investment, construction and management as its core industries. It has national highway, municipal administration, water conservancy, construction and other general contracting and a number of professional contracting first-level qualifications, as well as landscape architecture design special A-level qualifications.

In 1992, Huai’an Yinjiang Construction Company (the predecessor of CPCG) built three small culvert projects of Nanjing Ring Road. With the spirit of hardship and “losing 50,000 yuan is better than 80,000 yuan”, it worked overtime to complete the project with high quality and efficiency. This loss project gives the company the opportunity to break into the field of highway construction and earn 8.6 million yuan of “the first barrel of gold”. In 1995, CPCG was established in Nanjing and became a black horse in the field of architecture.

From leading BT mode to improving PPP mode, CPCG directly participates in the investment and construction of more than 3000 parks in more than 1000 cities throughout the country. It has successively participated in Shanghai-Nanjing Highway, Shanghai-Zhuhai Highway, Beijing-Shanghai Highway and Beijing-Hong Kong highway as well as Jiangyin Yangtze River Bridge, Nanjing Metro, Taihu Lake renovation, Lanzhou New Area, Lanzhou New City, Dali Haidong New City, Dianzhong Industrial Agglomeration Area, Guian New Area, Zhaoqing New Area and Hainan Meian Science and Technological New Area. A number of national and provincial key projects have been built throughout the country.

Over the past 20 years, CPCG has always adhered to a global perspective as a national enterprise, seizing the opportunity in the trend of development of the times, focusing on national poverty alleviation, accurately contributing to infrastructure construction in the key poverty alleviation areas of Sichuan Liangshan Prefecture, Hunan Xiangxi Prefecture, Yunnan Dali Prefecture and so on.

In 2016, CPCG relocated to Xinjiang and involved in the core area of the Silk Road Economic Belt. Over 400 billion yuan of investment and cooperative agreement were signed with Xinjiang. In 2017, CPCG signed a 450-billion-yuan investment agreement with the government of Guangxi Zhuang Autonomous Region to boost it as a hub for 21st Century Maritime Silk Road. 21st Century Maritime Silk Road HQ was established in Nanning to radiate 10 ASEAN countries.

In Southeast Asia, CPCG is taking Malaysia as a breakthrough, accelerating cooperation with the ten ASEAN countries, and taking the lead in the new pattern of maritime development.

In Central and Western Asia, substantial progress has been made in the cooperation between CPCG and Kazakhstan’s subway projects, Pakistan’s railway projects, Kyrgyzstan’s energy projects and Uzbekistan’s infrastructure projects. Iran has reached 266km highway cooperation intention. The group has signed strategic cooperation agreement with Saudi Arabia to enter the “happy desert” to boost “oasis city”. CPCG has also strengthened its ties with the United Arab Emirates and other countries.

In Central and Eastern Europe, CPCG has also actively promoted in-depth connections with Georgia, Serbia, Bulgaria, Macedonia and Moldova.

Yan Hao said that taking part in the building of the “Belt and Road Initiative” has complied with the development of enterprises, complied with the policies of the country, and adapted to the pace of the times. The development of the world needs the participation of China and Chinese enterprises. CPCG has been established for more than 20 years. In the past 20 years, we have gone very fast. In the next 100 years, if we want to go further, internationalization is the only way.

( full page report by Nanfang Daily)

Link: http://epaper.southcn.com/nfdaily/html/2018-01/18/content_7697868.htm
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