The One Belt One Road (OBOR) initiative in China is an estimated $5 trillion infrastructure program spanning across Asia, the Middle East, Europe, and Africa.
Almost 70 countries and international organizations have signed up for the mega-infrastructure project, focused mainly on transport and energy including: roads, railways, bridges, ports, power plants and gas pipelines.
OBOR has created vast opportunities for construction companies focusing on infrastructure projects. With so many OBOR projects routinely launching, the question looms: how can companies best structure their project management and obtain finances to begin these projects?
In 2013, China unveiled its vision for One Belt, One Road (OBOR), signaling its intent to fund high-profile transportation infrastructure projects to spur economic development and promote trade.
By 2015, the government had announced 1,043 projects totaling $318 billion in value and promised to streamline approvals and offer tax breaks for public-private partnerships (PPPs or P3s) in public services.
To date, one of the most ambitious projects to be undertaken as part of China’s One Belt, One Road (OBOR) initiative is the 392km Motorway project in Pakistan.
Launched by the NHA (National Highway Authority) of Pakistan and funded by the Chinese government, this project is intended to rapidly expand and upgrade Pakistan’s infrastructure, as well as deepen and broaden economic ties between Pakistan and China. This massive $1.3 USD billion project is divided into seven sections, and each section will be delivered as an independent project to streamline management, maximize efficiency and timeliness of delivery, while maintaining the highest quality standards.
It’s been nearly three years since Chinese President Xi Jinping first announced his vision for One Belt, One Road (OBOR). As China’s vision for OBOR has materialized, it’s clear that the National Development and Reform Commission (NDRC) is keen to green light high-profile transportation infrastructure projects such as railways, roads, ports, and airports.
Because of this, a unique window of opportunity is open for international companies in the capital project and infrastructure space interested in taking advantage of funding from the Chinese, as well as other countries that dot the OBOR routes.
“Everyone from Beijing bankers to Cairo taxi drivers knows and understands the significance of a new Silk Road.” Source
When tremendous business opportunities surface, everyone takes notice.
The Chinese realized this more than 2,000 years ago when they sought to distribute and sell their silk products to the rest of the world. They derived a solution — known as The Silk Road or Silk Trade Route – to connect Asia to the rest of the civilized world.