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Hong Kong super-connector

Infrastructure development

Collaborating along the Belt and Road

Opportunities and challenges

infrastructure

The Belt and Road Initiative (BRI or the Initiative) presents a number of opportunities and challenges to consider for local BRI governments, inbound investors and business partners.

Infrastructure development

Infrastructure investment, financing and construction are major areas of initial focus for countries and companies seeking to participate in the Initiative.

Key infrastructure development themes

Project feasibility

To attract private investment and finance into infrastructure, BRI governments will need to promote projects that are financially and technically feasible. This requires careful analysis prior to bringing a project to market, with key aspects including analysis of the underlying economic drivers, costs and key risks.

Project procurement

There are many ways to structure the delivery of infrastructure, including Design-Bid-Build, Design & Build and the various forms of PPP. Selection of the most suitable approaches will be influential in maximising international and private sector interest.

Risk and corporate governance

BRI infrastructure projects present risks that will differ from market to market and project to project. Certain risks will be relatively manageable for international players, such as financial and commercial risks, while others will be less predictable and more challenging, such as corruption and political risks. The identification and optimal allocation of risks between governments and the private sector will assist in lowering risk pricing between counterparties and maximising overall returns. Mitigation strategies and appropriate corporate governance arrangements are also important elements for new entrants to consider.

Stakeholder engagement

Understanding the landscape of local stakeholders is critical to investment success for foreign players. Relevant elements of this include understanding local socio-economic and political drivers, as well as delivering long-term commitment to local communities.

Supply chain opportunities

Infrastructure development will lead to significant knock-on opportunities across the industry supply chain. This includes professional services work for lawyers, architects and engineering consultancies, as well as contracts for construction services groups, materials suppliers, equipment lessors and many others.

The KPMG infrastructure proposition

Dedicated Hong Kong team

KPMG’s Hong Kong Infrastructure Advisory team works with governments, investors, builders and operators across the region, and bring expertise from having advised on some of the most prominent projects in Hong Kong and regionally.

Mainland expertise and networks

Our Hong Kong team is supported by our mainland China Infrastructure Advisory team, bringing deep knowledge of the strategic objectives of Chinese infrastructure players, as well as a wide network of contacts in the mainland market.

Global coverage

Comprised of more than 3,000 dedicated professionals across 110 countries, our global infrastructure network provides us with immediate access to one of the largest pools of dedicated infrastructure advisory professionals worldwide.

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