Thailand is presenting a strong long-term perspective that addresses the power and energy requirements for implementing large-scale infrastructure projects. As we enter the Chinese Year of the Pig, expanding economies in South East Asia are drawing into closer collaborations, fuelled by private-public partnership initiatives. The Thai Government is presenting forthright strategies from industry leaders and participants, at a pivotal time when the country holds the Chairmanship position of ASEAN in 2019.
Recent articles published by the Bangkok Post provide informative insights into the power development plan (PDP) that has been approved after a number of years. The National Energy Policy Council (NEPC) has approved the plan for 2018-37.
The energy sector in Thailand is managed by the National Energy Policy Council (NEPC), established under the National Energy Policy Council Act, B.E. 2535 (1992), with the National Energy Policy Office (NEPO) acting as the Secretariat. To enhance efficient energy sector management, the Energy Policy Committee (EPC) has been established to assist with the work of the NEPC.
Additionally, the NEPC is responsible for the promotion of energy conservation and the management of the Energy Conservation Promotion Fund as per the Energy Conservation Promotion Act, B.E. 2535 (1992). Accordingly, the Energy Conservation Promotion Fund Committee has been established to assist with the management of the Fund and ensure that allocations are made in compliance with the regulations stipulated in the Act.
Whilst there is still a mammoth task ahead in order to properly coordinate and implement the EEC development plans, smart cities projects, shipping, aviation and technology centres as well as large-scale transportation and infrastructure projects increasing the interconnectivity of Thailand with neighbouring countries and China's BRI, the pace and progress of activities, conferences and processes are clearly being deftly handled.
The new announcements come at a very important time, and ahead of announcements for winners of the bidding process announced late in 2018 for many of Thailand's most lucrative developments.
As 2019 brings in a host of challenges in the global landscape, there is obvious and great progress taking place in Thailand and the ASEAN region. The Chairmanship of ASEAN having passed to Thailand sees a concerted effort by the Kingdom to demonstrate open dialogue. Thailand's Government's website especially for the ASEAN Chairmanship responsibility serves as one of the channels of communication to provide information on important activities, meetings, decisions and outcomes under the ASEAN framework.
Australia's BlueMount Capital group has expanded business interests with a number of financial products and strategic partnerships across the region, and is working closely within the regional development framework. An MOU signed with the Bangladesh Infrastructure Finance Fund (BIFFL) is testament to a growing awareness amongst private investment banking groups addressing the needs of regional Governments to work in Private-Public Partnership (PPP) structures to deliver on the investment requirements in order to successfully implement the many large-scale infrastructure development plans in progress.
Stark Networks Orpheus Energy powering railways with clean technologies solutions.
Thailand's SRT NSTDA sign MOU Agreement
The State Railways of Thailand (SRT) is the largest land owner in the Kingdom; regional cooperation, integration of technology and connectivity of international transportation infrastructure is solidly complementing further growth across property development, food processing and logistics sectors, as well as other business areas.
Thailand's SRT Property Development
Thailand's SRT Property Development
Stark Networks HK is working with the Orpheus Group of companies, Government bodies, investment banking organisations and leading companies in all areas of project planning, development, implementation and management.
An emphasis is placed on development projects that are located in stable economies with attractive growth prospects.
Stark Networks HK Continues Global Investment Drive for ASEAN Projects
Stark Networks List of 100 Top Brands by Wealth 2018
As international trade issues fluctuate due to economic factors, Government policies, tariffs affecting international trade on commodities, and changing transportation networks, it is important to focus on value economics and cross border transactions. Switzerland has a traditional impression in terms of security of investments.
Stark Networks opened for business in 2017 and has already attracted global attention, with private partnerships offering a truly global reach. In late 2018, the principals of Stark Networks approved the move of corporate headquarters to Hong Kong, largely due to the impressive growth seen in ASEAN countries.
Stark Networks saves time and money being positioned closer to the growth emerging markets in the region and a serious look at international banking between Asia and Europe prompted the decision. Investment into such projects via Switzerland is considered a secure and professional avenue for investors desiring to take part in attractive projects with impressive growth opportunities, yet equally important is Hong Kong as an efficient and flexible financial hub. With projects in far away lands, one might ask why choose Switzerland in the first place?
Switzerland was viewed as being one of the most rich, modern and stable economies in Europe and in the world. The economy of Switzerland is one of the world's most advanced economies. The service sector has come to play a significant economic role, particularly the Swiss banking industry and tourism. The economy of Switzerland ranks first in the world in the 2015 Global Innovation Index and the 2017 Global Competitiveness Report. According to United Nations data for 2016, Switzerland is the third richest landlocked country in the world after Liechtenstein and Luxembourg, and together with Norway the only two countries in the world with a GDP per capita above US$70,000 that are neither island nations nor ministates. Switzerland has one of the smallest taxation fees of all developed countries. Its neutral status has helped retain its economic stability and the very low inflation rate ensures that the Swiss franc is one of the world's strongest currencies. Employees have one of the highest salaries per capita from Europe and therefore Switzerland's quality of life is rated among the best in the world.
Switzerland has operated as an open gateway to the markets in Asia, Eurasia, the European Union, Africa and in the Middle-East. However, with pressures mounting on the European Union members, and the block a traditional draw card for investments into Switzerland, the dynamics of international trade and business are shifting.
Largely due to Switzerland's strategic location and developed financial infrastructure, the country maintains itself as a solid and reliable investment state in the European Economic Area (EEA). Switzerland's geographical location in central Europe offers the opportunity for an easy access to over 30 countries by aircraft, boat, car, train and also connects globally using the latest high-speed Internet and digital technologies. Recently, Zug, Switzerland has often been touted as the global capital for blockchain and cryptocurrency companies, however the emphasis appears to be more on blockchain, due to uncertainties surrounding initial coin offerings (ICO).
In July 2016, the city of Zug began to accept digital currency in payment of city fees. In order to advance Zug as a region that is innovating with future technologies, the city council added bitcoin as a means of paying small amounts, up to 200 SFr.. In order to reduce risk, Zug immediately converts any bitcoin received into the Swiss currency.
Zug is a popular location for incorporation of companies, such as the initiation of Stark Networks, Glencore and Nord Stream, with at times more companies registered than residents. Zug has also been referred to as the Crypto Valley by Ethereum co-founder Mihai Alisie, due to the large number of companies engaged in cryptocurrency in the city. The digital currency markets and digital currency exchanges are gaining popularity globally, and this phenomenon is not just restricted to Europe, Asia, and North America. South Africa, the continent’s second-largest economy, continues to experience a cryptocurrency boom despite the price downturns experienced in the market so far in 2018. However, Switzerland's traditional investment banking cartel has placed pressure on institutions, corporations, and lobbying groups, resulting in an obvious rift between traditional policies and new technological advances across many industries and sectors.
Switzerland offers security in a well-developed and properly governed infrastructure, as well as a competitive efficient business environment. The Swiss market is a good testing ground for the introduction of new high technologies and investment into such emerging sectors, and spends the most capital in the world in IT development and IT economic sectors. Although Malta has received attention recently, particularly with the relocation of Binance, it is Switzerland that maintains the trust and respect of the world’s most advanced businesses, investors, and countries that maintain a focus in research and development. It is not all just facts and financials, being as beautiful and as clean as Switzerland is, tourism is a key economic sector, generating 6% of the Swiss gross domestic product.
Business Hub: The Swiss Government created the Swiss “one-stop-shop” in order to attract entrepreneurs interested in doing business in various countries around the world and for foreign entrepreneurs interested in bringing their business to Switzerland. Stark Networks AG can help arrange initial contacts, find specific providers and manufacturers, and also match investment opportunities to portfolio projects, offering a way to find other useful information more efficiently.
Population density in Switzerland (2016)
Percentage of foreigners in Switzerland (2016)
Official languages in Switzerland (2017): German (63.5%) French (22.5%) Italian (8.1%) Romansh (0.5%)
As of 2012, resident foreigners made up 23.3% of the population, one of the largest proportions in the developed world. Most of these (64%) were from European Union or EFTA countries.Italians were the largest single group of foreigners, with 15.6% of total foreign population, followed closely by Germans (15.2%), immigrants from Portugal (12.7%), France (5.6%), Serbia (5.3%), Turkey (3.8%), Spain (3.7%), and Austria (2%). Immigrants from Sri Lanka, most of them former Tamil refugees, were the largest group among people of Asian origin (6.3%). Switzerland is considered as being a very open country for foreigners to work in and has a diverse population. 22% of the whole population is made up from residential and temporary foreign workers which make for a high educated multilingual employment force. It also provides the employers with the choice of four languages besides English and these are German, French, Italian and Romansh. They are highly productive and create high-quality products and services. The majority of Swiss managers have more international experience than average.
Smart Cities Technologies and Investment in Switzerland
For more information on Stark Networks AG and associated investment projects please refer to the contact details at the bottom of this page.
The LMC is the first and a new type of sub-regional cooperation mechanism jointly established by the six countries along the Lancang-Mekong River and an important platform for extensive consultation and joint construction of the “Belt and Road” Initiative. More information on the Five-Year Plan of Action on Lancang-Mekong Cooperation (2018-2022).
Lancang-Mekong countries call for enhancing cooperation
VIENTIANE, July 4 (Xinhua) — Media representatives and government officials from Lancang-Mekong countries have called for further media cooperation to cope with challenges in the digital era. They made the call during the two-day Mekong-Lancang Cooperation Media Summit held Monday through Tuesday in Vientiane, Laos. The six countries of the Lancang-Mekong cooperation are China, Laos, Cambodia, Myanmar, Thailand and Vietnam.
Established in March 2016, the Lancang-Mekong Cooperation (LMC) mechanism offers a new path of sub-regional development featuring equality, sincerity, mutual assistance and kinship. The mechanism is made possible because the six countries share the same river — called the Lancang River in China and the Mekong River when it flows through the other five countries before emptying into the sea. The Chinese delegation attending the media summit was led by Huang Kunming, head of the Publicity Department of the Communist Party of China Central Committee. Government officials attending the summit, held under the theme “Shared Vision, Shared Future,” emphasized the need for media of the six countries to deepen cooperation.
Li Keqiang Attends the 2nd LMC Leaders’ Meeting, Stressing to Forge the Economic Development Belt Along the Lancang-Mekong River Basin and Build a Lancang-Mekong Community of Shared Future
Noting that media from Lancang-Mekong countries bear great responsibilities, Kikeo Khaykhamphithoune, head of the Lao People’s Revolutionary Party Central Committee’s Publicity Department, said that media should be practical, objective and fair to boost mutual understanding between peoples in the region and contribute to the social-economic development of the six countries. Media cooperation of Lancang-Mekong countries could promote connectivity and let the world know the advantage of this region, said Tassanee Pholchaniko, deputy director-general of Thailand’s Government Public Relations Department. Government officials in charge of media should also focus on small-sized media and social media in the digital era, instead of focusing on mainstream media alone, she said. “Mainstream media should use social media to make themselves function better and in a more efficient way,” Tassanee added. Media representatives from Lancang-Mekong countries also have high expectations for cooperation. Tuo Zhen, editor-in-chief of People’s Daily of China, said the Lancang-Mekong cooperation mechanism offered a wide platform for media to play active roles, and media should contribute to building bridges for people-to-people exchange among Lancang-Mekong countries.
Media from Lancang-Mekong countries should strengthen their cooperation to boost regional development, and explore ways to improve accuracy and effectively reach the audience, while playing the role of the media in guiding the society and promoting mutual trust and understanding, said Sounthone Khanthavong, director-general of Lao News Agency. Media of the six Lancang-Mekong countries should be the “amplifier,” “builder,” “cooperator,” and “defender” of Lancang-Mekong cooperation, said Zhou Zongmin, deputy editor-in-chief of China’s Xinhua News Agency. Soy Sophea, editor-in-chief of Derm Ampil News Center of Cambodia, said the Lancang-Mekong cooperation mechanism, put forward by China, would help narrow developmental gaps in the region and boost cooperation between the Association of Southeast Asian Nations and China. Cambodian media will actively participate in Lancang-Mekong media cooperation and are eager to learn from other countries to promote Cambodia to the world, Soy Sophea said. Over 120 people from media, governments and the business sector participated in the summit in Vientiane.
Representatives of CLMVT GO! in attendance at the summit expressed optimism at the collaborative spirit in projects being developed in the CLMVT region.
FOCUS ON SUSTAINABLE DEVELOPMENT
The LMC platform has so far set up the Water Resources Cooperation Center, Lancang-Mekong Environmental Cooperation Center and the Global Mekong River Studies Center to protect water resources and the overall environment in the region.
In November 2017, Power Construction Corporation of China achieved synchronous water closure of its Phase II Nam Ou River-1 and Nam Ou River-7 hydropower stations in Laos, marking a leap in the hydropower construction project. The Nam Ou drainage basin hydropower development plan is a seven-dam cascade project with a total installed capacity of 1,272 mega-watts and annual generating capacity of some 5,000 gigawatt hours, which will greatly alleviate the landlocked country’s power shortage.
Bo Ou, 58-year-old chief of Thong Kham village, where a Nam Ou cascade hydropower plant is located, has witnessed the huge changes in his village. “Since the project started, many villagers have been employed by the project, and we can sell a lot of things to the Chinese employees here. Our lives are so much better,” he said. Now, many Chinese companies have signed contracts to provide electricity for Laos, facilitating the country’s development plan to become the “storage battery on the Indochina Peninsula.”
Workers celebrate the breakthrough of a tunnel on the China-Laos Railway in Laos’ northern town of Muangxay, Oudomxay Province, June 12, 2018. (Xinhua/Liang Wendong) (jmmn)
In 2016, China helped relieve a massive drought in Vietnam by releasing water from the Jinghong Dam in southwest China’s Yunnan Province, located at the upper stream of the Lancang-Mekong River. “I had to spend millions of Vietnamese dong (hundreds of U.S. dollars) to buy a powerful pump and long pipes, but still failed to save our field because the water left in the canals was too salty,” Vo Van Chien, a farmer in Vietnam’s southern province of Ben Tre, recalled, saying, “The best news was that fresh water arrived.” Enditem
Joint patrol vessels with law enforcement personnel from China, Thailand, Laos and Myanmar, sail on the Lancang-Mekong River, March 17, 2015. (Xinhua/Chen Haining)
For more information and articles please refer to Stark Networks AG website and associated social media, working in collaboration with Orpheus Group in the CLMVT portfolio of projects. Xinhua reporters Mao Pengfei, Nguon Sovan in Phnom Penh, Zhuang Beining in Yangon, Tao Jun in Hanoi and Yan Hao in Hong Kong also contributed to the information in this article.
The Belt and Road Initiative (BRI) refers to the Silk Road Economic Belt and 21st Century Maritime Silk Road, a significant development strategy launched by the Chinese government with the intention of promoting economic co-operation among countries along the proposed Belt and Road routes. The Initiative has been designed to enhance the orderly free-flow of economic factors and the efficient allocation of resources. It is also intended to further market integration and create a regional economic co-operation framework of benefit to all. The Silk Road Spirit – "peace and cooperation, openness and inclusiveness, mutual learning and mutual benefit" – is the mantra that has been passed from generation to generation, promoted the progress of human civilization, and contributed greatly to the prosperity and development of the countries along the Silk Road. Symbolizing communication and cooperation between the East and the West, the Silk Road Spirit is a historic and cultural heritage shared by many countries around the world.
Some of the information here is gathered from the Asia Maritime Transparency Initiative with a focus on the implications on Maritime Silk Road, particularly in the CLMVT region. Orpheus Group and Stark Networks HK are working closely in private public partnerships with regional governments, officials and private enterprise; a series of carefully selected projects with a focus on sustainable development to support local communities and rising tourist numbers makes up the projects in the CLMVT projects portfolio.
China unveiled the concept for the Twenty-First Century Maritime Silk Road (MSR) in 2013 as a development strategy to boost infrastructure connectivity throughout Southeast Asia, Oceania, the Indian Ocean, and East Africa. The MSR is the maritime complement to the Silk Road Economic Belt, which focuses on infrastructure development across Central Asia. Together these initiatives form the One Belt One Road (OBOR) initiative designed to enhance China’s influence across Asia.
There is a shortage of infrastructure investment to meet the needs of developing nations across the Indo-Asia-Pacific region and most nations have welcomed the opportunity to bid for Chinese funding. At the same time, there are growing questions about the economic viability and the geopolitical intentions behind China’s proposals. Thus far MSR initiatives have mainly been concentrated in the littoral states of the Indo-Pacific region, especially port-development projects, which is raising questions about whether these investments are economic or military in nature. These large-scale investments are also structured in ways that invite questions about the potential for China to exert undo leverage over the domestic and foreign policies of heavily indebted recipient countries.
The Focus
Chinese state-owned firms have reached agreements with Myanmar to construct a $7.3 billion deep-water port and $2.7 billion industrial area in a special economic zone at Kyaukpyu along the coast of the Bay of Bengal. The strategic town is the terminus of a $1.5 billion oil pipeline and parallel natural gas pipeline running to Kunming in China’s Yunnan Province.
Despite fears that the project could eventually be used for Chinese military access, political and legal restrictions in Myanmar make this unlikely. The project is aimed mainly at helping China avoid the vulnerable Strait of Malacca and aid the development of its southwestern hinterland.
Like many major projects under the Belt and Road Initiative, there are well-founded fears that the project could grant China a dangerous level of economic leverage over Myanmar, especially if the government in Naypyidaw is forced to turn to Chinese loans to fund its share of the port and SEZ, which combined could amount to 5 percent of national GDP.
Kyaukpyu is a coastal town along the Bay of Bengal in Myanmar’s western-most state of Rakhine state. In 2016, subsidiaries of China’s CITIC Group Corporation, including China Harbor Engineering Company, won contracts for two major projects in the town—the dredging of a deep-sea port and the creation of an industrial area in an accompanying special economic zone (SEZ). The port project is valued at $7.3 billion and the SEZ at $2.7 billion. Under the terms of the deal, CITIC will build and then run the project for 50 years with a potential extension of another 25 years.
China recently has won the contracts to develop a deep-sea port at Kyaukpyu and an industrial area in a special economic zone (SEZ) nearby and has shown a visionary initiative to move forward quickly with regional development plans. Kyaukpyu is also the terminus for an oil pipeline and a parallel natural gas pipeline running to Kunming, capital of southwestern China’s Yunnan Province. Those projects reflect a strategic effort by Beijing to reduce its reliance on oil and gas imports through the Strait of Malacca, and a deep-sea port at Kyaukpyu could similarly help China in its drive to develop its inland provinces. The CLMVT region stands to benefit greatly from these large-scale infrastructure projects. Poling references regional concerns about the potential that China would leverage a port at Kyaukpyu for military purposes but pragmatically concludes that at present the overriding fear within Myanmar is China’s potential economic leverage via debt financing. Many critics of China's robust development plans often overlook the fact that other countries in the CLMVT region are also working with each other, and the mutual growth opportunities for the populations and cultures in ASEAN far outweigh the influences of China on any single country in this region.
Myanmar minister dismisses Chinese ‘debt trap’ fears over joint port project
Thaung Tun insists government is keen to push on with deep water project after reports it was negotiating to push down the costs
Myanmar’s government is eager to begin work on a Chinese-backed deep water port project in Kyaukpyu, and a decision is expected soon, the country’s union minister and security adviser Thaung Tun said. He dismissed the fear of a “debt trap”, saying he was confident it would be a “win-win” deal. “We would like to see this project get off the ground,” Thaung Tun, who is also chairman of the Myanmar Investment Commission (MIC), told the South China Morning Post on Friday. “I would say we (China and Myanmar) are negotiating, the process is moving ahead and a decision is imminent.” The assurance follows recent reports that Myanmar is reviewing the port project in a bid to negotiate down the costs. The project, in western Rakhine state, is of strategic importance to connect China with the Indian Ocean and is located at the terminus of oil and gas pipelines bringing fuel to China’s landlocked southwestern provinces. The port would also help reduce China’s need to ship fuel through the vulnerable Strait of Malacca.
Launched in 2013 as “one belt, one road”, the Belt and Road Initiative (BRI) involves China underwriting billions of dollars of infrastructure investment in countries along the old Silk Road linking it with Europe. The ambition is immense, the undertaking complex. China is spending roughly $150bn a year in the 68 countries that have signed up to the scheme. China’s Belt and Road Initiative spans over 65 countries, has been subjected to criticism and claims that it will drag developing countries into debts they could not repay. A target of such criticism is Hambantota port in Sri Lanka, which was handed over to China Merchants Port Holdings on a 99-year lease late last year as a deal to cut government debt.
Belt and Road Initiatives; routes connecting the New Silk Roads
Focusing on five routes, the Belt and Road Initiative takes advantage of international transport routes as well as core cities and key ports to further strengthen collaboration and build six international economic co-operation corridors. These have been identified as the New Eurasia Land Bridge, China-Mongolia-Russia, China-Central Asia-West Asia, China-Indochina Peninsula, China-Pakistan, and Bangladesh-China-India-Myanmar.
Thaung Tun said that Myanmar was aware of the Hambantota case, but that the government believed the project was economically and politically important for the country. “In the case of Sri Lanka, there was this issue, now they have to answer to the debt,” he said.
“We already know what happened to other places, and we will make sure it [Kyaukpyu port] is a workable project. “There are people who said: be careful, you will get into a debt trap. In this world people can have their own opinions, but we will make sure what happens to Kyaukpyu, it will be a win-win situation for Myanmar and China.” The project would be carried out in stages, he said, adding that a vice-minister of planning and finance has been appointed to “move the project forward”.
The project’s initial cost estimate is US$9 billion, according to earlier reports. Citic, a Chinese state-owned investment corporation, has proposed taking a 70 per cent stake in the project, with the remainder split between the Myanmar government and a consortium of local firms.
Thaung Tun said Myanmar needed such bold projects to bridge the “infrastructural gap” with its neighbours, especially as the new government, which came to power two years ago, is eager to bring tangible changes to meet public expectations. He is also optimistic there will be talks to resolve the long-shelved Myitsone dam project in northern Myanmar, which was suspended in 2011 by a previous administration because of environmental and protests in Myanmar.
Orpheus Organics projects present environmentally clean solutions for farming in CLMVT countries
Coupled with the larger projects is a swathe of smaller public private partnerships that are bringing new technologies to growing industrial sectors, agriculture and assisting with energy efficiency as the region develops. Solar, geo-thermal, wind and hydro energy projects are vital contributors to supporting new hotels, residential and business buildings, organic farming, waste to energy processing plants, and the new transportation networks being implemented across the CLMVT region, connecting with Bangladesh, China, Malaysia, India and Singapore.
The Chinese government and state media have repeatedly called for Myanmar to revive the Myitsone dam project, and Thaung Tun is hoping the issue could be resolved as Yunnan province can now generate enough electricity for its use. “Ten years ago, Myitsone dam was a very viable project,” Thaung Tun said. “But now that China doesn’t need the energy from Myitsone dam, I am not sure if China will still insist on this dam going forward.” Describing China as a “close friend and neighbour”, Thaung Tun said he remained hopeful that the two countries could resolve the issue. The project can be built to provide electricity to local demands, which are increasing rapidly. “It should not be a thorn in the side of the two countries,” he said, adding there will be “some negotiation” to resolve the situation. During a trip to China last year, Myanmar’s former president Htin Kyaw tried to explore ways to replace the controversial US$3.6 billion project with others, though the Chinese foreign ministry said its stance had not changed, according to reports.
China-Laos Railway Tunneling through the mountains of Laos
An article this month in China’s state-owned Global Times saying that China has not given up the unpopular project raised eyebrows in Myanmar media. Thaung Tun said Myanmar would like to focus on more important priorities for economic cooperation with China, such as the China Myanmar economic corridor, connecting Yunnan with Mandalay in central Myanmar, which was introduced when Myanmar’s de facto leader, Aung San Suu Kyi, visited Beijing last year. He said a railway connecting Ruili in Yunnan province to Mandalay “would start quite soon” and “in all likelihood it will be extended to Yagon to Kyaukpyu” in Myanmar. When asked about security for Chinese projects in Rakhine state, which is at the centre of the Rohingya crisis near, Thaung Tun said Kyaukpyu port is far from the troubled area in the north. “It is perfectly safe,” he said. “There are Chinese technicians working on the oil and gas pipeline, and they are living there.” The railway development plans for Myanmar are also part of a wider regional focus, including a new railway being built connecting China through Laos to the Gulf of Thailand.
“In the future, we would like to see Chinese tourists coming to Kyaukpyu, as it has beautiful beaches,” he added. The new railways, roads, seas, rivers and air routes will be increasingly filled with Chinese tourists in a rising middle-class population keen on exploring destinations beyond their home country. For more information on CLMVT and Thailand's 4.0 EEC development plans please refer to the reference links and the Stark Networks AG website.
EEC Thailand Collage of Industries
The Belt and Road Initiative cooperation features mutual respect and trust, mutual benefit and win-win cooperation, and mutual learning between civilizations. As long as the countries along the BRI make concerted efforts to pursue common goals, there will be bright prospects for the Silk Road Economic Belt and the 21st-Century Maritime Silk Road, and the peoples of the countries connecting the networks can all benefit from this initiative.
Laos is entering a new chapter in it's history, and is growing to function as a major hub connecting the CLMVT region. Over the past few decades there has been an increasing focus on 'sustainability' initiatives like recycling and transitioning to alternative energy sources, coupled to tourism objectives, waste energy fuels generation, organic farming and sustainable development for the generations to come. Strategic development has been a careful process from the Lao Government offices in the country's capital Vientiane and coordinated into the provinces and across the municipalities. As the project takes form, there are many growth opportunities that are being coordinated to cater for increasing tourism and sustainable business, balancing environmental and biodiversity attributes with social community programmes.
In June 2018 progress on the China-Laos Railway passed an historical milestone as tunnelling continues to create the first railway connecting China to Thailand through the Lao Peoples Democratic Republic, also known as Laos.
This vital transportation link serves part of the infrastructure projects that will connect the CLMVT region to China bringing a new prosperity and expanding on Thailand's 4.0 Eastern Economic Corridor (EEC). Part of the massive undertaking involves constructing the world's tallest bridge.
The Yuanjiang Bridge spans over the Yuanjiang River. Once completed, trains will be able to travel from Yunnan's Yuxi City to Mohan City before entering Laos. It is designed to be 832.2 meters long and supported by six piers, with the tallest 154 meters. The total span of the bridge girder is 249 meters, a world record. "This Yuanjiang Bridge is more than 300 meters long from the NO. 0 pier to the closing point. To guarantee construction precision, the engineering companies will use a series of new technologies, including BIM (Building Information Modeling), some GPS measuring techniques and some advanced equipment, three-dimensional lifting jacks, vertical and horizontal scanning correction devices, and other innovative technologies.
The use of all these new technologies and devices guarantees that the error of closing will be within 5 millimeters," said Xie Lu, chief engineer of the fourth branch of Yuxi-Mohan railway from China Tiesiju Civil Engineering Group Co.,Ltd. Construction of the bridge started in April 2016, but the depth of the river valley and the wind speed all posed great obstacles for the job. "The main pier is supported by 35 pillars each with a diameter of 2.5 meters and a foundation as deep as 75 meters. That is to say the foundation has to be 75 meters in depth. This is a key point in our construction," said Zhu Pinghua, chief engineer of the project department of Yuxi-Mohan railway China Tiesiju Civil Engineering Group Co.,Ltd. With the girder designed to weigh 120,000 tons and beams 21,000 tons, the girder base will support roughly 150,000 tons of weight, when there is no train traveling. In addition, the geological condition underground is very fragile.
Working together Stark Networks provides expert advisory and consultancy services to Orpheus Group. Orpheus Group has launched a portfolio of projects with a range of sustainable growth opportunities, and in private public partnerships they are working hand-in-hand with the governments of Thailand and the LPDR. The CLMVT projects are focused to bring a host of environmentally conscious infrastructure and development projects to provide products and services to the regions growing demands. Construction of the China-Laos railway, one of the key cooperation projects between the two countries has been underway for a few years since being formally announced in late 2015, and the line is scheduled to go into operation by the end of December 2021. The combination of greater transportation links forms new networks of routes linking the CLMVT countries to their neighbours.
The 414-kilometer section of railway will link Boten, the northern Lao town bordering southwest China’s Yunnan Province, and Vientiane, the capital of Laos. According to plan, the China-Laos railway will be extended further South to link into the new Bang Sue Central Station transportation hub in Bangkok, the capital of Thailand. And this construction will connect the Chinese railway network to Thailand's EEC development plan. It also forms a vital part of the Trans-Asian Railway, a project designed as an integrated railway network across Europe and Asia. Further development will upgrade rail links from Thailand, through Malaysia and into Singapore.
The projects in the CLMVT regions play an exemplary role in the Belt and Road Initiative showcasing the enhanced connectivity among China, CLMVT and other Southeast Asian countries. Orpheus Group and Stark Networks HK are proud to be supporting these infrastructure initiatives through the CLMVT regional structured portfolio.
For more information please refer to the social media links and websites referenced in this article.
Here's a brief video overview of the 20 year plan that is currently being implemented.
Further information on the development of smart integrated cities, utilising modern technologies to create clean urban centres.
The companies are working on a number of Private Public Partnership (PPP) projects that are referenced in the Orpheus Group portfolio of projects. Take a few minutes to learn more about the Eastern Economic Corridor (EEC).
Thailand's Eastern Economic Corridor (EEC), a vision and strategy for a growing region.
Air Rail Land Sea Thailand 4.0
EEC Thailand Collage of Industries
Thailand EEC Investment Privileges
Focus on Food Technologies
Thailand Free Trade Investment Property Development and Technology Transfer
THE SEASONS*SIAM - Stark Networks HK, Dawant and Orpheus Group - A Smart City Development
After more than a decade of research on smart urban planning, policymakers have understood that technology is mainly a facilitator, enabler and resource optimizer in smart cities. But at the heart of the smart city story are humans, their interaction with technology and the dynamism and vibrancy that a smart living experience would add to one’s life.
McKinsey has released a June 2018 report titled ‘Smart Cities: Digital Solutions for a More Livable Future’, which assesses the development of smart cities across the globe. The report highlights that for the transition to a smart city, conventional urban cities need to follow a methodic approach and focus on building a sustainable framework. Evolving into a smart city is not an end goal but a continuous process for existing cities. Recognizing the needs and aspirations of the citizens and working on them effectively and dynamically is an important factor that needs to be considered. While invariably every nation wants to move ahead and develop cities in the best possible manner, the roadmap needs to focus more on the human-related facet.
As a collaborative Public Private Partnership (PPP) the Blockchain City*Siam project was conceived in 2017 and in late 2018 Stark Networks HK teamed up with Dawant Company Limited; hence the project is now being referred to as THE SEASONS*SIAM.
Hong Kong company, Dawant brings infrastructure design, innovative transportation solutions and technology to the project. Representatives of Australia's BlueMount Capital are bringing investment banking, financing, and funding experience to the project and are focused on the expanding opportunities in the ASEAN region. Stark Networks HK acts in its capacity to bring the various aspects of the project together, coordinating structured financing, design concepts and a multitude of project components and requirements.
Being managed as a JV partnership, the large-scale real estate development incorporates blockchain technology, district systems energy planning, engineering and modern architecture to create a smart integrated city in the heart of the busy Bangkok metropolis. The PPP Knowledge Lab defines a PPP as "a long-term contract between a private party and a government entity, for providing a public asset or service, in which the private party bears significant risk and management responsibility, and remuneration is linked to performance". Orpheus Group has plans to raise capital for the first phase investment requirement of THE SEASONS*Siam. Via submission, project details shall be made available to sophisticated investors, Thailand's EEC planning committee and Government funding mechanisms. The company is focused on delivering growth opportunities to the CLMVT region.
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Private capital investment is providing a refreshing boost to development partnerships, and technological innovation is helping to design and shape our modern cities utilising and implementing blockchain technology to provide solutions. Responsive solutions are being deployed on multiple levels and across disciplines that are scalable and engineered to accommodate the requirements of communities and populations.
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Cities need to substantially increase the efficiency in which they operate and use their resources. Major efficiency improvements can be achieved by horizontally interconnecting individual systems such as electricity, water, sanitation and waste management, transportation, but also security, environmental monitoring or weather intelligence to help cities to reach their objective faster, more efficiently and with better outcomes.
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In 2016 the first World Smart City Forum was organised by the IEC and hosted in Singapore. In 2017 the event was organised by the ISO in Barcelona.
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Energy is central to nearly every major challenge and opportunity the world faces. However, one fifth of the world population still lacks access to energy and 3 billion people rely on wood, coal or animal waste for cooking and heating. Today, sustainable energy and climate change are big global concerns. The interconnection of grids would open up an unprecedented opportunity to globally share the resources of the whole planet, bringing clean energy to everybody, everywhere in the world.
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Thailand Prime Minister General Prayut Chan-o-cha has outlined his vision of the future for the CLMVT (Cambodia, Lao, Myanmar, Vietnam, Thailand) in which the region seamlessly integrates with larger regional and global economic corridors, with the private sector playing a major role.
Speaking during the opening of a Thailand initiated ACMECS CEO Forum following the 8th Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS) Summit, General Chan-o-cha said ACMEC countries should focus on linking up with China’s ‘Belt and Road’ and the ‘Free and Open Indo – Pacific’ strategies developed by the US and others.
Inviting the private sector to partner with governments throughout the CLMVT, General Chan-o-cha said the private sector will be the driver of regional supply chain integration, which will enable all sectors of the economy to move together simultaneously. The result, he said, would see the sub-region transform into a single production base.
Private Sector Invitation Extends To Soft Development
ACMECS Thailand Prime Minister General Prayut Chan-o-cha: Private sector participation will see the sub-region transform into a single production base
Highlighting Thailand’s aim for seamless infrastructure connectivity, General Chan-o-cha called on the private sector to work with the public sector and civil societies to create secured and friendly environments for cross border cooperation.
“The Asian Development Bank (ADB) estimates that the Southeast Asia region will require as much as $15 billion, accounting for 6 per cent of GDP. The amount is too huge for governments alone to foot the bill, hence we need to forge public-private partnerships”, he said.
It’s not only physical developments where Thailand says it wants to see increased private sector participation, but soft development also.
Inviting the private sector to take an active role in determining targets for human resources development and innovation, General Chan-o-cha challenged the private sector to “seize the opportunities from the economic strength that is emerging within Asia in order to move toward sustainable development and narrow the development gaps.
“Disparity in financial regulations” to allow for more flexibility is still an issue that needs to be addressed he said, adding that “particular focus should be on projects that link with Thailand’s EEC and which can be further linked to key economic corridors within ACMECS” and outside.
Stressing that Thailand’s focus is on power and unity, General Chan-o-cha said Thailand was ready to supply ongoing technical support to ACMECS member states, particularly under the sufficiency economy philosophy programme.
Thailand’s Regional Image Gets a Boost
During the two-day 8th ACMECS Summit leading up to the CEO Forum, Thailand saw its status as a regional driver of growth and diplomacy significantly rise with the signing two documents aimed at boosting regional growth and a proposed infrastructure and development fund as a step toward regional self sufficiency and sustainability.
After adopting the so-called “Bangkok Declaration” underlining the cooperation commitment of the CLMVT cluster, the meeting then agreed to adopt a Thailand-initiated ‘ACMECS master plan’ for regional and subregional development through until 2023.
Aimed at integrating the subregion into global value and supply chains through the application of knowledge, innovation, and access to digital technology, the 2019-2023 ACMECS Master Plan relies on extensive use of PPPs to achieve its goals of an ‘Integrated and Connected Mekong Community’.
Described in similar terms to that used for the EEC — “the first of its kind” — in ACMECS 15-year history, the 2019-2023 ACMECS Master Plan focuses on infrastructure, regulation harmonisation, and human resource development.
Under the plan the subregion will grow to become the ‘de-facto “land bridge” linking the economies and markets of the Indian Ocean and the Pacific Ocean, as well as other parts of Asia and the world. Freer flowing goods, services, and investment will be the result.
Self Sufficient Infrastructure & Development Fund
Leaders of the five ACMECS group adopted the Thailand-initiated 2019-2023 ACMECS Master Plan, which focuses heavily on private sector participation
While Thailand’s EEC pays a key role in inter- and intra-regional connectivity and will see flow-on benefits to neighbouring countries, it was the proposal of a regional development fund where Thailand demonstrated its ability to look beyond its own borders and put some meat on its previous commitments to ensuring regional progression with no one being left behind.
According to a statement issued by Thailand’s Ministry of Foreign Affairs (MFA) the proposed “ACMECS Fund” will help provide a clear, sustainable, and independent source of funds for projects implemented under the 2019-2023 ACMECS Master Plan.
While acknowledging that the support of international organisations, financial institutions, and development partners will be crucial to the funds success, Prime Minister Chan-o-cha reportedly told ACMECS leaders that Thailand was willing to contribute a substantial amount of seed money to kick-start it.
Under Thailand’s proposal the fund will be jointly managed by all five member countries, with government debt being sold via stocks and bonds to capitalise projects.
Citing an official from Thailand’s MFA, Arthayud Srisamoot, Reuters said one of the aims of the ACMECS Fund was to lessen reliance on funding from the likes of China, South Korea, Japan, and India.
According to Reuters China has committed to providing almost $12 billion in loans and grants to CLMVT countries, including a $5.5-billion railway linking Thailand’s EEC with southern China, via Lao PDR.
With a wariness of Chinese dependency now emerging and rising discontent in some quarters to China’s creeping expansionism, the ACMECS Fund reportedly received enthusiastic support from regional leaders, who hope to get it up and running by next year.
Development funding key focus of ACMECS leaders (The Nation)
Thailand spearheads regional fund to cut reliance on big Asian economies (Reuters)
Thailand Proposes New Fund for Southeast Asian Sub-Region (RFA)
About the author
John is an Australian national with more than 35 years experience as a journalist, photographer, videographer and copy editor. He has spent extensive periods of time working in Africa and throughout Southeast Asia. He has covered major world events including the 1991 pillage riots in Zaire, the 1994 Rwanda genocide, the 1999 East Timor independence unrest, the 2004 Asian tsunami, and the 2009, 2010 and 2014 Bangkok political protests. In 1995 he was a Walkley Award finalist, the highest awards in Australian journalism, for his coverage of the 1995 Zaire (now Democratic Republic of Congo) Ebola outbreak. Prior to AEC News Today he was the deputy editor and Thailand and Greater Mekong Sub-region editor for The Establishment Post.
More information on the Eastern Economic Corridor (EEC) and please inquire for information on the Orpheus Group portfolio of projects in the CLMVT region.
FOREIGN companies’ executives reiterated their optimism on the growth outlook of CLMVT countries, highlighting the subregion’s potential to become a key automobile supply chain centre, among others, if barriers to trade and investment are reduced further.
At “CLMVT Forum 2016: Towards a Shared Prosperity” hosted by the Thai government to stress the connectivity of Cambodia, Laos, Myanmar, Vietnam and Thailand, Yutaka Sanada, head of the operations committee for Asia and Oceania and president of Nissan Motor Asia Pacific, said CLMVT had potential to be a supply centre for vehicle production. Each year, the CLMVT countries could produce a million Nissan vehicles.
Joe Kelly, vice president for international media affairs at Huawei Technologies, said Thailand could compete with Singapore, Hong Kong and Shanghai for hosting regional headquarters.
To drive growth among CLMVT countries, he said the development of technology and connectivity were crucial for economic progress. Thomas Tieber, chief executive of DHL Global Forwarding for Asean and South Asia, said tariffs were no longer an obstruction for trading. Tieber said each CLMVT country had different efficiencies to attract foreign direct investment. However, some barriers should be eliminated to help promote growth. Those barriers are regulations, different customs standards and documentation, and transit regulations. CLMVT should harmonise its customs procedures.
Christophe Lejeune, vice president for talent and culture, Upper Southeast and Northeast Asia, of Accor Group, said the five countries were famous tourist destinations. If the region’s infrastructure were improved to ensure connectivity in all modes – including road, marine and aviation – it would be a boon to tourism.
On trade, Commerce Minister Apiradi Tantraporn said the CLMV countries were vital to Thailand, as they received 10 per cent of the Kingdom’s exports.
She expects exports to CLMV to rise by 13.6 per cent this year compared with 2015, though the value in the first four months, at US$6.8 billion (Bt240 billion), contracted by 4.2 per cent. Intra-regional trade is also expected to increase by 16 per cent this year.
Further cooperation was highlighted at the forum. Thailand proposed a “knowledge tank” to gather and share information to help develop small and medium-sized enterprises in the region, while private enterprises proposed an ad hoc trouble-shooter to find solutions to non-tariff barriers quickly.
In a speech, Prime Minister Prayut Chan-o-cha stressed that despite differences among the five countries, they shared some similarities that should facilitate their future cooperation in promoting regional growth and turning the CLMVT subregion into a new growth engine in Asia.
He said action plans among CLMVT countries should be ready within two years to strengthen ties in the areas of production, trade, investment, services, tourism and logistics.
“To form closer ties in all [those] dimensions, each country should forget conflicts and strengthen cooperation to narrow gaps and grow together. Though CLMVT has many similar products, we could find uniqueness and develop the products for the global market,” he said.
He stressed that the five countries should show one another sincerity, mutual trust, respect and commitment to grow together and not to leave anyone behind.
John is an Australian national with more than 35 years experience as a journalist, photographer, videographer and copy editor. He has spent extensive periods of time working in Africa and throughout Southeast Asia. He has covered major world events including the 1991 pillage riots in Zaire, the 1994 Rwanda genocide, the 1999 East Timor independence unrest, the 2004 Asian tsunami, and the 2009, 2010 and 2014 Bangkok political protests. In 1995 he was a Walkley Award finalist, the highest awards in Australian journalism, for his coverage of the 1995 Zaire (now Democratic Republic of Congo) Ebola outbreak. Prior to AEC News Today he was the deputy editor and Thailand and Greater Mekong Sub-region editor for The Establishment Post.