China Machinery and Equipment Engineering Corporation (CMEC) is an important participant in the energy projects of China-Pakistan Economic Corridor (CPEC), and has made outstanding achievements in the field of traditional energy cooperation, as well as relatively mature considerations and planning in the comprehensive development of future energy projects and new energy development.
Opportunity and Achievement
China Economic Herald: How do you see the significance and role of the construction of the China-Pakistan Economic Corridor under the "Belt and Road" initiative? Under what kind of opportunity did your company participate in the construction of specific projects in the China-Pakistan Economic Corridor?
Fang Yanshui: As a model project of the "Belt and Road" construction, the construction of the China-Pakistan Economic Corridor plays an important role in strengthening regional connectivity, enhancing the space for economic development of China and Pakistan, promoting in-depth bilateral cooperation in various fields, and facilitating the people of the two countries to enjoy the fruits of prosperity.
Founded in 1978, China Machinery & Equipment Engineering Corporation (CMEC) is a peer of China's reform and opening up, as well as a builder and witness of China-Pakistan friendship. As early as 1983, CMEC undertook the construction of the Guddu Thermal Power Station project in Pakistan, which was the first time for Chinese enterprises to undertake international engineering contracting projects in the form of export seller's credit. Since then, we have continued to bring light to the people of Pakistan through the construction of many energy projects such as Jamshoro and Muzaffargo.
In 2013, when the construction of the China-Pakistan Economic Corridor was officially launched, the energy management departments and infrastructure construction management departments of both China and Pakistan took the initiative to approach CMEC and actively explored the feasibility of including CMEC's development projects in the corridor list.
In 2014, after full evaluation, the 3.8 million tons per annum open-pit coal mine in Block II of Thar Coal Field in Sindh Province of Pakistan and the 2x330MW coal-fired power station project in Block II of Anglo-Tar were selected as the "Priority Projects" of China-Pakistan Economic Corridor, which laid the groundwork for the company's continuous and in-depth participation in the construction of the corridor projects. It also lays the foundation for the company's continuous and in-depth participation in the construction of corridor projects.
China Economic Herald: During the construction of the China-Pakistan Economic Corridor, what specific project progress and results have been achieved? What are the effects of the projects on improving local livelihoods and promoting economic and social development? Can you give us some examples?
Fang Yanshui: Because CMEC has constructed many projects, I would like to answer your question by citing two examples with the most distinctive features: one is the Tal Coal and Power Integration Project Complex, and the other is the Nirum Jhelum (NJ) Hydroelectric Power Station Project.
The Thar Coal and Power Integration Project Cluster is a cluster of corridor projects that CMEC has invested in and constructed. Currently, it includes the following major projects: Phase I 2x330MW coal-fired power plant project, Phase I 3.8 million tons per annum open-pit mine project, TEL 1x330MW pit-head power plant project, ThalNova 1x330MW pit-head power plant project, and Phase II 3.8 million tons to 7.6 million tons per annum coal mine expansion project. CMEC is the EPC contractor and shareholder of the above projects, as well as the operator of some of the projects, and has been involved in the financing process of the projects.
The Thar Coal Power Project Cluster is significant on several levels.
Firstly, it is the level of local economic development. The project cluster integrates local coal resources and power demand, and designs a feasible program of coal with power and a full life-cycle technical program and financing program, which avoids the possibility of shirking responsibilities in the implementation of different projects, and strengthens the foundation for the implementation of Pakistan's economic and social development goals based on local resource endowments in a speedy and stable manner.
Secondly, at the level of the local community and people, CMEC emphasizes on the quality of the project, and at the same time, it also focuses on how to bring more benefits to the local people by practicing social responsibility. Up to now, the Tal I and II projects have created about 5,000 jobs for local residents, and many local shepherds have been trained to become skilled industrial workers and wealthy families in the community. CMEC has arranged for 30 students to receive three-year training in the power plant; invited 12 Pakistani youths to further their studies in China; constructed more than 20 elementary school and middle schools, some of which have been put into use; donated hospitals for the local community; and provided more than 1,000 students to receive training in the power plant. put into use; donated hospitals and mobile medical buses for the local area, which are continuously providing free medical services to the residents of Thar area.
Third is the level of domestic economic development. We say that "One Belt, One Road" is a bridge and link for two-way interoperability, which means that the construction of "One Belt, One Road" is beneficial to both domestic and foreign countries***. In addition to improving the local economic and social development, CMEC continues to drive Chinese machinery and equipment and Chinese technical standards to "go out" through the Tal Project Group.
Fourth, the company itself. The Thar project group is an important expansion of CMEC's integration of investment, financing, construction and operation, and its development towards the high-end of the international engineering value chain. The integration mode of investment, financing, construction and operation extends and prolongs the business chain of traditional engineering contracting projects, expands the scope of project operation forward to the development and investment and financing of projects, and backward to the operation and maintenance of projects, and puts forward more complete, more rigorous and more detailed requirements for resource integration ability, innovation ability and risk control ability, which leads to the multi-level development and transformation and upgrading of the company's business, and further enhances CMEC's own level. This has led to the multi-level development and transformation and upgrading of the company's business, and further enhanced CMEC's competitiveness in the international market.
Challenges and Resistance to Epidemic
China Economic Herald: What difficulties and challenges have been encountered during the construction of projects related to China-Pakistan Economic Corridor? How have they been dealt with and resolved? Since the outbreak of Xin Guan Pneumonia this year, what efforts have been made by your company to prevent the epidemic and ensure the smooth implementation of the project?
Fang Yanshui: Up to now, the construction of the China-Pakistan Economic Corridor-related projects has been progressing smoothly in general, but of course there are some on-site security, as well as the business environment, exchange rate fluctuations and other issues, but the above problems are relatively common in the process of overseas engineering construction. As a member of the first national team to go out after the reform and opening up, after nearly 40 years of experience in the overseas market, CMEC has rich and mature experience in the preparation of plans, coordinated response, and timely follow-up to deal with each specific problem.
Therefore, it can be said that the biggest difficulty and challenge we encountered was the severe impact of the sudden epidemic of New Crown Pneumonia on international economic exchanges and cooperation. In spite of this, under the command and assistance of our Embassy in Pakistan, and with the active cooperation of the owner, the company has made every effort to ensure the safety of the project site, assisted in maintaining the safety of the community through thorough and meticulous arrangements and deployments, and meticulous and effective implementation on the ground, and on this premise, made every effort to maintain the construction and operation of the project steadily progressing according to the plan.
Our approach to the strict prevention of the epidemic and the resumption of work and production at the project site included the following:
First, we strengthened the safe deployment of construction personnel. As a result of the epidemic, the number of flights to and from the two countries has been reduced, and the necessary quarantine needs to be carried out before entering the site. For this reason, we plan well in advance and adopt the mode of isolation and arrival in batches to ensure that the construction personnel arrive at the site in a timely and safe manner. In addition to relying on commercial flights, the company also actively coordinates charter flights to meet the needs of the site construction progress.
The second is to strengthen the safe transportation of export equipment. With the gradual alleviation of the domestic epidemic, the production capacity of various equipment manufacturers has been fully restored and large-scale delivery has begun. In this regard, the company has ensured the timely arrival of key equipment and materials for construction by combining various modes of transportation such as sea and air transport.
Thirdly, we have strengthened the safety protection of the personnel entering the site. In order to ensure the prevention and control of safety, we have adopted the "double 14 days" strict measures, that is to say, from the domestic into the site of the personnel need to be first in the company's foreign representative office to complete the isolation of 14 days and the physical state of no abnormality, to the site of the isolation of 14 days without any abnormal symptoms, before being released from the ban on the duty. For the large number of foreign laborers on site, we also put forward graded epidemic prevention requirements according to the nature of their work.
Fourth, we have strengthened the daily prevention and control at the project site. On the construction site, the project team also strengthened psychological guidance with the support and help of the company headquarters, strictly implemented various forms of prevention and control measures such as wearing masks, regular temperature measurement, catering management, office disinfection, meeting management, etc., leaving no blind spots or dead corners, and made every effort to ensure the health and safety of all the personnel on the site.
We have always believed that the health and safety of personnel is the greatest impetus for project construction, and also a fundamental issue that cannot be faulted. the reason why CMEC can achieve such safety and duty perseverance in the face of the ongoing global epidemic is that, in addition to the importance attached by the company and the strong execution ability of the company's organizations at all levels, we should also be grateful to our tenacious optimism and selfless dedication. "Overseas Stalwarts". Some of them have given up their personal leave and have been holding fast overseas for more than 1 year; some of them are fearless of risk and run to the project site during the most severe epidemic, becoming the most beautiful retrograde; some of them take one for many and carry the responsibility of multiple positions under special circumstances and conditions, all for the sake of the smooth progress of engineering construction only.
"Going out" and vision
China Economic Herald: In the process of participating in the construction of the China-Pakistan Economic Corridor, is there any overseas project construction experience to share to more "going out" or will be "Is there any overseas project implementation experience that you can share with more Chinese enterprises that are going out or will go out? At present, due to the superposition of epidemic and other factors, the international external environment has changed a lot, Chinese enterprises go out to face the international situation is becoming more and more complex, how do you think Chinese enterprises should deal with the "One Belt and One Road" in the future, including the construction of the China-Pakistan Economic Corridor will be faced with the unpredictable changes in the external environment?
Fang Yanshui: At present, the international economic situation and business environment are undergoing profound changes, and the industrial and market competition pattern is also undergoing continuous adjustment, so Chinese enterprises going out may no longer have any "empiricism" that can be used as is. But combined with our judgment of the trend and However, combining our judgment of the trend and understanding of our own advantages, there are indeed some basic rules that Chinese "going out" enterprises must follow, especially in the process of implementing the "brush strokes" of the "Belt and Road" construction.
First of all, there is a clear positioning. "Enterprises going out must be mindful of the "two big picture", one is the strategic overall situation of the great rejuvenation of the Chinese nation, and the other is the world's century-old situation of great change. On this basis, we can base on the enterprise's own resource endowment and capability, accurately recognize changes, scientifically respond to changes, and take the initiative to seek changes, relying on the strategic deployment of the country to build a new development pattern of "double cycle", and to cultivate the first opportunity in crisis and open a new situation in the midst of the change. This year, CMEC put forward the "stabilization of the outside and cultivation of the inside" work objectives, is in such a macro, meso and micro closely linked to the combination of the positioning of the company's consolidation of the foundation of development, planting the potential for development of the layout arrangements.
Secondly, the deep plowing in the ground. "The roots and souls of enterprises going out are at home, but the "heart" must be closely connected with the governments and people where the projects are located. This is also the core project of the "Belt and Road" construction of policy communication, facilities connectivity, trade facilitation, financial integration and people-to-people communication. We need to truly understand and explore the real demands of the people of the countries where the project is located, and around this central idea, play to the advantage, planning and design, seek opportunities, create projects, so that we can truly realize the mutual benefit **** win.
The third is to strengthen the wind control. To do overseas engineering projects, the enterprise's own risk identification ability requirements are very high. We treat each project from the preliminary planning to operation and landing, to the later implementation and even operation and maintenance, are adhering to a prudent and responsible attitude, all in order to improve the ability to fulfill the contract, to ensure the implementation of quality. In particular, before "going out", we have to do a good job of country-specific research, due diligence, and have a comprehensive understanding of the project country's security, economy, laws, taxes, foreign exchange, etc., so that we can clearly define the goals and make good preparations to avoid risks.
The fourth is synergy. Overseas engineering construction is not an isolated self-sufficient project, behind it is a complete industrial chain, capital chain, technical standards of service chain. This requires us to do a good job of full internal and external synergies, not only on the landing of a project with domestic and foreign suppliers, industry enterprises, financial institutions, but also to actively promote China, investment in the host country and the developed economies and other economies of the third-party cooperation between enterprises, in order to realize the advantages of all parties to complement each other, the multiple **** win.
The fifth is to establish a brand. Compared with international multinational corporations, Chinese enterprises "going out" time is not long, the accumulation is not much, especially our brand is not loud enough and not bright enough. Therefore, the construction of internationally recognized high-end engineering construction brand, should be the Chinese enterprises to build "going out" soft power key. We need to integrate brand building with engineering quality construction, with overseas market development, with corporate compliance work, with social responsibility work, with cross-cultural management, so that brand building better with the center of the enterprise work seamlessly.
Of course, for each enterprise, it is necessary to take the problem as the guide, take reform and innovation as the grasp, and closely integrate with its own construction needs, firmly establish the concept of market economy, constantly mobilize and stimulate micro-vitality, and constantly upgrade its own professional ability, so that it can build up and continue to improve its core competitiveness in the increasingly complex and unpredictable changes in the external environment.
China Economic Herald: What are the future plans and expectations for China-Pakistan Economic Corridor projects and overseas business?
Fang Yanshui: In the future, we will continue to work actively, seriously, innovatively and effectively to maintain the relationship with "old friends" and establish and consolidate ties with more "new friends", so as to make CMEC's China-Pakistan friendship even higher.
To this end, we will focus on the following four areas:
First, high quality. Not only do we need to maintain the high quality engineering standards that CMEC has created in Pakistan over the years, but we also need to promote "high quality" cooperation at a higher level, including the construction of a smoother supply chain, a more cooperative industrial chain, and a higher level of value chain.
The second is the double cycle. We should take CMEC projects as a bridge and institutions as a platform, and through strengthening cooperation with foreign owners, relevant institutions and organizations, and domestic local enterprises, leading enterprises in the industry, and enterprises at the forefront of technology, we will create a benign interaction mechanism that is suitable for building a new development pattern of "double cycle".
Third, multi-level. In terms of power energy, we will actively match the actual power development needs of Pakistan, and actively participate in the development of various types of power stations and new energy power stations in Pakistan. At the same time, we will deepen our development efforts in the fields of agriculture, environmental protection, housing construction, water supply, power grids and distribution, and other livelihoods and industrial fields, and intensify our innovation efforts to bring newer and better services and solutions to the local market.
Fourth, innovation. We should actively follow up on the digital transformation of infrastructure in the China-Pakistan Economic Corridor, strengthen the construction of new infrastructure, e-commerce networks, smart grids, smart factories, as well as exchanges and cooperation in the field of digital technology according to Pakistan's technological level and degree of development, so as to contribute to the construction of the Digital Silk Road and the Silk Road of Innovation.