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A Decisive Battle for the 13th Five-Year Plan, CPCG Charts a Targeted Poverty Alleviation Course with PPP Mode
Under the background of the sustained downturn of the world economy and the new normal of China’s economy, as the top 100 of the world’s Fortune Global 500 company and the world’s leading private construction enterprise, CPCG once again stands in the wind of the times, devotes itself to the battle of poverty alleviation in the 13th Five-Year Plan with CSR, and explores a precise way of poverty alleviation in the PPP mode.
CPCG is a private enterprise with investment and construction of infrastructure as its core industry. It has national highway, municipal administration, water conservancy, construction, landscape greening and other general contracting as well as a number of professional A-level contracting qualifications, and a special A-level qualification for landscape architecture design. In the early 1990s, with the sincerity and courage of “losing 50,000 yuan is better than losing 80,000 yuan”, we won the first barrel of gold of 8.6 million yuan and entered the Yangtze River from the Canal. Established in 1995, CPCG has become a black horse in infrastructure construction industry.
In 1996, Suqian, a newly built prefecture-level city, urgently needed to build a main urban road. But at that time, the municipal government had just been set up, and the municipal finance was zero. Government leaders found CPCG, hoping to advance funds to build the road. In the case that the government can’t afford a penny to start the fund, the project, which cost 50 million yuan, will be funded by the private enterprise. Responsibility and risks are integrated, CPCG started the project of Suqian city construction, and thus became the pioneer of Chinese BT mode.
The so-called BT, namely Build-Transfer, means “build-transfer”, which is a kind of financing mode that the government uses non-governmental funds to carry out basic non-profit facilities construction projects. There is a road first, and then a city. With the completion of this Hongze Lake Road, all kinds of building materials and heavy machinery needed for urban construction are continuously imported here. A modern city springs up. After 20 years, after continuous overload operation, this road is still intact, without cracks, scars or reparations, known as the conscientious work of craftsman spirit. After the first project of Suqian, CPCG copied the BT mode to the whole country, and insisted on the development in the voice of doubt, which laid a practical foundation for the national promotion of PPP mode today. Hence, Hongze Lake Road became the “first order of China’s PPP mode”.
PPP (Public-Private Partnership), namely the public-private partnership mode, is a project financing model in the construction of public infrastructure. Under this model, private enterprises and private capital are encouraged to cooperate with the government and participate in the construction of public infrastructure.
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.

In 2015, in response to the call of the state, CPCG took the lead in investing in the 13th Five-Year Plan poverty alleviation campaign with the PPP mode, and intensified the investment in infrastructure construction in poor areas.
In order to help poverty-stricken areas overcome difficulties, CPCG, with the social responsibility, capital, resources and wisdom, embarked on the road from Liangshan, Sichuan Province to Hefei, Anhui Province, from Xiangxi, Hunan Province, to Dali, Yunnan Province. The group invited authoritative experts at the national level to organize the PPP forum, together with the local government, explores the opportunities and challenges of the PPP mode in poverty-stricken areas, leading the wisdom development, scientific development and sustainable development of poverty-stricken areas.
Jia Kang, president of China PPP Research Institute and former director of Finance Science Research Institute of the Ministry of Finance, believes that PPP’s participation in poverty alleviation has lessened local financial pressure in the face of urbanization, formed a mechanism of “1+1+1>3” in the supply of public services, and strengthened the stamina of supporting economic and social development. Yao Jingyuan, special researcher in the State Council’s Consultative Office and former chief economist and spokesman of the National Bureau of Statistics, said that enterprises participated in infrastructure investment and implementation of major projects. Closely combined government and social capital, and set up a model measure for a well-off society in an all-round way. Zheng Xinli, chairman of the PPP Research Institute of China and former deputy director of the Policy Research Office of the Central Committee of the Communist Party of China, praised the fact that CPCG participated in precise poverty alleviation through PPP mode, intensified infrastructure construction in poor areas and increased public goods supply. CPCG took the lead in that aspect.
Work with local governments, to combine the social responsibility and coordination ability from government departments with private capital and management efficiency from private enterprises. Establishing a community relationship of “benefit sharing, risk sharing, cooperation and win-win outcome” between government and enterprise. In succession, the group has carried out investment cooperation in poverty alleviation projects with Chuxiong, Liangshan, Xiangxi, Yunnan and Dali, and signed over 300 billion investment and construction orders. A large number of projects have been built.
In this large-scale infrastructure investment and construction, CPCG has grasped a key point-poverty alleviation, and a mode of cooperation - PPP, thus realizing the effective unity of social responsibility and enterprise development. In many poverty-stricken areas, CPCG doesn’t need local government’ funds, all of which are invested by the group in advance. To maximize profits in operation, making PPP a precise cause of poverty alleviation.
In Guzhang County, western part of Hunan Province, CPCG adheres to the three-pronged approach of building poverty alleviation, industrial poverty alleviation and education poverty alleviation. All the tea brands will be purchased, processed and packaged locally, and will be sold mainly to CPCG to build an internal market, so that tea farmers can benefit substantially, the government can get tax revenue, and enterprise can make profits. While awarding Huatuo Individuality Scholarship, the group solemnly promised that all Guzhang students who had financial difficulties would be financed by CPCG.
In Dali Prefecture, Yunnan Province, CPCG cooperated with four counties initially. Since 2013, the group has participated in the construction of road network in the central city of Haidong New Town. Before 2016 National Day, six tunnels of the main road of Haidong New Town were fully connected. At the same time, CPCG and Dali Prefecture Government signed a framework agreement on infrastructure investment of 100 billion yuan. 12 cities and counties in the whole Prefecture also signed cooperation agreements with the CPCG respectively. They have carried out comprehensive cooperation in transportation infrastructure construction, urban operation management, protection and governance of Erhai Lake, poverty alleviation, and tourism transformation and upgrading. With the successive construction of 12 cities and counties projects, CPCG’s strategy of helping Dali to overcome poverty and tackle key problems in an all-round way has landed with the PPP mode.
In order to implement the “Belt and Road” national strategy, CPCG has taken the lead in the layout of Xinjiang to take part in the construction of the core area of the Silk Road Economic Belt. The group has signed investment and construction cooperation agreements with Urumqi, Yili, Bazhou, Changji, Tacheng, Aksu and the Corps totaling more than 300 billion yuan.
Yan Hao, chairman of the Board of CPCG, said that economic and social development cannot be separated from infrastructure construction, and precise poverty alleviation needs infrastructure construction. PPP mode is the preferred mode of infrastructure construction in poverty-stricken areas, and also an important way to win the battle against poverty. He said frankly that he was very grateful to the local governments for their trust to CPCG, which made private enterprise feel both honored and burdened with responsibility. The best way to repay this trust is to do every project well with the fastest progress, the best quality and the lowest cost. CPCG will concentrate resources, capital and wisdom to boost the building of a well-off society in an all-round way. It will go hand in hand with local governments and people.

( a full-page report on the Special Issue of NPC and CPPCC of Yangtse Evening Post)

Link: http://epaper.yzwb.net/html_t/2017-03/06/content_336069.htm?div=-1
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