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Far East Horizon participated in the construction of the "The Road to the Original Dream " to Celebrate the 70th Anniversary of the Motherland

Source:FAR EAST HORIZON CreateTime:2019-10-14

From Yan 'an to Liangjiahe, the original dream remained unchanged.

On the 70th anniversary of the National Day, in this beautiful autumn, traffic on the Yan-Yan expressway from Yan 'an to Yanchuan County keeps flowing.


Yan-Yan Expressway is the only way for people to go from Yan 'an to Liangjiahe, which is also called "the road of original dream" by the public.


According to a staff member of Horizon Construction Investment Group (Far East Horizon's infrastructure investment and operation platform), an investor of Yan-Yan expressway component "Yan-Yan phase II PPP project", operation and maintenance records show that during peak season, 20,000 vehicles can pass through Yan-Yan expressway every day. based on an average of 5 people per vehicle, the number of passers-by per day is as high as 1 million, which is truly a key route.

The completion of this project is of great significance for Yan 'an city to strengthen traffic links with the surrounding central cities, expand Yan 'an city's development space, and improve the regional traffic and transportation environment.

 

Taking the high-quality project of "The second phase of Yan-Yan expressway project" as an opportunity, Horizon Construction Investment Group, as the project investor, entered the PPP third-party operation and maintenance, marking that Far East Horizon has connected the whole chain of investment, financing, construction and operation and maintenance in the field of infrastructure.


The second phase of Yan-Yan expressway project was highly recognized by all parties: why did the project choose Far East Horizon?


"Yan-Yan Phase II PPP Project" is the first highway project constructed by PPP mode in Yan 'an City, Shanxi Province. Horizon Construction Investment Group, as the project investor, is responsible for the whole cycle of investment, financing, construction, operation and maintenance. The cooperation period is 10 years (including 2 years for construction and 8 years for operation and maintenance). The project is part of Yan-Yan expressway with a total length of 8.044 kilometers, including a main line and a branch line. The main line starts from Yangshan Bridge and ends at Yaodian Town East. It is 7.878 kilometers long. It is constructed according to the technical standard of Class I highway. The design speed is 60 kilometers per hour, the roadbed width is 32 meters, two-way six lanes, and sidewalks 3.5 meters wide on both sides. The branch line is the Liujiagou connecting line, which is of Class II highway standard and 166 meters long. In the process of road construction, the flood control function of urban roads and Yanhe river bank is also taken into consideration, and municipal safety facilities such as greening, lighting, traffic lights, guardrails, etc. are provided.


The Horizon Construction Investment Group relied on its parent company Far East Horizon's long-term industrial accumulation and solid financial strength in the field of infrastructure construction to win out among its highly competitive peers and became an investor in the "Yan-Yan expressway phase II PPP project".

 

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First of all, a PPP project needs a lot of capital investment to complete the full cycle of investment, financing, construction, operation and maintenance. As a Hong Kong listed company with the background of a central enterprise, Far East Horizon, China's leading innovative financial service institution, has strong strength and efficient market-oriented operation capability, and is an investor trusted by the government.


Secondly, and more importantly, Far East Horizon has taken root in the construction field for more than 10 years and has formed extensive contacts with thousands of customers in the upper, middle and lower reaches of the industry. It also owns a leading and technologically advanced construction equipment operating company (Horizon Construction and Development Group), which has the organization capability of all-round and whole-process resources such as design, construction, operation and maintenance required for project construction, and can ensure the efficiency and quality of the project and shoulder full-cycle responsibility for the project. In the entire PPP investment community, there are not many enterprises that have the above two capabilities at the same time.


In order to ensure the quality of the project, Far East Horizon always has high standards and strict requirements. For PPP projects developed by the company, the invited construction units are all state-owned enterprises such as China Construction, China Railway and China Metallurgical, and must have special-grade or first-grade construction qualifications. Take the second phase of Yan-Yan Expressway as an example. The project passed the completion acceptance once and was selected as a demonstration PPP project by the Ministry of Finance due to its standardized operation, and received 8 million prize and supplementary funds from the Ministry of Finance. This is especially difficult at a time when government supervision is becoming more and more stringent.


At present, the second phase of Yan-Yan expressway project has entered an orderly operation and maintenance phase. Far East people have taken on the road maintenance work of similar property companies, contracting the road cleaning, sweeping, repairing, lighting, greening, vehicle condition maintenance and billboard operation of 8.044 kilometers of the whole road every day.

 

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The project is operated in strict accordance with Shanghai management standards (representing the leading level in the country). Highly standardized operation and programmed management have been formed in workers' dressing, watering, sweeping and even maintenance time, ensuring the orderly operation of this key road and achieving remarkable operation and maintenance results. Since the operation and maintenance of the project, the local government has also given positive affirmation and highly recognized Far East Horizon's operation and maintenance capability. This is a milestone for Far East Horizon to go deep into the project operation and maintenance management and control the risks of the entire PPP project.


With the "finance+industry" interactive superposition strategy, through investment, finance, construction and transportation integration, forming a unique competitiveness


Under the traditional PPP mode, the social capital of the participants-enterprises participate more in the stages of preliminary research, project establishment, investment and financing, while less in the construction, operation and maintenance of the middle and late stages. However, from a professional perspective, for the government, if the enterprise as an investor can take up the operation and maintenance role in the middle and later stages of the project, it will be more conducive to controlling the risks of PPP projects and ensuring the project quality. Therefore, in recent years, investors who could penetrate into investment, finance, construction and transportation were favored by the government. For enterprises, through investment, financing, construction and transportation, it will also be more conducive to bigger and stronger PPP projects and enhance the added value of projects and services. Therefore, since 2017, Far East Horizon has formally defined the development strategy that links up the whole process of infrastructure investment, financing, construction and transportation.

 

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Fundamentally speaking, intervention in the field of operation and maintenance, through investment, finance, construction and transportation, in-depth participation in and control of PPP projects are highly in line with Far East Horizon's "finance+industry" development strategy. The effective operation of PPP business requires not only the integration of various resources in the financial market, but also a deep understanding of the industry. This is the advantage of the Far East Horizon.


For more than ten years, it has maintained good contacts with thousands of customers in the construction field, and Far East Horizon has profound industrial insights. Far East Horizon's Horizon Construction and Development Group is also a large-scale supplier in the domestic construction equipment operation field, which will provide great assistance during the PPP project construction phase. This is a unique advantage that many competitors in the market do not have. The second phase of Yan-Yan expressway project is a good start. Next, more than a dozen PPP projects in which Far East Horizon participates will enter the operation and maintenance phase one after another.

 

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In order to achieve this goal, Far East Horizon has also made sufficient preparations in the past three years. It has not only established an independent operation platform, Horizon Construction Investment Group, but also trained a group of professionals with the relevant capabilities to match the full cycle of project construction, including preliminary research, partner identification, transaction structure design, project management configuration, accounting, operation and maintenance management, legal affairs, etc. It has been able to lead the full cycle of PPP project operation.

In a word, relying on years of accumulation in finance and industry, and the construction of professional personnel and related management capabilities, the Far East Horizon has successfully opened up investment, finance, construction and transportation.         


From the state-level PPP demonstration project to the Ministry of Finance PPP demonstration project, Far East Horizon only does PPP fine works and strives to build an industry benchmark.

        

Since the first PPP project was launched in 2015, Far East Horizon has undertaken 14 PPP projects, involving a total amount of over 20 billion yuan. For a long time, Far East Horizon has been highly recognized by the government for choosing the best PPP projects and strictly complying with the requirements of the state and the government to operate legally and in compliance. In addition to this "Yan-Yan Expressway Phase II" project being evaluated as a PPP standard project by the Ministry of Finance, the "Riverside Landscape Belt Project on the West Bank of Tuo River in Ziyang, Sichuan Province" which the company is responsible for has been evaluated as a national PPP demonstration project.

 

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Among the 14 PPP projects undertaken in the past, such as Hunan Jishou Project, Hubei Zhongxiang Project and Jiangsu Yangzhou Project were all core urban projects. Yangzhou, as one of the three prefecture-level cities in the central Jiangsu province, had a GDP of 500 billion yuan in 2017, a huge volume and a good momentum of development. Zhong Xiang of Hubei had been commended by Hubei provincial party Committee and provincial government for 7 consecutive years as an advanced county and city with county-level economic development, and was one of the few cities in the country to be rated as the most attractive for tourism investment.


In terms of type selection, the PPP projects carried out by Far East Horizon in the past mostly focused on municipal roads, first-class roads and landscaping. In the future, we hope to continue to deepen in these fields, form a batch of high-quality PPP project assets through strict selection, continue to integrate the industrial chain, accelerate the construction of service advantages of integration of investment, finance, construction and transportation, and provide more competitive services for customers.