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1 De-risking international projects Facilitators: Andrew Hinton, Jeremy Gordon and Kevin Thorpe HVO Business Specialists De-risking international projects
| Date post: | 20-Jan-2015 |
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De-risking international projects
Facilitators: Andrew Hinton, Jeremy Gordon and Kevin Thorpe
HVO Business Specialists
De-risking international projects
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De-risking international projects
1. Introductions 5 mins
2. Willis 10 mins
3. ECGD 10 mins
4. Malaysia Project Example 5 mins
5. UKTI and FCO Support 10 mins
6. Discussion 20 mins
High Value Opportunities Programme
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Willis Presentation
High Value Opportunities Programme
John Naish Executive Director
Willis
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ECGD Presentation
High Value Opportunities Programme
Ali Sherwani Head of Business Development
ECGD
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Dr Andrew Hinton – UKTI Business Specialist
MYS-[6] Klang Valley MRT
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Project Overview
Project Name Klang Valley MRT
Project Number [MYS]-6
Project Value £ 10.5 bn
Accessible Value £ 750M
Project Location Kuala Lumpur, Malaysia
Project Description This is the largest infrastructure project ever
undertaken in Malaysia and will involve the development of two North East – South West radial rail lines and a circle line which together will form a ‘wheel and spoke’ around Greater Kuala Lumpur city.
High Value Opportunities Programme
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UK Business Opportunities
Total Project 180-200kms (three lines)
30% project costs allocated to tunnelling
Opportunities include, master planning, engineering design, cost consultancy, project management, rail systems / signalling, architectural design, land development
Each line will have core elements tendered Tunnelling Underground Stations Elevated stations/guide ways Depots Track Works and power System works / Platform screen doors Rolling Stock Security systems
High Value Opportunities Programme
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The Strategy
Roll out for Line 1 SBK is underway Pre-qualification for Systems packages, Next round of pre-qualification will be for track work,
power, and rolling stock.
Support to position UK capability well underway, over 50 companies briefed and strong UK engagement
UK involvement in:- Master planning, engineering design, construction
planning, architectural design on stations / underground.
Strong political support for KV MRT PM Najib visit – SoS Hammond Business Roundtable UK- Malaysia MOU signed SoS Cable No10 written to PM Najib supporting UK engagement
High Value Opportunities Programme
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Project Timeline
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TenderRFQ / PQQ
Select Preferred
Bidder
Negotiations / Contract
Continuing Opportunities
Q4/ Q4/
20112011Q1/Q1/
20122012Q2/Q2/
20122012Q3/Q3/
20122012
High Value Opportunities Programme
Comments
KV MRT Line 1 SBK
Prequalification / tendering commenced for signalling and train control systems / platform doors (Oct 2011, close date for documents Nov 4th 2011)
Prequalification late 2011/early 2012 for Track and Power elements, electrification, rolling stock
Further opportunities as the project moves forward, around urban regeneration, and also for Lines 2 and 3 (UK companies need to position themselves now)
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The Challenges
High Value Opportunities Programme
Understanding the key government and commercial stakeholders (MRT Co / MMC-Gamuda JV).
Market presence, aligning your company to ‘appropriate’ key local partners.
Build strategic relationships, demonstrating a long term commitment.
Investing in skills and knowledge transfer
Competitive pricing, regional sourcing ?
De-risk the financing (ECGD) / insurance
Be informed www.kvmrt.com.my
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The Virtual Team
Name Location Tel Number E-mail Position
Team Leader /Business Specialist
Andrew Hinton
London
07825 603097
Project Lead
Team Member Derek Griffiths London
020 7215 4773
Head of Rail UKTI
Team Member Bob Docherty
London 07879 661598
UKTI Rail Specialist
Team Member Tony Collingridge
British High Commission, KL
+603 2170 2310
Director Trade and Investment
Team Member Zak Grebe British High Commission, KL
+603 2170 2224
Trade Manager
Team Member Julian McCormac
British Consulate Shanghai
+86 21 3279 2011
HVO Regional Co-ordinator
Team Member Steve Raulston
London 020 7215 4933
UKTI International Grp
High Value Opportunities Programme
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De-risking Projects
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High Value Opportunities…& Risks
危机 / Wei Ji
Crisis = Danger + Opportunity?
Be informed & be protected
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Examples: China & Hong Kong
Chongqing Liangjiang New Area, China Project Number [CHN]-49 Accessible Value £1 bn
China New Energy, China Project Number [CHN]-20 Accessible Value £10.3 bn
Kai Tak Development, Hong Kong Project Number [HKG]-5 Accessible Value £5.7 bn
West Kowloon Cultural District, Hong Kong Project Number [HKG]-8 Accessible Value £1.2 bn
High Value Opportunities Programme
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Selected Risk Issues
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Political Risk Bribery & corruption Due Diligence IP Protection Trade Secrets / Non Disclosure
Legal Issues Contracts & Enforcement Compliance Liability / special purpose vehicles
Project Risk Delivery Risks Reputation Business Intelligence Payment Risk
Organised Crime Personnel Terrorism
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Project Timeline & Risk
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TenderRFQ / PQQ /
RFP / LOI
Select Preferred
Bidder
Negotiations / Contract
Continuing Opportunities
Q4/ Q4/
20112011Q1/Q1/
20122012Q2/Q2/
20122012Q3/Q3/
20122012
High Value Opportunities Programme
Tender: Planning & risk assessment; due diligence; business intelligence; qualification; bid costs; etc.
Selection: Costs; relationships; partners; bribery & corruption; selection (reverse due diligence); IP & trade secrets etc.
Contracts: Legal structures; liabilities; payment terms; conflicts of interest; enforcement; etc.
Operations: Delivery; fraud; monitoring; reputation; payments; profits/repatriation etc.
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Intellectual Property
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• There are many simple and cost effective ways of protecting your ideas and your business.
• Intellectual Property Office•Patent protection abroad•Trade marks abroad•Designs protection abroad•Copyright abroad
• Overseas Business Risk country pages •Up-to-date information on IP in over 90 markets
• IP guides •Including Brazil, China, India, Korea and Vietnam.
• World Intellectual Property Organisation (WIPO)• Information from 184 Member States
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Bribery and Corruption
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• Bribery is illegal!
• Bribery Act• From 01 July 2011 the Bribery Act makes it an offence for commercial organisations carrying on a business in the UK to fail to prevent bribery on their behalf by employees and other associated persons.
•Guidance:http://www.justice.gov.uk/guidance/docs/bribery-act-2010-guidance.pdf •Quick Start: http://www.justice.gov.uk/guidance/docs/bribery-act-2010-quick-start-guide.pdf
• Hospitality and Promotional Expenditure• Bribery Act does not prohibit hospitality
• Reasonable and proportionate
• Facilitation payments• UK law has never exempted facilitation payments
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Organised Crime
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• UK business is at risk of being targeted and exploited by serious organised criminals.
• Overseas Business Risk country pages • Information from our overseas network on organised crime in a wide range of markets.
• Serious Organised Crime Agency (SOCA)•Works with the private sector to improve understanding of the threats faced by industry and shares information to help protect UK businesses.
• SOCA’s annual UK threat assessment describes and weighs-up threats
•SOCA website: www.soca.gov.uk
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Personnel
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• Protective security • Reducing vulnerability to terrorism, cyber attack, espionage etc.• Use a combination of measures: physical, personnel and information security • Overseas Business Risk country pages information from our overseas network on protective security issues in a wide range of markets.• Centre for the Protection of National Infrastructure, (CPNI) advice on protective security
• Information security • At the heart of security planning• Cyber crime: world’s fastest-growing crime sector• CPNI guidance documents
• Physical security
• Personnel security
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Terrorism
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• Businesses can reduce the risk to themselves, their employees and customers by remaining vigilant, being security minded and having good security measures in place.
• FCO website • Country Travel Advice
• Overseas Business Risk country page • Includes a section on terrorism threats, supplied by Government sources
• Centre for the Protection of National Infrastructure (CPNI)• Access to information about general security awareness that’s useful to businesses
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Overseas Business Risk Service
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• Governed by a Joint Advisory Group
• Members from business and ex-officio members from key government departments
• Incl. FCO & UKTI. SOCA
• Information on political, economic, and business security-related risks
• Information and advice on key markets and issues
• Links to more detailed information and services in relation to these risks
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UKTI / FCO Updates
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• Foreign and Commonwealth Office (FCO) diplomats regularly provide authoritative, clear assessments of political and economic factors in key emerging markets.
• The reports are varied and topical and aimed at helping UK businesses to identify and pursue new opportunities and manage risk.
• Further information on a range of risks related to business security, from a broad range of Government sources, is available for more than 90 countries
• Visit www.fco.gov.uk before you travel……
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De-risking Help
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FCO & UKTI - Here to help:
Commercial Diplomacy
Overseas Business Risk service
Information on countries & issues
Advice, information, customised Services
Post: In-market knowledge & contacts
Specialists: Strategic support and business experience
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Discussion
Questions please?
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www.ukti.gov.uk
