AS159 Asia Today 2005 Template - Asia Today International

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INTERNATIONALContents®COVER REPORTVolume 26 | No.1 | February / March 200825th Year of Publication11-27 ENGINEERS, ARCHITECTSLEAD OFFSHORE PUSHENGINEERING has led the growth ofAustralian professional firms offshoresince 1997, when Asia’s economicdownturn caused them to look beyondAsia – to the Middle East and even USmarkets. In our special report, we examinethe strategies of key players in infrastructuredevelopment, and emergingissues in the market, including an estimatedannual shortfall of US$200 billionin funding as Asia plays catch-up tomeet the needs of major new cities andincreasing urbanisation.Published in Australia since 1983. Published by Asia Today International Pty Limited(ABN 34 109 69 874). Office address: Level 29 Chifley Tower, 2 Chifley Square, SydneyNSW, Australia. Production Office: Suite 2a, 18-20 Waterloo Street, Narrabeen NSW 2101,Australia. Telephone (612) 9970-6477. Fax (61 2) 9913-2003. Mailing address (allcorrespondence): Box N7, Grosvenor Place Post Office, Sydney NSW 1220, Australia.E-mail . Website .11-13 GULF, INDONESIA, INDIA TO LEADLEIGHTON GROWTH – Leighton Holdingshas relocated its international Head Office toDubai, and expects the Middle East to overtakeIndonesia as its largest market outside Australia by end-2008. Chief Financial Officer,Scott Charlton, says India will also be a major market over the medium-term.13-15 KOREA LEADS ON PPPS – South Korea leads Asia in the use of the private-public partnership,but infrastructure demand could force more countries to adopt the concept.15-16 MEINHARDT GOES GLOBAL – When the Singapore marketcollapsed, Meinhardt learned not to rely on a single market, saysShahzad Nasim, the firm’s International Managing Director.17-18 VIETNAM MOVING TO HIGH-PROFILE PROJECTS – GHDCountry Manager, Glen Reinsch, says Vietnam – where GHD islooking to acquire a local business - is 10 years behind China oninfrastructure development, but will close the gap quickly.18-19 WOODHEAD PLUGS INTO AVIATION DESIGN – Australianarchitectural and design firm Woodhead International has seen itswork on Singapore’s Changi Terminal 3 bring potential new projectsin India, Vietnam and Malaysia. Design skills are also drivingrapid growth of BlueScope’s pre-engineered building division inMalaysia.20-21 NEW AVIATION ERA FOR INDIA – Air traffic in India is growing by 25 per cent annually,with the Government scrambling to upgrade aviation facilities through PPPs.22-23 LINKING THE GREATER MEKONG – New highways and railways will open up vastareas of Vietnam, Laos, Cambodia, Thailand, Myanmar and parts of China. In Korea,incoming President, Lee Myung Bak, is fast-tracking a US$15 billion Seoul-Busan canal.OPINIONLeighton’s Scott Charlton – Happyto contribute equity as part of awinning strategy.Shahzad Nasim– Taking on theglobal market.ADDRESSINGTHE BUSINESSISSUES THATMATTER . . .ASIA TODAY INTERNATIONALMagazine offers a differentperspective on Asia. We lookforward, assessing issueswith potential to impact onexisting and potential business.We draw views andperspectives from Asia’s mostinfluential business and government leaders -decision-makers and policy-makers. We identifyemerging business opportunities.SUBSCRIBE TODAY!Address to ASIA TODAY INTERNATIONALReply Paid 7, Grosvenor Place, NSW 1219AUSTRALIA. Or fax (61 2) 9913-2003.Please enter my subscription toASIA TODAY INTERNATIONAL andASIA TODAY ONLINE for one year.I enclose a cheque/credit cardauthorisation for $250.00 (inc GST),or US$280 (airmail outside Australia).Bill me laterTitle: Mr Mrs MsName: ______________________________________________________________________Company:____________________________________________________________________Address:___________________________________________________________________________________________________________Postcode: ______________________________Email:_______________________________________________________________________Am. Express Visa Mastercard DinersAccount number:Cardholder’s Name:5-6 PROPHECY AND ANALYSIS – Will the Soros prophecy panic the Mumbai andShanghai markets? THAKSIN POWER – Will incoming Prime Minister SamakSundaravej really be running Thailand at all?Expiry Date: /THE REGIONSignature:7 SUB-PRIME FALLOUT – S&P says a’triple-whammy’ is coming for Asian banks;Moody’s says Asian central bankers are fence-sitting on rates; The EconomistIntelligence Unit believes emerging markets will offset an OECD credit crunch.Asia is ourbusinessINTERNATIONALONLINEAll contents copyright © ASIA TODAY INTERNATIONAL 2008ASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008 | 3

•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••Leighton - hard at work inAsia & the Arabian Gulf•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••The Leighton Group - Australia’s largest project developer and contractor - has enjoyedworking in Asia for over 35 years. In that time, the Leighton Group’s operating companies haveundertaken, and continue to develop, some of the largest and most complex projectsin Australia and Asia.Today, the Group has a broad footprint on the Asian continent through Leighton International,Leighton Asia and Thiess. Our operating companies are hard at work in countries as far afield asQatar and the United Arab Emirates in the Arabian Gulf, India, Indonesia, Malaysia, Hong Kong,Macau, the Philippines, Thailand, Laos and Vietnam. Opportunities are also being considered inplaces like China, Taiwan, Korea, Mongolia and Guam.With around A$23.5 billion worth of work in hand, a strong balance sheet and over29,000 employees, the Leighton Group is looking forward to its future in Asia. To find outmore about the Leighton Group, including our current projects and prospects, pleasevisit our website at www.leighton.com.au472 Pacific Highway, St Leonards NSW 2065, AustraliaT +61 2 9925 6666 F +61 2 9925 6005W www.leighton.com.au E leighton@leighton.com.au

OPINIONCHINA, INDIA HOLD ECONOMIC KEYOFPROPHECYANDANALYSISIS THE WORLD returning toan equilibrium of 200 yearsago, when China and Indiadrove the global economy . . .ANALYSISAlistair Nicholas*“Prediction is very hard, especially aboutthe future.” – Niels Bohr, Danish physicistand Nobel Prize winner.❝ The Soros prophecycould set panic into theMumbai and Shanghaimarkets ❞BEIJING – With many pundits forecastinga bleak year ahead for the world economy,off the back of the US sub-prime housingmarket collapse and consequent downturn ofstock markets – from New York to London toTokyo to Shanghai to Sydney – is there anysilver lining to the economic doom and gloom?With the news getting more dismal day-bydayso early in the New Year, it would appearnot. Some, including finance wiz GeorgeSoros, have even ventured that the worst globalrecession in 60 years has already commenced.Soros’ view is the most interesting.Because, while he accepts that domestic consumptionin key emerging markets – primarilyIndia and China – could help stave off a worldwiderecession, Soros has muted concernsthat the rebalancing of the international economicpower could lead to political tensionsthat would “plunge the world into recession orworse”.Soros makes his remarks in an Op-Ed, publishedby the Financial Times of January 23.Soros’ thesis is that a recession impactingthe West, particularly the US, could see aresurgence of protectionist trade policies thatcould severely impact the global economywith a prolonged recession. Scary stuff.Unfortunately, Soros did not elaborate afterdropping this bombshell.The US Presidential election notwithstanding,there is little reason to presume a recessionhitting the US and other Western nationswould result in recidivist protectionism.Indeed, even if the ultimate Democrat orRepublican candidates for the White Housebecome born-again protectionists, there is littlereason to believe their new-found faithwould carry into the Presidency. And, even ifit did, that the impact on the world economywould be as big as Soros suggests.China and India both continue to post phenomenalgrowth rates. More importantly, theirgrowth rates now result from two factors thathave become more important than their tradewith the US or Europe.The first of these is domestic consumption.Indeed, part of the US economy’s woes havebeen created by record oil prices – whichpushed past US$100 a barrel preciselybecause India and China’s huge energydemands are placing considerable pressureon supply.Secondly, Soros, and other world economydoomsayers, have failed to take into accountthe growing importance of intra-regionaltrade for both China and India. Both countriesnow conduct more trade with the rest of theregion than with either the US or Europe.While a North American and WesternEuropean slowdown would certainly impactboth nations, it is unlikely to drive them intofull-blown recession. Figures released onJanuary 24 show that China grew by 11.4 percent in 2007, marking 13 straight years ofdouble-digit growth. The Central Governmentin Beijing has been struggling to slow growthfor several years, and a slowdown of Westerneconomies may now assist it in bringing economicgrowth to manageable levels.While India is less desirous of slowergrowth, it, too, is unlikely to take a major blowfrom the West’s woes. India is experiencinggrowth of nine per cent, and is forecast to surpassBritain’s economy in a few years.Rather than either of these economiesbeing massively affected by economic policiesof the US or EU countries, we are probablyreturning to an economic equilibrium of200 years ago, when India and China drovethe world economy. Back then, European andAmerican powers dispatched envoys andwarships to pressure these two to open theirdoors to foreign trade.It is presumptuous to think the US can nowafford protectionist policies when hit by aneconomic downturn. More likely, US (andEuropean) trade representatives will be callingon Beijing and New Delhi with their capsfirmly in hand for trade concessions from theworld’s rising economic stars.The only fear now is whether Soros’ vainglorious prediction could itself plunge theworld into “economic recession or worse”.Sometimes, the world would be better off ifseers kept their prophecies to themselves. Butnow that George Soros has put his moniker tosuch a dismal prediction, it could set panicinto the Mumbai and Shanghai markets.If that were to transpire, no-one isequipped to predict the outcome.* Alistair Nicholas is a former AustralianTrade Commissioner and advisor to theLiberal Party of Australia. He currently headshis own public relations agency, AC CapitalStrategic Public Relations, based in Beijing.■ US sub-prime fallout, page 7.From the pages of ASIA TODAY INTERNATIONALFEBRUARY 1988 – Japan ‘recycles’ US$20 billionin aid for foreign projects; Philippines curbs softloans for industry; Indo-China a growing market foragricultural consultants; Gold lures more miners tothe Philippines.FEBRUARY 1993 – Leighton CEO Wal King saysthe Australian Government is doing too little to helpAustralian companies seeking business in Asia;Volume of infrastructure projects poised to acceleratein Asia; China economic reforms create opportunityfor foreign professional firms.FEBRUARY 1998 – Asia’s economic crisis sees areassessment of mining and infrastructure projectsand a new focus on debt and cost-cutting as bankcredit goes on hold; Coherent cyber laws a key issuefor Malaysia’s Multimedia Corridor; Worse to comeas Indonesia’s rupiah collapses.FEBRUARY 2003 – Singapore seeks to position ashigh-tech hub with 15-year, US$8.2 billion projectknown as ‘one north’; Consumers drive Asia intraregionalgrowth, with Asia, ex-Japan, tipped for 6%growth in 2003; China plans tax breaks for high-techR&D; India stumbles, IMF sees risks; Philippineswindow to 2008 to bring deficit under control.FEBRUARY 2007 – Chinese manufacturers challengingKorea in virtually every industry; Capital controlsspook Thai investors; US housing slump couldtrigger recession; Surprise economic leap for India;Infrastructure gap hits Australian manufacturers.PEOPLEPOWER,THAKSINPOWERWILL incoming Prime MinisterSamak Sundaravej really berunning Thailand at all . . .PERSPECTIVERobert Horn*BANGKOK – As January drew to aclose, Samak Sundaravej finally achieved his➔ CONTINUED PAGE 6ASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008 | 5

ISSN 1445-4300OPINIONINTERNATIONALVolume 26, No. 1,February/March 2008email: asiatoday@asiatoday.com.auwww.asiatodayinternational.comPUBLISHERBarry PeartonEDITORFlorence ChongCHIEF CORRESPONDENTPhilip BowringCORRESPONDENTSHong Kong – K.K. Chadha, James Yapp, India – N.Hariharan, Rajendra Bajpai; Japan – Russell McCulloch;Korea – Peter Sylvestre; Malaysia – Zari Bukhari;Pakistan – Raja Ashgar; Philippines – Abby Tan;Singapore – Andrew Symon; Thailand – Robert Horn;Taiwan – Michael Taylor.ADVERTISINGAUSTRALIA – ASIA TODAY INTERNATIONAL, Level 29Chifley Tower, 2 Chifley Square, Sydney NSW 2000,tel (61 2) 9970-6477, fax (61 2) 9913-2003,email advertising@asiatoday.com.auASIA – Herb Moskowitz, Regional Advertising Manager,The Media Representative Company, 39th FloorExchange Square One, 8 Connaught Place, Central,Hong Kong, tel (852) 2838-8702, fax (852) 2572-5468,email herbmosk@yahoo.com.hkPUBLISHER’S REPRESENTATIVESUSA/CANADAInterMark3 International Communications, Inc.5929 Albervan Street, Shawnee, KS 66216 USA.Tel (91 3) 248-7770, Fax (91 3) 248-7771Contact: Fred Baehner,email: fbaehner@intermark3.comEUROPELIVEpr, 4th Floor, 124 Victoria Street, LondonSW1E 5LA United Kingdom. Tel (44 (0)20) 7630-1100,Fax (44 (0)870) 121-5572, email info@livepr.netContact: Ross Clarke, David Wallen.Office Manager: Khin Htwe SpalivieroProduction: Lana RoachDAILY ONLINE UPDATES – and, for subscribers, aweekly email summary of items you may havemissed. Visit www.asiatodayinternational.com orfor further details of online benefits available tosubscribers, email admin@asiatoday.com.auCOPYRIGHT© All material in ASIA TODAY INTERNATIONALis copyright. Reproduction in whole or in part is not permittedwithout written permission of the publisher.Member of Circulations Audit BoardAverage nett circulation, 9,065 copies perissue (six months to September 2007)®➔ FROM PAGE 6lifelong ambition of becoming Prime Ministerof Thailand. His People Power Party had wonthe most seats during national elections onDecember 23 – the first since a military coupousted the former Prime Minister, ThaksinShinawatra, in September 2006. Now, the 72-year-old Samak, with Thaksin's help behindthe scenes, has drawn five other political partiesinto a Coalition government.But even as he assumed the premiership,Samak was dogged by questions overwhether or not he is the right man to runThailand at this critical and complex juncture– or whether he will really be runningThailand at all.Samak has declared himself Thaksin'snominee, and, in late January, dozens ofPeople Power Party members flew to HongKong, where Thaksin lives in self-imposedexile rather than return to fight corruptioncharges in court. The party members were inHong Kong to lobby for Cabinet posts.Stung by suggestions that he isn't the manin charge of Thailand, Samak reportedly madelast-minute changes to the Cabinet lineupdrawn up by Thaksin, before submitting it toconstitutional monarch, King BhumibolAdulyadej, for formal approval. When thisissue went to press, approval had not yetcome, so no names were formally announced."Thailand is facing difficult and complicatedtimes both politically and economically,'' saysPanitan Wattanayagorn, a political scientist atChulalongkorn University in Bangkok."Samak is already facing legitimacy questionsbecause he's Thaksin's nominee. If he and his❝ Thailand is facingdifficult and complicatedtimes, both politicallyand economically.Samak is already facinglegitimacy questionsbecause he isThaksin’s nominee ❞Cabinet aren't up to the job of solving thepolitical and economic problems, those questionsabout legitimacy will only intensify.''The post of chief concern is that of FinanceMinister. Several prominent bankers, economistsand former Finance Ministers havebeen offered the position, but turned it down.Samak is still hoping that former FinanceMinister, Virabongse Ramakura, will ultimatelyaccept, but the fallback candidate is PeoplePower Party Secretary-General, SurapongSuebwonglee, a medical doctor by training.That has failed to inspire confidence in thebusiness community, especially consideringThailand's shaky economic prospects thiscoming year.Rising oil prices, a strengthening currencythat threatens export growth, recession in akey market, the United States, and inflationrisks are all problems facing Thailand in 2008.At best, most economists are predictingfive per cent growth this year, which isinsipid in comparisonwith other economies inthe region, such asChina and Vietnam. TheBank of Thailand hasbeen struggling to keepthe national currency,the baht, steady atabout 33 to the dollar,but pressure on it to furtherappreciate ismounting.Some analysts, suchas Supavud Sai-cheau,of Phatra Securities inBangkok, believe theSamakSundaravej –declared himselfThaksin’snomineecentral bank should allow the baht to risefreely. That, in turn, would make oil importsmore affordable, and allow the bank to cutinterest rates to spur domestic consumption –which has been sluggish ever since politicalproblems began plaguing Thailand late 2005.But it is exports, not consumption, that hasbeen the chief driver of the Thai economy,and upon which most industries depend.Federation of Thai Industries Chairman,Santi Vilassakdanont, is urging an interestrate cut as part of a 13-point economic actionplan he wants the new Government to adopt.Among those 13 points is a call for the centralbank to retain the capital controls thatsent the stock market plunging in late 2006.The market recovered as the controls wereeased slightly, but Santi and others are stillconcerned about currency speculators andinflows of hot money the controls wereintended to discourage.Other points in the plan are – keeping theValue Added Tax at seven per cent, with noincrease; cutting the corporate income taxrate from 30 per cent to 25 per cent; increasedtax deductions for businesses for hedgingcurrency risks; a progressive tax rate for middleand low income earners; soft loans forindustries using 75 per cent local content; abroadening of the tax payer base; accelerationof infrastructure mega-projects, such asmass transit rail lines; using two per cent ofthe Government budget for research anddevelopment; a corporate income tax cut forbusinesses using 75 per cent local content;speeding feasibility studies for constitution ofa nuclear power plant; and reform of the legalsystem.It's a massive wish list, and it remainsunclear whether or not the new Governmentwill be receptive to the suggestions.Outgoing Finance Minister, ChalongphobSussangkarn, has urged Samak and thePeople Power Party not to focus on short-termpopulist policies to win support, as they couldinflict long-term damage on the economicstability of Thialand.But the People Power Party was elected onprecisely that platform of delivering funds,loans and debt relief to the rural poor.So whoever Samak chooses as his economicczar will find it easier to meet all 13 suggestionsfrom the Federation of Thai Industries,than to heed the one word of cautionfrom Chalongphob.* Robert Horn is Bangkok correspondentfor ATI Magazine.6 | ASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008

THE REGION‘Triple-whammy’coming forAsian banks: S&PHONG KONG — Asian banks face a"triple-whammy" as fallout from the US subprimemortgage crisis continues to wash uparound the world, according to ratings agencyStandard & Poor's.S&P says Asian banks will incur losses fromdirect exposure to structured securities backedby or linked to US sub-prime mortgages.Their liquidity and revenue will suffer due tolinkages between local and global markets and,thirdly, the agency says, banks will feel theimpact on business or local portfolio qualitydue to economic linkages to the global system.S&P says that, while Asian banks' directexposure to the US sub-prime mortgages islimited, a handful of institutions have "relativelysignificant exposures". These include Bankof China (China), Mega InternationalCommercial Bank (Taiwan) and DBS Bank(Singapore).And while Asian banks have been able toabsorb the initial waves of revaluation of USsub-prime exposure, there remains a risk of furtherwrite-downs should global market sentimenttoward such securities and underlyingsub-prime mortgage performance worsen.According to S&P, the vast majority of Asianbanks which it rates have negligible exposure.However, there is a second group with exposureconsidered to be "somewhat significantbut manageable". This group includes a smallnumber of Taiwanese financial institutions."We currently anticipate the losses from suchinvestments will not materially damage eachindividual entity financial profile," S&P says. Itincludes Mega Bank and DBS in this group.But the agency does identify a third group,which includes Bank of China, saying that it issignificantly exposed. "These entities will bearmarket-to-market and/or credit losses on theirexposures, but their existing capitalisation andprofitability will help them cushion any adversefinancial impact with minimal or no change intheir ratings or outlooks."The agency says even banks that may nothold structured securities, but are dependenton wholesale funding from the global debt markets,especially short-term funding, will be vulnerableto liquidity pressure. "To some extent,the dichotomy between global and localdomestic currency credit markets has cushionedAsian banks from the full brunt of the late2007 credit spread repricing."S&P notes that banks in Indonesia and thePhilippines, which have relied on foreign currencyborrowings — more than their counterpartsin other Asian countries — could havesome difficulties in raising funds from the globalcapital market. The linkages between globaland domestic equities market will also adverselyaffect the earnings of Asian banks.It says eventual losses will vary across themarkets, depending on the proportion of portfoliolinked to property, the effectiveness of thebank's risk management systems, and lengthand extent of property market slumps. In thisinstance, banks in China, Singapore and Indiaare relatively more susceptible.The anticipated economic slowdown in Asiain 2008 will come from a slowdown in exportsgrowth, a key factor in the economic strengthof the region. S&P says that banks in Pakistan,Korea, the Philippines and Thailand are relativelymore vulnerable to a global trade slowdownbecause of their closer dependenceon their economies.www.standardandpoors.com/ratingsdirectInflation the coreissue for AustraliaMELBOURNE – The key risk for theAustralian economy in the present global creditcrunch is domestic inflation, says ANZ Bank.With the economy booming, it is becomingincreasingly difficult to escape the conclusionthat Australia’s Reserve Bank has fallen‘behind the curve’ on inflation, the bank says.“Core inflation is already sitting at the top ofthe Bank’s 2-3 per cent target band, and is likelyto have breached it in the final quarter. Theoutlook doesn’t look pretty, either, with pricepressures evident across a number of householdstaples, including food, petrol, rents andutilities. RBA interest rate deliberations in theyear ahead are going to have to balance thethreat associated with slower growth in the USand global economies with the reality of rampantinflation. For an inflation-targetting centralbank, that’s a no-brainer”.www.anzeconomics.comCentral bankers‘fence-sitting’on rates: Moody’sHONG KONG – Most central banks inAsia have chosen to sit on the fence to betterassess their economic conditions and outlook,says ratings agency Moody’s.The biggest challenge facing central banksin 2008 is to sustain economic growth whilecurbing inflation, it says.Assessing emerging economies, Moody’ssays Bank Indonesia has decided to keep interestrates unchanged rather than resume itsmonetary easing cycle. “Given that investmentgrowth is crucial to Indonesia’s economicexpansion, Government authorities will bekeen to see interest rates continue to fall.”For the same reason, Bank of Thailand choseto sit tight (in December), but Moody’s says furtherrate cuts cannot be completely ruled out asthe central bank may need to use monetary policytools to stimulate consumption and investment,depending on how the political situationunfolds. Meanwhile, the Philippines hasentered a ‘loosening’ cycle because it is keento preserve growth amid the uncertain globaloutlook and a rising peso, which continues toSUB-PRIME FALLOUT CONTINUESthreaten export performance.Bank Negara Malaysia looks set to maintainits neutral stance, with the Malaysian economyin a very well-balanced state.Moody’s says the Reserve Bank of India looksset to leave interest rates unchanged in thenear term. “In fact, given that inflation hascooled, a loosening cycle may commencetowards the end of the year, which will help tosupport economic growth amid weakeningexternal demand. On the other hand, China willcertainly maintain a tightening bias due toconcerns about an overheating economy andheightened inflation, which has reportedly disruptedsocial stability. Interest rate hikes lookset to continue, with the PBC also likely to continuetightening reserve requirements, to controllending activity.”Heightened concerns about inflation willallow Taiwan’s Central Bank to continue itsmonetary tightening cycle, says Moody’s.The Bank of Korea in January opted to leaveinterest rates unchanged. “Amid rising externaland domestic uncertainties, the centralbank appears to have no choice but to sit pat orto risk derailing healthy economicgrowth,” the ratings agency adds.www.Moody's Economy.comEmerging marketsto offset OECDcredit crunch: EIULONDON – The credit crunch in severalkey markets, coupled with housing marketwoes, will result in a sharp slowdown in OECDeconomic growth in 2008, according to theEconomist Intelligence Unit.But the impact of this developed worldweakening on the global economy will be partlyoffset by continued robust growth in manyemerging market countries, the EIU says.Its new report, “2008: country by country”,predicts that the world’s two largest developedeconomies, the US and Japan, will be amongthe 10 slowest-growing countries in 2008. Butfour emerging market economies, includingChina, will grow at double digit pace.Continued robust economic growth will,however, will be accompanied by an unusuallyhigh level of political and economic risk during2008. Downside threats include a furtherincrease in the severity of global financial-marketwoes; strong inflationary pressures arisingfrom higher food and oil prices; a sharper-thanexpectedslowdown in world trade growth; andgeopolitical risks, including continued worriesabout Iran's nuclear ambitions, ongoing tensionsin the Middle East and political instabilityin a number of key countries.The full report is available for US$555at www.store.eiu.com.ASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008 | 7

MEETING ALTERNATIVE ENERGY NEEDSTHE REGIONChina agencies signup on Australian‘hot rock’ knowhowADELAIDE – Four Chinese Governmentagencies have signed an exclusive agreementwith Australian hot rock proponent, PetrathermLimited, to identify high prospect geothermalenergy projects in China.ASX-listed Petratherm will help identify projectsbest able to exploit China’s vast geothermalresources for base-load, large-scale andemission-free sources of heat and electricity.The agreement is the first commercial stepupfor Petratherm’s entry into the world’slargest-growing energy market since theAustralian hot rock company achievedapproval, under the Federal Government’s AsiaPacific Partnership Programme, to undertake aunique renewable energy initiative in China.Petratherm will work on a co-operative projectover the next 12 months with four ChineseGovernment institutions – the ChinaGeothermal Energy Society; the ChineseGeological Survey; the Chinese Academy ofSciences; and the China Institute of Geo-Environment Monitoring.Petratherm’s Managing Director, Terry Kallis,describes the project as a major opportunity forAustralian geothermal know-how to ultimatelymake a substantial contribution to global greenhousegas abatement. “Significantly, the intellectualproperty generated by the project will bejointly owned by Petratherm and the fourChinese agencies,” he says. “We also retain theright to bring in joint venture partners, as andwhen required, to develop those geothermalprojects we identify over the next year asexhibiting the earliest commercial opportunity.Kallis says China boasts more than 40 recordedgeothermal sites, some with the potential toproduce around 1400 megawatts of power.www.petratherm.com.au/Nanjing base forglobal sales ofVmoto scootersPERTH – An Australian company hasbegun construction in Nanjing, China, of anadvanced scooter assembly plant, targettingannual revenue of more than AUD100 million by2011 for ASX-listed Vmoto Limited.Stage 1 of the 10,000 sq m plant is expectedto be operational by mid-year. Stages 2 and 3,will provide capacity for 200,000 scooter andengine units annually for export to Vmoto’sglobal client base in more than 100 countries.Vmoto’s Managing Director, Patrick Davin,says Vmoto is one of the few independent foreign-ownedenterprises given approval toestablish and operate such facilities in China.Pre-orders account for the entire 15,000 scooterrun in the Nanjing plant’s maiden start-up period.Vmoto earlier acquired the Shanghai-basedFreedomotor Company Limited, one of China’slargest independent distributors and exportersof scooters, motorcycles, ATVs and hi-performanceoff-road karts. Freedomotor has distributionrights in more than 50 countries.AUSTRALIAIN ASIAINDIA ADOPTING HYDROGEN-GAS BLENDPERTH – A decision by the IndianGovernment to have a fifth of the country’svehicles running by 2020 on new, lower emissionhydrogen-gas fuel blends, has been welcomedby an Australian company at the forefrontof developing and marketing such fuels.ASX-listed Eden Energy says the decision isa significant boost to it’s first-mover advantagein establishing a competitive foothold in alternativelow-emission fuel supplies for India’stransport and power generation markets.“We have been actively and successfully promoting,marketing and trialling Eden’sHythane® fuel, a blend of hydrogen andmethane gas, in India for two years now,” saysEden’s Executive Chairman, Greg Solomon. Headds that India is expected to lead world conversionrates in the next 10-12 years to alternativefuels, particularly hydrogen-based blends.“The Government’s decision sends a clearsignal that India’s energy economy will becomeincreasingly hydrogen-focussed”, Solomonsays. “That can be expected to precipitate arush for fuel technologies able to service publictransport needs and both back-up and base-loadpower generation requirements.“The pace at which these technologies andfuel blends is introduced will burgeon in theCBA Branch forHCMC in AprilSYDNEY – Commonwealth Bank ofAustralia has won approval from the State Bankof Vietnam to open a branch in Ho Chi MinhCity, the bank’s first in Vietnam.Garry Mackrell, Commonwealth Bank GroupExecutive, International Financial Services,said that, with some 300,000 Vietnamese peopleliving in Australia – one of the largest populationsoutside Vietnam itself – and moreAustralian visiting Vietnam every year, thenew presence represents a strong opportunityfor the Bank. "Vietnam continues to be animportant economic partner to Australia,” hesaid. The Branch is expected to open in April.very near term because of a campaign by manyIndian states to rush the roll-out of gas distributionnetworks able to service fuel-blenddemand.” The Government decision to targethaving all natural gas-powered vehicles runningon a mixture of hydrogen and natural gaswithin 12 years is expected to impact one millionvehicles, 20 per cent of the market.Eden’s drive into India’s alternative energymarkets has already seen the Perth-based companysecure agreement with the major Indianengine manufacturer, Ashok Leyland; GujaratState Petroleum, one of India’s largest Stateownednatural gas producers and retailers; andthe world-ranked Larsen & Toubro, the largestengineering group in India. The agreementwith L & T covers the manufacture and marketingthroughout India of Eden’s entire range ofhydrogen and Hythane® technologies.The Ashok Leyland partnership is a 10-yearagreement to develop Hythane® versions ofAshok’s natural gas bus engines (Ashok currentlymanufactures more than 11,000 busesyearly and provides the major share of all metropolitanState transport buses in India).The agreement with Gujarat State PetroleumCorporation provides for joint demonstrationand promotion of Hythane® as a vehicle fuel.Westpac Branchopen in ShanghaiSHANGHAI – Australia’s WestpacBanking Corporation has opened a Branch inShanghai following approval from the ChinaBanking Regulatory Commission. Westpac hashad a permanent presence in China since 1982through its representative office in Beijing.Westpac General Manager, Asia, YoganRasanayakam, said that, given the deep tradinglinks between China, Australia and NewZealand, it made good business sense to establisha Branch in China’s financial capital. “Inparticular, it will assist customers who are benefittingfrom China’s demand for Australia’sresources and New Zealand’s agricultural products,”he said.ANL, USL realignthree trade-lanesMELBOURNE – U.S. Lines (USL) andANL have made a major realignment of theirservice structure in three key tradelanes.USL & ANL’s joint service will turn its shipsNorthbound from Australia and New Zealand.They will no longer operate the presentTriangle Service around the Pacific Rim, butinstead will initiate a dedicated North/Southservice from Oakland/Los Angeles to/fromAustralia/New Zealand. John Lines, ManagingDirector of ANL, says the initiative will significantlyimprove Northbound transit times fromAustralia, and will, for the first time, offer acompetitive alternative to exporters from NewZealand to the US West Coast.USL & ANL will transfer their Transpacificvolumes aboard CMA-CGM’s Pearl RiverExpress service effective mid-February, with a12-day transit from South China to LA. ThePearl River Express provides weekly fixed daysailings from Xiamen, Chiwan, Hong Kong,and Yantian, direct to Los Angeles andOakland.8 | ASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008

Step in ZERO - it’s the way of the futureInternational professional services company, GHD, recently showcased what can be achieved in anAppropriately named ‘zero’, the building concept was unveiled at GHD’s world-class sustainabilityforum, titled OUR PLANET - LEAVING A LEGACY, where the Keynote Presenter was The HonourableThe design was evaluated according to the Green Star rating system, a framework developed bythe Green Building Council of Australia as a comprehensive, national, voluntary environmental ratingThe design benchmarks current best-pactice building design worldwide and has improved theseAt GHD we believe innovation and creativity is needed to overcome the challenges that are facingFor more information please contact:Jeff FokGHDT 852 3658 8000 F 852 3658 8088 EW

BUSINESS ACTIONTHE MONTH IN REVIEWThe informationheartbeat of AsiaASIA PULSE is a jointventure involving theresources of (AAP) – AustralianAssociated Press Pty Ltd(Australia); (ANTARA) – LKBNANTARA (Indonesia); (CNA) –Central News Agency (Taiwan);(DPM) – DubaiPhotoMedia (Dubai);(IRNA) – Islamic Republic NewsAgency (Iran); (Nikkei) – NihonKeizai Shimbun Inc (Japan); (ONA)– Oman News Agency (Oman);(Pacnews) – Pacific Islands NewsAssociation; (Pajhwok) – PajhwokAfghan News (Afghanistan);(PNA) – Philippines News Agency(Philippines); (PPI) – PakistanPress International (Pakistan);(PTI) – The Press Trust of India Ltd(India); (TCA) – Times of CentralAsia (Central Asia); (UNB) – UnitedNews of Bangladesh (Bangladesh);(UzReport) – UzReport.com(Uzbekistan); (VNA) – VietnamNews Agency (Vietnam); (XIC) –Xinhua Information Centre(China); (Yonhap) – Yonhap NewsAgency (Korea); and sources inMalaysia and Singapore.INDONESIA TO BOOSTSHARIA ECONOMYJAKARTA – The President of Indonesia, SusiloBambang Yudhoyono, said the Government willinclude sharia economy in the national agendathis year to boost development. Yudhoyonopledged that the Government will remove legalrestrictions hampering development of thesharia economy. He said he was optimistic thetarget for the sharia banking industry set byBank Indonesia could be achieved. He askedthe Ministries of Justice, Finance and ReligiousAffairs to speed up preparation of a draft law onsharia State securities.© Asia Pulse Pte Ltd.CHINA’S CENTRAL BANKRAISES RESERVE RATIOBEIJING – China's central bank raised therequired reserve ratio for commercial banks byhalf a percentage point as of January 25. Theratio went to 15 per cent, the highest since1984. This increase, the first this year, comes amonth after the ratio was raised by a percentagepoint on December 25. The People's Bank ofChina said the adjustment, part of its stringentmonetary policy, is to draw back excess liquidityat banks and curb overly fast credit growth.Excess liquidity is a major challenge for theGovernment as it could result in bubbles andeconomic overheating.HONG KONG FOLLOWS U.S.,CUTS BASE INTEREST RATEHONG KONG – The Hong Kong MonetaryAuthority, the de facto central bank, on January23 lowered its Base Rate by 75 basis points to5% with immediate effect, according to a presetformula. The reduction followed the 75 basispoints cut in the US Federal funds target rateovernight, the Monetary Authority said. TheBase Rate in Hong Kong is the interest rateforming the foundation upon which theDiscount Rates for repurchase-agreementtransactions through the Discount Window arecomputed.KOREA WOORI BANK SETS UPSUBSIDIARY IN RUSSIASEOUL – Woori Bank (KSE:000030), SouthKorea's No. 2 lender by assets, has set up awholly-owned subsidiary in Russia to helpexpand its overseas network. Woori Bank, theflagship unit of Woori Finance Holdings(KSE:053000), launched Zao Woori Bank inMoscow on January 9, becoming the first SouthKorean lender to set up a subsidiary in Russia.The Russian unit is part of plans by Woori toexpand its global network. It aims at opening200 branches around the world.U.S. FUND COMPLETES TENDEROFFER FOR SHINSEI BANKTOKYO – US fund J.C. Flowers & Co. has completeda tender offer for 22.7% of the ShinseiBank (TSE:8303), making it the Japanese bank'stop shareholder. J.C. Flowers will add the 22.7%stake to its existing interest, replacing theGovernment-run Resolution and CollectionCorp. as the bank's largest investor. In addition,the fund plans to buy 50 billion yen (US$467 million)of new shares to be issued in February bythe bank. As a result of that, the fund's ownershipwill increase to 32.6 per cent.VIETNAM TO BUILD MAJORSEAPORTS IN 2008HANOI – Vietnam National Shipping Lines(Vinalines) plans to carry out several major projectsat seaports in 2008. Construction of theVan Phong international transit seaport, in thecentral province of Khanh Hoa, and the LachHuyen deep water port, in the northern city ofHai Phong, will start in the first quarter of thisyear. Van Phong port will have capacity to handle300 million tonnes of goods per year andEach day Asia Pulse creates up to 300 items of news, business opportunities,expert commentary and industry profiles covering over 30 countries and over 50industries across Asia. Asia Pulse is a unique joint venture involving the resourcesof Asia's major news and information groups.receive 400,000-tonne ships. Vinalines will alsobreak ground for construction of three wharfs atCai Lan port in northern Quang Ninh provinceto receive 40,000 DWT ships, and five newwharfs for 20,000 DWT ships at Dinh Vu port inHai Phong.CHINA PLANS SECONDWEST-EAST GAS PIPELINESHENZHEN – China has laid out a primaryplan for its second pipeline of the West-Eastnatural gas transmission project. Constructionof the 8,794 km gas pipeline will consist of onemajor line and eight sub-lines and involveinvestment of some 143.5 billion yuan (US$19.8billion). The pipeline will carry natural gas fromcentral Asian countries and Xinjiang to the economically-prosperousbut energy-thirsty easternand southern China areas, including Shanghaiand Guangdong Province. Construction willbegin this year and the pipeline is expected togo into operation in 2010.CHINA'S INCOME FROM TOURISMTOPS US$150 BILLIONBEIJING – China's income from tourismtopped 1.09 trillion yuan (US$150 billion) in2007, and is expected to reach 1.2 trillion yuanin 2008, said Shao Qiwei, Director of the ChinaNational Tourism Administration (CNTA). Shaosaid China received 132 million tourists fromoverseas in 2007, up 5.5% year-on-year, ofwhich 54.72 million spent at least a night inChina, up 9.6%, to earn China US$41.9 billion,up 23.5%. China retained its status as theworld's fourth-largest destination for foreigntourists in 2007.CHINA-ASEAN TRADEHITS US$200 BILLIONBEIJING – Trade volume between China andthe Association of Southeast Asian Nations(ASEAN) hit US$202.6 billion in 2007, up 25.9%year-on-year, the China-ASEAN BusinessCouncil said. The two sides originally expectedtrade volume to reach the US$200 billion markin 2010. China-ASEAN trade volume first surpassedUS$100 billion in 2005.CHINA TO START HIGH-SPEEDBEIJING-SHANGHAI RAILBEIJING – Construction of the high-speed railwaybetween Beijing and financial hubShanghai – a five-year project, was to begin onJanuary 18. The Ministry of Railways will contribute78.9% of the total investment, estimatedat 160 billion yuan (US$22 billion), while theremaining 21.1 per cent will come from otherinvestors. China hopes to run the China RailwayHigh-speed (CRH) train, with a speed of 350 kmper hour, on the new railway. On completion in2013, the high-speed railway will cut travel timebetween the Chinese capital and its largesteconomic hub from the current 10 hours toabout five hours, and double existing transportcapacity of 160 million passengers annually.Contact: Asia Pulse Production CentrePhone: (612) 9322 8634Fax: (612) 9322 8639http://www.asiapulse.comEmail: asiapulse@asiapulse.com.au10 | ASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008

PROFESSIONAL SERVICESENGINEERING LEADS OFFSHORE MARKET PUSHThe Gudang Hitam coal mine at Sanga-Sanga, near Samarinda in East Kalimantan – Leighton International has a US$60 millioncontract over five years for overburden removal, coal mining, handling and delivery; (inset) Leighton CFO Scott Charlton.Gulf, Indonesia, India tolead Leighton’s growthAUSTRALIAN civil engineering major, Leighton Holdings, hasrelocated its Leighton International Head Office to Dubai, andexpects the Middle East to overtake Indonesia as its largestmarket outside Australia by end-2008. But Leighton’s ChiefFinancial Officer, Scott Charlton, is also bullish on Indonesia,where subsidiary Thiess is heavily involved in mining and toll roads.And he says India – where Thiess-Leighton has formed a jointventure – will be a major market over the medium-term . . .Florence ChongEditor, ATI MagazineSYDNEY – The Middle East is poised tobecome the largest offshore market for theLeighton Group, which invested AUD870 millionto acquire a 45 per cent stake in the Gulfengineering company, Al Habtoor, last September.The acquisition immediately deliveredsome US$1 billion of work in hand, and positionedthe Al Habtoor Leighton joint ventureamong the top three construction companies inthe United Arab Emirates and Qatar.Leighton International, which covers thegroup's operations from Indonesia to India andthe Middle East, has since relocated its corporateHead Office to Dubai.“The Middle East is likely to become ourlargest market outside Australia by the end ofthis year,” says Scott Charlton, LeightonGroup's Chief Financial Officer.At the time of the Al Habtoor acquisition,Charlton said it would boost Leighton's revenue,in 2007/08, by AUD800 million, and heforecast that revenue for Al Habtoor-Leighton inthe 2008-09 year would be more than AUD3.2billion – up from AUD2.75 billion this year.The Leighton Group itself expects to lift netprofit by 30 per cent this financial year – upfrom last year's AUD450 million. The value ofwork in hand was at a record level of AUD24.5billion as of November last year.Leighton entered the Gulf region just overCONTINUED PAGE 122 ➔FUNDING SHORTFALLS THE BIGGEST CHALLENGE FOR INFRASTRUCTUREENGINEERS have led the growth ofAustralian professional firms offshore since1997, when Asia’s economic downturncaused them to look beyond Asia – to theMiddle East and even the US markets.Asia has lagged in infrastructure developmentover the past decade, and now facesfunding shortfalls of up to US$200 billionannually as it plays catch-up to meet theneeds of major new cities.The funding dilemma poses challenges forforeign contractors, who will need to considertaking equity positions in, for example, tollroads,or seeking working capital guaranteesfrom their own government credit agencies.The recent example of a Hong KongGovernment tender which provided no upfrontor progress payments over the 18-monthlife of the contract is a case in point.There is also the spectre of soft loans beingoffered by individual governments seeking totie up major infrastructure projects andsecure resource deposits. Beijing is pursuinga ‘China Inc’ approach to trade and investmentin sub-Saharan Africa, and could steal amarch in other countries.In this special report (pages 11-27), weexamine the strategies of key players in infrastructuredevelopment, and emergingissues in the market . . .ASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008 | 11

TAKING EQUITY IN INFRASTRUCTURE➔ FROM PAGE 11two years ago, when it worked on the City ofArabia development. It then won its first majorproject, the US$407 million Al Shaqab equestrianproject, in Doha, Qatar.Even though it had a small presence,Leighton was approached to take on otherwork. "We could not handle the work withoutadditional capability," Charlton told ATI.He describes the tie-up with Al Habtoor as amutually-beneficial partnership. "We were lookingaround to see how wecould expand our operation,and Al Habtoor was lookingto take its company to thenext step." Charlton says thepartnership is a "fantastic fit"with the Gulf company,which focusses on buildingand local contacts. Leightonis bringing in its civil engineeringskills. The Group iswell-placed to look at otheropportunities, including public-privatepartnership (PPP)projects in Abu Dhabi, theUAE capital, he says.According to the UAEYearbook, Abu Dhabi (thecapital) has plans for morethan US$120 billion in infrastructureprojects over thenext four to five years.Leighton has also entereda joint venture in India withthe Gulf firm, Emmar MGF, which paves theway for greater participation in India's activebuilding sector. India is another relatively newmarket for Leighton, which went there initiallyto build factories for multinational companieslike Nokia. "India will be as big a market for usas Indonesia is over the medium time-frame –we are putting a lot of time into developing thismarket,” says Charlton. “India took off quickerthan the Middle East, but growth will be fasterin the Middle East."Leighton wants to increase its exposure inIndia's infrastructure sector. Charlton, a formerHead of Transport and Infrastructure, AsiaPacific, with Deutsche Bank, says India'sNational Highway Authority has developedsome good toll roads, and Leighton wants to getinvolved. It is constructing two toll roads inIndia with local partner Oriental StructuralEngineers (OSE). The Australian company hasinvested "small equity – a couple of hundredmillion dollars" – in these projects. Charltonsays: "If the returns are commensurate with therisks, we are happy to contribute equity as partof a winning strategy." Leighton is prepared toinvest in economic infrastructure projects inHong Kong, Indonesia, India and thePhilippines.Leighton is doing some work – building nearshorepipelines – in India’s oil and gas sector.More particularly, it has been looking at India'smining sector in the past three years. "We holdout great promise for the mining sector. TheIndian Government has been changing the wayit hands out coal blocks, to allow private developmentaround steel mills and power plants.Coal in these blocks cannot be exported, butcan be used by the steel mill or power plant."Leighton's subsidiary, Thiess Leighton India,signed a heads of agreement in November lastyear for its first mining project with the AbhijeetLeighton operations at ABKLoa Janan coal mine in EastKalimantan.Group. The project, worth AUD1.5 billion, willinvolve development and 20-year operation of agreenfield open-cut coal mine, with output tobe used for Abhijeet's steel plant and itsplanned mine-mouth power station project.Charlton says that, while Coal India (the nationalcoal body), does not outsource mining, intime it could choose to go down this track toimprove delivery and lift mining capacity."We hope that, in the next year or so, we willbreak into this sectorbecause we think long-termcontract mining has a greatfuture in India. India has ahuge need for power.”India also mines as muchiron ore (150 million tonnes ayear) as coal, and, through itsacquisition of the Queenslandmining company, HWE,Leighton has become theworld's largest contract minerfor iron ore – as it is for coal.While Indonesia has lostfavour with many foreigninvestors in the past decade,it remains Leighton's largestoffshore market, and doeshave, according to Charlton,good growth prospects. "Wehave 30-40 per cent of thecontract mining market inIndonesia, including severallife-of-mine contracts,” hesays. “Last year, we added an AUD600-millioncontract for a new client, PT Wahana BaratamaMining."Charlton is encouraged by the opening of themining sector as Jakarta eases some restrictions."We are starting to see more exploration,"he says. But Indonesia has been disappointingin the infrastructure sector. Despite several falsestarts, Indonesia is yet to seriously embark onmajor infrastructure development.In the past two years, Leighton has beennegotiating on three toll roads there. It is morecomfortable with projects such as toll roads, andports, Charlton says."The biggest issue for us is getting theGovernment to commit to land acquisition, andto reasonable commercial terms for concessionagreements, to ensure that we can get finance,he says.” We need to prove that, economically,we can stack up the Government’s existing tollrates. We need to fund that debt and to find anequity provider willing to participate.""We will take equity positions in toll roads (inIndonesia), as we would in other markets, butwe share our risk with domestic and internationalinstitutions. We find that, even in some ofthe more difficult jurisdictions, like thePhilippines – or Indonesia – there are still peopleprepared to participate in infrastructure."As one of the few foreign contractors inIndonesia, with a history of almost 30 years, wefeel comfortable in the Indonesian environmentif the Government finds the political will tomake these (infrastructure projects) happen. Webelieve we can find a way with our partners tomake these things work." Even if Indonesiadoes slip from being the largest offshore market(after the Middle East) for Leighton, Charltonsays it will continue to be the second-largestmarket into the foreseeable future.Mining has started to pick up – in a muchPROFESSIONAL SERVICESsmaller way – in the Philippines, says Charlton.The Group is working on a new mine there,and, with the commodity boom and industrialisation,he sees mining markets like Vietnamalso becoming more important.Leighton Asia, which looks after the GreaterChina area, including South Korea, has traditionallyfocussed on Hong Kong and SouthernChina, particularly Macau. It has not made a bigmark on the huge Chinese market. Charltonsays one reason is the presence of large, wellcapitalisedChinese contractors, some biggerthan Leighton itself. "They don't need capital,and certainly don't need people," he says.Chinese authorities, through licensing, makeit difficult for foreigners to participate on theirown in an economical way, Charlton adds. "It iseasier with joint ventures." Leighton partnerswith China State Construction for many projectsin Hong Kong and Macau.Now 55 per cent-owned by the German company,Hochtief, Leighton has opened an officein Beijing to pursue work in the mining sector,and in infrastructure work associated withmines. It sees opportunities in Mongolia andNorthern Inner Mongolia in these sectors.Leighton is also chasing work in Guam,where it is bidding for a port. With Washingtonplanning to move the US military out ofOkinawa to Guam, Charlton says Leightonexpects more work there.Acquisitions have played an important role inthe growth of the Group, and it continues tolook for opportunities to acquire businesses inHong Kong and Indonesia. Not, however, inIndia, where Charlton says companies arefully-priced. "If you look at our revenue today,about 40 per cent is from companies weacquired. We can grow at a certain rate (but) weneed to make acquisitions to achieve a highergrowth rate over time. We continue to see goodopportunities, (but) it is harder to acquire businessesin some countries than in others."❝ If the returns arecommensurate with therisks, we are happy tocontribute equity as partof a winning strategy ❞Acquisitions can be especially difficult wherethese are family-controlled businesses, Charltonsays. "We don't necessarily want full control,but we want equal say – and we don't want tobe controlled by families.”Australia remains a solid base for Leighton,with the ongoing global resources boom andthe shift to PPPs for large infrastructure projects,such as desalination plants and toll roads. Someof these projects are large, like the Sydney M4East toll road extension, estimated to costAUD3-AUD5 billion. This trend will continueinto the foreseeable future.Provided India and China continue to grow,Charlton says Leighton is “pretty optimistic” onthe outlook of the Australian economy."We would like to see active involvement bythe Rudd Government in areas such as industrialrelations and interest rates to ensure that theeconomy continues to perform well," hesays.12 | ASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008

PROFESSIONAL SERVICESFUNDING THE FINANCIAL SHORTFALLThiess Indonesia short-listed for three toll roadsJAKARTA – Thiess Indonesia is currentlyengaged in the tendering process forthree toll road BOOT (build own operatetransfer) schemes in Indonesia — the JakartaOuter Ring Road 2 Package 3 Serpong-Cinere(Jakarta); the Trans-Java Toll Road Ngawi-Kertosono Package (Central Java); and theTrans-Java Toll Road Solo-Mantingan-Ngawi(Central Java). Thiess Indonesia has beenshort-listed for all three.SINGAPORE – With few exceptions,the concept of the public private partnership(PPP) has not yet been adopted widely in Asia,even though the region is familiar with PPP’spredecessors – BOOT (build-own-operatetransfer)and BOT (build-own-transfer).Indonesia and the Philippines are amongthose to use the BOOT or BOT concepts to constructlarge infrastructure projects. But the PPP,or the PFI (private finance initiative) as it isknown in Britain, has not been popular as anoption to finance infrastructure.Now, as the region is forced to meet the challengesof developing and upgrading infrastructureto meet growing demand caused by populationgrowth and rapid urbanisation, it willneed to consider the PPP as another avenue offinancing. Ernst & Young estimates that Asiawill have a financial shortfall of more thanUS$200 billion annually in infrastructure spendingin coming years.Russell Lamb, Director of Ernst & Young’sInfrastructure and Projects Finance/PPP inSingapore, says South Korea, Singapore andMalaysia have started using PPPs. But hebelieves it requires a cultural change, asoccurred in the UK 10 years ago, for governmentsto allow the private sector absolute controlof day-to-day management of infrastructure.For PPPs to flourish, he says, there has tobe a more "genuine partnership”.Lamb told ATI that, for the past decade – andmore-so in the last five years – South Korea hasused its version of PPPs to develop projects. Hebelieves South Korea has a more structuredapproach, and issues a standard document forthese projects.As it becomes a more mature market, Lambfeels the South Korean Government no longerneeds to provide guarantees to private sectorparticipants, as it did in the early days.Between 1997 and 2005, it is believed theOn the Serpong-Cinere project, it is PreferredTenderer and is in the final stages of negotiatingterms for a Concession Agreement in conjunctionwith alliance partner PT WaskitaKarya (which holds a 20 per cent investment).For both the Ngawi-Kertosono and Solo-Mantingan-Ngawi projects, Thiess Indonesia issole tenderer. As such, it is in the evaluationand negotiation process, working towards theGovernment issuing preferred tenderer status.Korea leads on PPPs,S’pore in stop-startSOUTH KOREA leads Asia in the use of the private-public partnership(the PPP), but infrastructure demand could force morecountries to adopt the concept – and this may require a culturalchange allowing for more genuine Government partnerships withthe private sector . . .South Korean Government approved some 118PPP projects, with a capital value of US$38 billion,including roads, rail, water, airports, portsand parking. In the last three years, it isbelieved close to 154 deals had been finalised.Lamb believes that, since 2005, the programmehas extended to cover schools andother social projects. It is understood Seoulplans to have 154 schools builtunder the PPP model, offering25-year concessions.Macquarie Bank has been astrong player in the marketsince it established theMacquarie Korea InfrastructureFund, which now ownsnine infrastructure assets, andhas six under construction –including expressways, bridgesand tunnels. Some of the projectstoday are more complexand larger – for example, the12.3-km Incheon Bridge. Therewas a time when the Koreanswould not contemplate havinga project of this size built usingPPP, Lamb says.The British firm, AMEC Plc,has inked an agreement tofund and start work on theUS$1.45 billion bridge development. It is thefirst foreign investor to lead a major PPP projectin South Korea under a 30-year concession.Singapore's Ministry of Finance originallypublished its PPP outline in 2004, and soonannounced three high-profile PPP projects.These include Sports Hub, billed as the largestsporting infrastructure to be developed by theprivate sector; development of a campus townshipfor the National University of Singapore;and the Institute of Technical Education (ITE)West campus.Ernst & Young’s RussellLamb – a US$200 billionannual funding shortfall.Thiess says all these projects are reliant onthe Indonesian Government completing landacquisition. This requires a number of legislativechanges and there is no certainty as towhen this will be.As well as an investment opportunity, constructionwork will be undertaken by ThiessIndonesia, which is hopeful that work willstart at the end of 2008. Indonesiacurrently has 650 km of toll roads.The Sports Council subsequently asked forre-submission of bids for the Sports Hub, theMinistry of Education withdrew the NUS projectsto go down the traditional procurementroute, and a decision on the ITE West projectwas delayed.At the end of November, Gammon Capital,the Southeast Asian PPP vehicle of Britain'slargest construction conglomerate, BalfourBeatty, was appointed "preferred bidder" forITE West College's new 10-hectare campus, ata cost of S$270 million. The project was the firstPPP of its type for the British Group outside theUnited Kingdom.In January the Singapore Sports Councilchose, as its preferred bidder, the Sports HubConsortium, led by French contractor Dragages– to build the S$1.2 billion Sports Hub. The consortiumwill run and operate the stadium andattendant facilities over 25 years.But there is lingering bad taste over the NUScampus project, which attracted a wide field ofAustralian companies, including MacquarieBank, Babcock and Brown, Transfield Holdingsand the Plenary Group from Melbourne.Australian companies were represented in fourof the five competing consortiums.Ignatius Hwang, a partnerwith the Australian law firm,Freehills, in Singapore, saysthat, before the current cropof projects in Singaporeunder the PPP programme,there were projects whichcould be considered PPPs.These include Singapore’sfirst desalination plant, builtand operated by Hyflux, theUlu Pandan NEWater Plant,built and operated by KeppelSeghers – both projects tenderedout by the SingaporePublic Utilities Board – andthe fifth incinerator plant, tobe built and operated also byKeppel Seghers.Hwang says that, for future projects, there istalk of bringing hospitals and toll roads into thePPP programme, but he thinks these are“a bit of a long way off".■ The export credit agency fundingoption, page 13COPYRIGHT © 2008 All material in ASIA TODAYINTERNATIONAL is copyright. Reproduction in whole or inpart is not permitted without written permission of thepublisher, Asia Today International Pty Limited.ASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008 | 13

In AssociationWith:Adam MaloufHead of Legal & ComplianceARABIAN REAL ESTATEINVESTMENT TRUSTTHE INAUGURALDiego Torres M., Executive Vice-presidentGeneral Manager, BHD VALORESDarine Bejjani, Analyst – Structuring &Arranging Group, BSEC S.A.Iad Georges BoustanyGeneral Manager and Board MemberBSEC S.A.Ibrahim Mardam-BeyBoard Member, BSEC S.A.Klaus Distler, Vice President,JPMORGANJad Haidar, Analyst – Structuring &Arranging Group, BSEC S.A.Rebel Hanna, Director, Asset ManagementGroup, BSEC S.A.Roula SleimanSenior Associate – Capital Markets GroupBSEC S.A.DUBAI CUPof SecuritisationFebruary 27-28, 2008Jumeirah Emirates Towers • Dubai, U.A.E.Over 300 Attendees Expected!Keynote Speaker:FEATURED EXPERT SPEAKERS INCLUDE:Simon StockleyDirector, CATALISStephen de StadlerHead of Business Development-Middle EastFITCH RATINGS LTD.Maan KantarHead of Strucutred Invesment & ProductDevelopment, GICAmr Abou El Seoud, Senior Vice President,INVESTMENT DARRobert C. Bush Jr., Chief Executive OfficerMAJLIS CAPITALJulian A. TuckerPartner- SecuritisationSHEARMAN & STERLING LLPMajid DawoodChief Executive OfficerYASAAR LIMITEDVivek Rao, Chief Executive OfficerMERAAS INVESTMENT GROUPGaurav Aggarwall, Chief Financial OfficerTAMWEEL PJSCMartin Kinsky, Managing Director, MarketsDUBAI FINANCIAL SERVICES AUTHORITY (DFSA)Mohammed Asaria, Head of PrincipalInvestments, RASAMEELHamed Al-Amiri, Vice President, Head ofCapital Markets, RASAMEELFeras Kalthoum, Head of InvestmentsTAMWEEL PJSCNick Eisinger, Emerging MarketsSecuritisation, DEUTSCHE BANKPaul Oliver, Director Financing andTreasury, DUBAI CAPITAL GROUPSandeep Chaudhry, Chief ExecutiveOfficer, EMIRATES NATIONALSECURITIES CORPORATION (ENSEC)Omar Olaf Bolli, Managing Director, Headof Asset Backed Finance, NORD LBOlufemi Oye, Director, DEUTSCHE BANKTRUST & SECURITIES SERVICESMARC WOLF, CEEMEA Securitised ProductsGroup, JPMORGANLead:SPONSORS INCLUDETitanium:Silver:Bronze:For more information about this event, please go to our website at: www.imn.org/esb1022/atm CPE CREDITS AVAILABLE!Te l : 2 1 2/ 7 6 8 - 2 8 0 0 • Fa x : 2 1 2/ 7 6 8 - 2 4 8 4 • Em a i l : m a i l @ i m n . o r g

PROFESSIONAL SERVICESMEETING THE FUNDING CHALLENGEWHERE THE EXPORT CREDIT AGENCY FITSSYDNEY – An additional source offinancing for companies seeking involvement inmajor infrastructure projects offshore, especiallywhere the issue of country risk is involved, isthe national export credit agency. As two examples,Australia’s Export Finance and InsuranceCorporation (EFIC) has taken a position in theLumwana copper mining project in Zambia,and in a major bridge project in Vietnam.EFIC is supporting participation ofBaulderstone Hornibrook in a consortium constructingthe US$104 million Phu My Bridgeacross the Saigon River in Ho Chi Minh City.The project is primarily financed by a loan fromSociete Generale to the Ho Chi Minh CityInvestment Fund for Urban Development.Germany’s export credit agency, Euler Hermes,is providing insurance to Society Generale forthe loan, and EFIC is providing reinsurance toHermes to the value of AUD26 million to supportAustralian content.In Zambia, EFIC is providing substantialpolitical risk insurance to support Australianinvolvement in the development and operationof what will become Africa’s largest open-pitcopper mine. A subsidiary of the Australian andCanadian-listed Equinox Minerals is developingthe US$715 million mine.EFIC has also helped Leighton finance acquisitionof a 45 per cent stake – Leighton investingapproximately AUD870 million – in AlHabtoor Engineering, one of the largest constructioncompanies in the Middle East (seepages 11, 12). The move provides Leighton witha significant increase in capacity to capitaliseon opportunities in the Arabian Gulf.EFIC joined the Abu Dhabi CommercialBank, HSBC, Mashreqbank and Royal Bank ofScotland to provide debt funding for theLeighton acquisition.Peter Swan, a Director in Structured Tradeand Project Finance at EFIC, says there are few❝ Tenderers, suppliersand project sponsors needto look at all possiblefinancing options ❞formalities attached to seeking EFIC support forinfrastructure projects, but there does need tobe a level of Australian content in the project."We assess the characteristics of the transactionand go from there,” Swan told ATI. “Thereare no formal limits on the funding we might beable to guarantee, but if a project requiringexposure of $X million is greater than we wishto accept, we may find ways to transfer part ofthe risk to other parties." Swan says that, giventhe huge requirements for capital expenditurenow involved in infrastructure projects, tenderers,suppliers and project sponsors need to lookat all possible financing options.As reported in ATI in December, EFIC hasprovided a guarantee to allow the Melbournecompany, Environmental Systems and Services(ES&S) to access working capital throughHSBC, permitting it to successfully tender for aHong Kong Government project.Tender documents for the project, a weathersatellite earth station with associated data processingand display systems, did not allow forany upfront or periodic payments during theestimated 18-month construction timeframe.EFIC has also been supporting the Australianroof engineering and construction specialist,Chadwick Group, in a series of projects in Asiaand the Middle East over the past 12 years.Since 1995, Chadwick has secured contractsworth some AUD150 million in six countries. Itsmost recent project, completed in 2007, wasvalued at AUD27 million – to construct the roofingsystem for a new concourse at DubaiInternational Airport. EFIC provided an AUD2.8million guarantee facility. Other Chadwick contractsinclude design, fabrication and installationof a roofing system for SuvarnabhumiAirport in Bangkok, and a titanium roof structurefor Singapore’s Expo railway station.Engineering ingenuity astrength for MeinhardtWHEN Asian markets collapsed,Meinhardt Internationalmoved swiftly to diversify,establishing a strong presencein the Middle East,then adding the US and theUK to its list of offices . . .SINGAPORE – The Asian financialcrisis a decade ago came as both a shock anda watershed for the Australian consulting engineeringfirm, Meinhardt which has a big presencein Singapore. It gave Meinhardt impetusto take on the global market."The lesson we learned was not to rely on asingle market – that we must diversify.Adversity gave us the strength to search foroptions," Shahzad Nasim, MeinhardtInternational's Managing Director, told ATI."As a consequence, we went to Dubai, AbuDhabi, Qatar, Saudi Arabia, Egypt and Libya."Later, Meinhardt added the United Statesand the United Kingdom to its list of offices.Today, the firm employs 3,000 people, and has27 offices in 14 countries.Perhaps one of the firm’s most rewardingmoves was to go to Dubai, which, at the time,was on the cusp of a huge construction boom.Dubai is now one of the world's busiest constructionmarkets – to this day, the boomshows no obvious signs of slackening.Based in Singapore, Nasim felt the Asiandownturn acutely. He points out that Singapore'sconstruction industry went into a seven-yearrecession from 1997.Meinhardt first went to Singapore in 1974,and was therefore no stranger to the ups anddowns of market. But the crisis cast a deeperrecession than previously experienced – theeconomy did not recover until 2004. "Whileeveryone else was shrinking – some halved thesize of their operations in Singapore – we continuedto put on staff because we had startedto do work outside the region," says Nasim.Today, Meinhardt Group has projects with acollective value of US$10 billion in countrieswhich include developed markets such as theUS – where it has carried out projects in thehealthcare sector – and in the UK – in the buildingand aviation sector. Group’s internationaloperations are expected to generate fees ofUS$150 million this year.Nasim says all international offices workclosely with its Australian parent, theSignature Towers in Dubai – MeinhartSingapore is lead consultant.Meinhardt Group, founded in 1955. He says theAustralian operations and the Group are doingwell under the new Chairman, VickiMeinhardt, (daughter of the firm's founder, thelate Bill Meinhardt), and Phil Treyvaud,Meinhardt’s Global Chief Executive. "We areone of the biggest engineering firm (in theworld) with a complete complement of engi-CONTINUED PAGE 17 ➔ASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008 | 15

PROFESSIONAL SERVICES➔ FROM PAGE 15neering disciplines – from structural to buildingservices, facade and infrastructure engineering,”says Nasim. “We are one of a very fewfirms which can offer seamless, integrated servicesin all engineering disciplines."Nasim says the Meinhardt network in Asia isstronger than those of many other internationalfirms, which have presence but lack the scale ofMeinhardt's operations. He points out, as anexample, the firm’s offices in Bangkok andKuala Lumpur, which employ between 200 and100 people each.Meinhardt has undertaken some of Asia’s(and the Gulf’s) most complex and challengingengineering projects. Its key area of specialty isin building design in sectors as diverse as commercialand residential buildings, hospitals,infrastructure and aviation.Nasim takes charge of key projects himself."We are all responsible for our projects," he says.As lead engineer in projects such as theSignature Towers in Dubai, Qipco Tower inQatar, and the newly-completed upmarket residentialproject Sail@Marina Bay, Nasim makeshimself available to clients at all times.It is a principle that trickles down to employees.Staff in the Singapore office working onprojects in the Middle East, for example, workthrough weekends to fit in with the clients'working week (Sunday to Thursday)."Our clients are sometimes surprised that weare available when they want us, because otherforeign firms take their weekends seriously,"Nasim quips. This is one way of differentiatingMeinhardt from other consulting firms. Butmostly, it is an ability to sign up and deliver eyecatchingprojects which has become testimonyto the firm's skills.Meinhardt Singapore is lead consultant fordesign and documentation for SignatureTowers, three high-rise towers (of 72, 67 and 54storeys) in Dubai. Design of the structure defiesthe conventional engineering approach. Thestunning buildings,designed by ZahaHadid, are curved,making it difficult tobuild a conventionalcentral service core.Originally known asDancing Towers, noneof the three towersrises in a straight linefrom the ground.Meinhardt’sShahzad Nasim –learned not to relyon single market.Initial concept designerArup says the firmhas seen "a twistedgeometry trend" emergingin building designlately, but has yet tosee one as complicated as the SignatureTowers, in Dubai's Business Bay – a project ofDubai Properties.Another building, Qipco Tower in Doha,Qatar (architect SIAT Gmbh), has a fabricatedsteel diagrid facade which supports the buildingto provide column-free office space. Theframework of the German-designed building,nick-named "The Tornado" because of its shapeand structural effect, is supported by individuallighting fittings on the junction points of steelgirders – to accentuate the structure and tohighlight the form of the building."The Signature Towers are unconventionalbuildings. They are very difficult to construct,and we have managed to solve the structuralproblems," Nasim says. It is this capability tocome up with solutions to meet unusual, cutting-edgebuilding designs, that has earnedMeinhardt a global reputation for engineeringinnovation and ingenuity, he adds.Other Meinhardt projects in the Gulf areainclude the Dubai Mall, described as the largestcomplex of its type in the world. Meinhardt hasalso completed Phases 2B and 8B of DubaiFestival City, and is working on a mixed usecommercial and residential project, The Pearl,in Qatar.Back in Singapore, where the building industryhas recovered with a vengeance, Meinhardthas nearly completed The Sail – twin 70- and63-storey residential towers. It is also workingENGINEERING DRIVES GROWTHVietnam moving intohigh-profile projectsHANOI – Glen Reinsch says Vietnam isprobably 10 years behind China in terms ofinfrastructure development, but he believes itwill close that gap quickly in coming years.Reinsch, Vietnam Country Manager ofAustralia's leading consulting group, GHD(which opened on office in Hanoi four monthsago), says China is very developed in manyareas when it comes to infrastructure. But hebelieves the gap will be whittled down quicklyas Vietnam opens to foreign investment – anddomestic investment increases followingaccession to the WTO a year ago.Already, some high-profile projects havebeen announced. One is the US$220 millionHalong Star – a 125 hectare development atHalong Bay on Vietnam's Northeast coast – toinclude a 250-room hotel, the first five-starproperty in an area designated as aWorld Heritage site by the UnitedNations.The investor is Limitless, theDubai real estate developer andpart of the Dubai World conglomerate.Dubai World is developer ofthe Palms Islands project in Dubai,in which GHD is involved.The Dubai link is an example ofhow GHD hopes to capitalise on itsworldwide contacts in targettingmajor projects in Vietnam. GHD'soperations in the Gulf, based inDubai, have grown from 30 employeessix years ago to 600. Reinschsays many Australian firms havemoved their manufacturing fromAustralia to Vietnam, or are expanding theirfacilities there."As local and foreign investment comes intoVietnam, we expect the number of projects toincrease," he says. GHD has an ambitious planGHD’s GlenReinsch – Watersector is a coremarket.on one of Singapore’s two new integratedresorts (each with a casino) and the Marina BayFinancial Centre. Nasim says land cost alone forMarina Bay is S$2 billion.While eye-catching buildings have tended todominate Meinhardt’s portfolio of projects,Nasim says the firm has not abandoned projectssuch as bridges, flyovers, transit systems andother infrastructure. Meinhardt is involved withairports in India, Cyprus, the Philippines andthe United Kingdom.Nasim says the rationale in entering the USmarket, initially, was to work with US firmswhich have operations in Asia. "We want tocapitalise on our strong presence in this region,because we are able to offer services toUS firms coming to our region."GHD is looking to acquire a local business in Vietnam to strengthenits presence and help grasp the opportunities available . . .to quadruple its staff there to around 100 asquickly as possible. "As with our strategy inother markets, like Malaysia and elsewhere, weintend to buy a local business to help usexpand,” Reinsch told ATI."We will definitely be looking for businesses toacquire in the next couple of years. Organicgrowth can be a bit too slow. To grasp theopportunities available, we also need to havestrong local knowledge, and that will comefrom acquiring a local business."Still, Reinsch says it is early days for the firmin Vietnam. It has only recently established anarchitectural/structural engineering teamthere. Vietnam’s construction sector, he says,is "hot", but competitive. GHD has won twoprojects involving urban design for local clients.Such projects are potentially attractive to foreigners.As in China, where localdevelopers hire foreign architectsand planners to give their projectsthe "prestige" of foreign design,Vietnamese developers engage foreigninput.Reinsch says urban projects canrange from 100 to 1,000 hectares.GHD has been bidding on somedevelopments, and is looking to providedesign concepts for multistoreybuildings, including five 30-storey buildings in Hanoi.He says that, over the pastdecade, GHD has established aprofile in Vietnam through itsinvolvement in aid-funded projects."There is now a strong opportunityto increase our business in this market."The firm first went to Vietnam to undertakewater projects – an area that remains the coreto its services in Vietnam, where there is aCONTINUED PAGE 18 ➔ASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008 | 17

AVIATION BECOMES KEY MARKET➔ FROM PAGE 17strong emphasis on providing clean water tocities and communities. As a result of leakages,water is not getting to where it should go, andillegal tapping into the water system is also aproblem. Reinsch says local authorities are keento get assistance in managing and upgradingtheir assets. In the next few years, consultingfirms will find plenty of work in non-revenueareas and in the treatment of waste water.GHD is due to complete a six-year project,known as the Three Town Mekong project(funded by AustAID, the Australian foreign aidagency), this year. Most of its current projectsare funded by the Manila-based AsianDevelopment Bank. Recently, it completed afeasibility project, funded by the French overseasdevelopment assistance agency, toupgrade rural infrastructure, including waterand roads. Increasingly, the Sydney-based GHDis promoting sustainability in its work andReinsch says it is his task to push the firm’s sustainabilityskills strongly. But at its present stateof development, he says, Vietnam has other preoccupations.SMEC completesbiodeisel facilityKUALA LUMPUR – SMEC Malaysiahas completed the first commercial biodieselplant in Malaysia. Located on a five hectare sitein Lahad Datu, Sabah, the plant will produce anestimated 100,000 tonnes of biodiesel annually,plus 11,600 tonnes of crude glycerine, a secondaryproduct used mostly in production of soap.Malaysia is the world’s largest producer andexporter of palm oil and 30% of total productioncomes from Sabah. Biodiesel will be used in thetransport sector, but will also be supplied to theindustrial sector to fire boilers in manufacturing,construction machinery and generators.SMEC Malaysia was Owner Engineer of theSPC Biodiesel project, and conducted feasibilitystudies and provided design briefs on allaspects of the plant, including approvals andpermits from local authorities.Solid growth tippedfor Aust. marketCANBERRA – Engineering and commercialconstruction activity by Australia’s privatesector is set to build on its current strongbase to reach a new record high of AUD82 billionin 2008/2009 – more than double the2003/2004 level.An Australian Industry Group (Ai Group) –Australian Constructors Association (ACA)Construction Outlook survey, shows Australia’sleading construction companies forecasting a10.8% increase in the total value of constructionwork in 2007/2008, followed by a lift of 7.4% in2008/2009. This builds on a 12.1% increase in2006/2007. ACA President, Wal King, says: "Thesurvey confirms that engineering and commercialconstruction remains strong, with activityset to build on its current high base. It is alsoclear, however, that supply constraints and risesin construction costs pose a risk to growthprospects, with many firms continuing to faceintense pressure from both scarceresources and tight profit margins.”PROFESSIONAL SERVICESEngineering driver ofBlueScope PEB salesDESIGN and structural skills are driving rapid growth ofBlueScope’s pre-engineered building division in Malaysia,where the aviation and oil and gas sectors are now emerging askey customers in a highly-competitive market . . .KUALA LUMPUR – Backed by ateam of 18 skilled engineers (of a total 34 engineersworking in its Malaysia business),BlueScope Lysaght Malaysia has, over threeyears, driven growth of its pre-engineeredbuilding (PEB) business unit to a point where itaccounts for some 20 per cent of the company’stotal sales.Heon Chee Shyong, President of BlueScopeLysaght Malaysia, says the ability of his engineersto offer cost-effective solutions in preengineeredbuildings, and to cross-sell throughthe company’s other business units, has madethe company a major player in the market.When the PEB business unit was launchedin Shah Alam in 2005, there were many localPEB fabricators, along with two major localplayers and one multi-national already in thePEB market. “We now rank second, and weintend to be industry leader in one or twoyears,” Heon says. “To do that, we will need todouble sales.”Thian Aun Goh, BlueScope Vice President-Building Solutions, says Malaysian propertyowners traditionally have used their own civil orstructural engineers and architects for in-houseconsulting before going to tender for construction.“So the bulk of our work to date has beenwon through traditional tender,” he says.“As our reputation has grown in the localmarket, we have become more pro-active inoffering the client an optimised building solutionand value-engineering. If the client is morecomfortable with his own engineer and architect,our engineers can work through them inthe first instance – or we can go at the front tohelp the client come up with a solution. ThisManaging in Asiacan be more cost-effective, as the engineering/designinput is not done twice.“If you take a typical Malaysian factory, it willbe designed in steel – so we will go to the clientand ask if we can inspect his property and landsize to come up with a pre-engineered buildingdesign – there are often cases where we canpropose alternative solutions.”Thian says that, initially, in Malaysia, therewas an impression that the BlueScope Lysaght❝ Many clients now wantbuildings constructedquickly – in threemonths or less ❞solution could be more expensive. “But therehave been many times where we beat competitorson price – and we offer what our competitorscannot offer, innovation in engineeringdesign,” he says. “We also put major emphasison time commitments and safety measures – todeliver on time and to deliver safely,” he adds.“Safety awareness in the construction industryis improving in Malaysia, and BluescopeLysaght is seen by industry players as theleader in this regard.”Apart from factory building, rebuilding andupgrades, BlueScope Lysaght is finding growthin Malaysia’s aviation sector, where it has justCONTINUED PAGE 19 ➔BlueScope’s Heon Chee Shyong (left) and Thian Aun Goh, pictured with the BerjayaAir project at Subang.18 | ASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008

PROFESSIONAL SERVICES➔ FROM PAGE 18completed design and construction of an aviationhangar for Berjaya Air at Subang, KL’s formerinternational airport. The project is thewidest clear-span pre-engineered steel structure– a 62-metre clear span – done byBlueScope Lysaght Malaysia, and it was completedwithin three months from project awardto handover. The company has also built a newhelicopter terminal at Labuan Airport."We have successfully penetrated the heavyindustries sector too,” says Heon. We have wonPhase One of SGL Carbon Plant, a largeGerman company investing in Malaysia tomanufacture carbon products.” The contract,in Banting Selangor, south of Kuala Lumpur, isdue for completion in March/April.At the new Port Klang Free Zone (PKFZ), thefirm has completed roofing and wall claddingwork for Aker Kvaerner, a Norwegian companymanufacturing for the oil and gas industries.“Firms involved in oil and gas are very big onenvironmental matters, and we are certified inthis area,” Heon says.All manufacturing of pre-engineered buildingsis carried out in Malaysia, partly because ofsteep tariff barriers on imports. Apart from PEB,AVIATION BECOMES KEY MARKETwhich Heon prefers to call his BuildingSolutions Business Unit, Bluescope LysaghtMalaysia has two other business units –Residential Solutions, and Building Products,both involving engineering input.Heon says a positive for pre-engineeredbuildings is that many clients in Malaysia nowwant buildings constructed quickly – in threemonths or less. “We can do this with steel,” hesays. “We recently completed a 7,500 sq mwarehouse at KL International Airport in justnine weeks from the date we wereawarded the contract.Woodhead plugs intoAsian aviation designAUSTRALIAN architectural and design firm WoodheadInternational has seen its work on Singapore’s Changi Terminal3 bring potential new projects in India, Vietnam and Malaysia.It is also working on Abu Dhabi Airport . . .SINGAPORE – After India's largestengineering firm, Larson and Toubro, won thecontract to modernise New Delhi's InternationalAirport, it went to the Australian firm,Woodhead International, for expertise on conceptand design. In January, Larson and Toubroclinched another contract – to modernise busyMumbai Airport – and it is again in discussionswith Woodhead for input.Architectural and design firm Woodhead hasestablished an indelible mark in airport design –more-so since the opening of Singapore's stateof-the-artChangi Terminal 3 in January.Although aviation is a relatively new field forWoodhead, best-known in Australia for buildingdesign, the firm is increasinglystaking its name on internationalairport projects. Managing Principal,Geoffrey Lee, says Woodhead willproduce a concept plan for architecturaldesign of Delhi andMumbai airports for Larson andToubro. "We will oversee documentationof the projects," he says.Through its connection with theIndian firm – which employs40,000 engineers and 1,000 architects– Woodhead is now chasingbids on other projects in India. Leesays there are opportunities incities such as Hyderabad andKolkata. The firm works with otherAustralian firms, such asMeinhardt, on some projects.Despite their scale – the Delhi and Mumbaiairport projects are estimated to cost aroundUS$1.4 billion – Lee says Woodhead will beworking on drawings and inspections, not leadmanagingas it did with Singapore ChangiTerminal 3.Woodhead won a contract to help upgradeSydney Airport in 1997 as the city prepared tohost the 2000 Olympic Games. It was on theback of this work, in joint venture with theGeoffrey Lee -Aviation has becomea flagship sector.Singapore firm, Wilson, that it won the contractto design the interior of Changi Terminal 3.Stuart Truman, who worked on the SydneyAirport upgrade, was drafted to lead theSingapore team in designing the hugeSingapore terminal, which cost S$1.75 billion.While working on Terminal 3, Woodhead wonanother contract from the Civil AviationAuthority of Singapore (CAAS) to upgradeTerminal 1. It was also involved in redesign ofthe retail areas of Terminal 2.Refurbishment and upgrading of Terminal 1,which originally opened in 1983, is expected tobe complete in 2010. The project cost will besignificant, running into many millions of dollars,says Truman, who declinesto be precise in the absence ofan official announcement fromCAAS. Those close to this typeof project told ATI that theupgrade could cost aroundS$500 million. Because of thesize of such projects there,Singapore is now an importantoffshore revenue centre forAustralian professional firms.Singapore has givenWoodhead some of its best projects,including the NationalLibrary, to showcase its skills.Apart from India, Lee saysWoodhead is assessing opportunitiesin airports in Danang,Vietnam, and in Penang andKuala Lumpur in Malaysia. The firm is alsoworking on Abu Dhabi Airport. (CAAS managesAbu Dhabi International Airport and plansto increase its investment in airports, particularlyin its targetted markets in the Middle East,India, China and Russia.)Lee says aviation is a good international sectorto be involved in, because there are largeprojects requiring specialist skills, and clientsare sophisticated and specific in what they arelooking for. "For us, it has become a good flagshipsector," he says.Woodhead now has 360 employees, 75 ofwhom are located in China (the firm’s biggestoffshore presence), and in Singapore, where ithas operated a permanent office since 2006.Lee says China is very important toWoodhead, which established a presence therein 1994, and converted into a wholly-owned foreigninvestment (WOFI) company in 2003. ItsChina practice is active in sectors such ashotels, master planning of urban projects, retailand some aviation work."We bid for airport projects in China, but wefind it difficult to understand the system –which can be haphazard at times and not verytransparent," he says. While it has missed outon some airports in China, Woodhead has notgiven up. It is pursuing other projects, such asPudong Airport. "We would like to focus onlandmark projects, and try to avoid diverting❝ While it has missedout on some airportsin China, Woodhead hasnot given up. It ispursuing other projects,such as Shanghai’sPudong Airport ❞resources into small projects," Lee says.In Australia, however, more mundane projectsprovide the firm with its bread-and-butterworkload. Lee says the firm's strategy is tobuild up strong operations offshore, but he iswary of fall-out from the US sub-prime mortgagecrisis, which has led to a serious globalcredit crunch.One client, Citibank, delayed decisions onthe fit-out of its new offices in Singapore'sfinancial district for about a month, but finallydecided to proceed. The current situationcould stall decision-making with other clientsin coming months, Lee says.While the firm has had a very good first halfin the current financial year, the second halfcould be uncertain. Says Lee: "Our focus is toensure that we work for clients who arefinancially sound."■ New aviation era for India, States toldto push PPPs for local airports; Bransonbidding to enter domestic market,pages 20,21ASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008 | 19

NEW AVIATION ERA FOR INDIAIPO for Air India, newstart-ups set the sceneN.HariharanATI CorrespondentAIR passenger traffic in India is growing by 25 per cent annually,and the Government is scrambling to upgrade aviation facilities– both in the cities and rural areas, with the States told to promoteprivate-public partnerships . . .MUMBAI – India’s Union Government isnow implementing guidelines for the operationof regional air services. New start-upsshould own at least one aircraft and increaseto three over a fixed period – and they mustoperate from one city to interior destinations.They can also operate services to link nonmetrocities and towns. In the South of India,they can operate from three cities – Chennai,Bangalore and Hyderabad.The rush for regional airlines is on. SouthIndia is the most sought-after region, with atleast four small start-ups planning new services.Three airlines are looking to connect underservedcities in the North-East to the easternhub of Kolkata. The Civil Aviation Ministry hasalso received two proposals to connect smaller,fast-growing cities in North India – especiallyin Punjab – to Delhi.The Bird group, a Delhi-based travel and ITfirm, may be among the first to take off in NorthIndia under the new policy. At least six otherstart-ups, including Premier Airways’ brandEasy Air, Dravida in the South, Mega Airlinesfrom the North-East, and North Star in theWest, are planning to apply for licences. “Thenew airlines will operate smaller aircraft, areeasy to fill up, easier to park and virtually payno landing fees,” says Madhav Oza, airline ticketconsolidator of Blue Star Travels in Mumbai.India’s Civil Aviation Ministry wants to makeregional connectivity a policy objective. Startupairlines which are ready to operate link-upservices to connect smaller towns will get priorityin licensing in a strategy to help avoid furtherpressure on overcrowded airports like Delhiand Mumbai.A dozen airlines are awaiting clearance to tapinto the booming domestic market. These willnow be told to go for regional operations.As an incentive to those who opt for regionalservices, the Government has promised to providecheaper aviation fuel and lower airport❝ One study says amajor chunk of domestictraffic originates from thecities – leaving littleconnectivity for interiordestinations❞charges. The Ministry feels that smaller townswould get good connectivity if the airlines operatesmaller aircraft. For non-trunk routes, 30-seaters and 50-seaters would be ideal.Kapil Kaul, CEO, Indian Sub-continent andMiddle East, at the Centre for Asia PacificPROFESSIONAL SERVICESAviation, says further incentives would boostair connectivity in other than metro areas –“and that is what is required”. At present, fewairlines connect Tier-II cities like Chandigarh,Dehradun and Patna.Even in these cases, frequency of operationsis considered inadequate. According to onestudy, a major chunk of domestic traffic originatesfrom the cities, leaving little connectivityfor interior destinations – an imbalance whichneeds to be reduced.A comprehensive civil aviation policy hasbeen referred to a group of Ministers headed byExternal Affairs Minister, Pranab Mukherjee.Titled Vision 2020, the policy draft seeks toenhance the foreign direct investment level insome areas, such as cargo operations, charteredflights and ground handling. Differences persistamong airlines and in political circles over somekey proposals of the draft policy.A proposal by Civil Aviation Minister, PrafulPatel, that the experience period rule imposedon domestic carriers to qualify for internationaloperation – first five years, then reduced tothree years – should be scrapped, and that airlinesshould get the green signal purely on thebasis of fleet size, financial capability, managementexpertise, human resources, and technicalcompetence, is gaining acceptance. Whilenew start-ups welcome removal of the entrybarrier, established operators want weightagefor their long wait. The Prime Minister mayintervene to sort out the differences.India seeks rightsin Europe, GulfMUMBAI – India’s Minister for CivilAviation, Praful Patel, is planning talks withGulf countries to seek flying rights for multipleIndian carriers, including Jet Airways and AirDeccan. Saudi Arabia to date has been insistingon a ‘one nation, one carrier’ principle whilenegotiating bilateral rights.Patel also plans talks in Brussels to seek anIndia-European Union horizontal air serviceagreement, which would treat the EU as oneentity, and enable India to negotiate seatarrangements, designation of airlines and otherissues for all 24 countries party to theagreement.STATES TOLD TO PUSH PPPs FOR LOCAL AIRPORTSMUMBAI – The Indian aviation scenariois turning multi-faceted, with majorplans launched by the Minister for CivilAviation, Praful Patel. Sea-planes will soonenter the airspace to link small islands locatedoff the east and west coasts."If a small country like the Maldives canhave 25 or 30 sea-planes connecting smallislands, why can't they operate in India,which has a vast sea coast," the Ministersaid when announcing India Aviation 2008,the first civil aviation show planned for India(to open in Hyderabad on October 15).The Minister convened a meeting inJanuary with State governments to explainopportunities in the aviation sector – and toask them to promote public-private partnershipsfor the development of airports.With the merger of the former Indian Airlineswith Air India to form a new National Aviationcompany, the Government will soon go to aninitial public offering (IPO) to divest a 10-15 percent stake of its shareholding in Air India. TheGovernment has been keen to list Air India toraise resources for expansion of services.The IPO, a part of which will be offered forsubscription by employees, will help raisefunds for the purchase of 111 aircraft by AirIndia, which plans to buy 68 Boeing aircraft ata cost of Rs350,000 million, and 43 Airbus aircraftcosting around Rs98,000 million.The Government plans to revive 350 airstripswhich are not generally operational now –there is occasional use of 80 of them. Patelsays the objective is to provide connectivityto semi-urban areas, and to help corporationswanting to develop a supply chain for theirretail operations. The Minister has urgedState governments to lift sales tax on aviationfuel, which accounts for 35 to 40 per cent ofthe operational cost of airlines. He will ask theFinance Minister to reduce the customs andexcise duties on aviation fuel in the comingBudget, to be presented to Parliament inFebruary. The Government is planning toinvest Rs410,000 million for modernisationand expansion of 35 non-metro airports,to be completed by the end of 2010.20 | ASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008

Print Post Approved PP2658954598544565THIS MONTHS ISSUSEAUST $6.50 NZ $7.10 INCL GSTPROFESSIONAL SERVICESMore airlines forsouthern skies,cargo a priorityMUMBAI – Three new airlines – AirDravada and Star Aviation (both based inChennai) and Emric Air (based in Koehi) – areset to fly over the southern skies of India to tapstrong demand growth in Chennai, Hyderabadand Bangalore, also Thiruvananthapuram,Kochi, and Visakapatnam.A senior Civil Aviation Ministry official saysthe Government will accept proposals from thethree airlines, each of which is to acquire threeaircraft in the first year of operation – and to beoperating five aircraft at the end of two years.The Government is expanding airport infrastructureat Coimbatore in South India, and hasapproved new direct flights from Coimbatore toforeign destinations, via Singapore.Jet Airways is already operating to Sharjahfrom Coimbatore – in total, 23 flights now operatedaily from Coimbatore, and this willincrease to 32 shortly. Coimbatore is developingquickly as a Tier-II city. It has a large number ofeducational institutions (including links withthe University of South Australia). The StateGovernment of Tamil Nadu wants an IndianInstitute of Management (IIM) to be located inCoimbatore, and a new Indian Institute ofTechnology (IIT) has been mooted for Madurai,another Tier-II city.The Government is also backing proposals bysome private players to set up cargo airportsnear existing airports by relaxing the current150 km minimum distance required betweenairports. A three-member committee, comprisingthe Finance Minister, P. Chidambaram, theMinister for Civil Aviation, Praful Patel, and thePlanning Commissioner, Montek SinghAhluvalia, has submitted a report on guidelinesfor new airports.Greenfield cargo airports will be a third categoryof airport for India, which currently hasonly two categories – civil and defence.Exclusive cargo handling airports will facilitatefaster transport of goods for industry.The Airports Authority of India does providecargo facilities at some ports – includingNagpur, Lucknow and Coimbatore – but theseare not adequate.Branson biddingto enter marketas domestic airlineMUMBAI – Having watched growth in airtraffic in India, Richard Branson, who heads theUK carrier, Virgin Atlantic Airways, has nowsought Government permission to start adomestic airline here.Branson is hopeful that current rules will bechanged to enable foreigners to run local services.Indian air passenger traffic is growing by 25per cent annually, with higher incomes encouragingmore people to opt for air travel ratherthan the more traditional train journeys.Already, six discount carriers have startedflights. India’s population is 1.1 billion, and therate of air travel growth may outpace the globalaverage by 2025. Officials say India’s foreigndirect investment policy, which limits FDI to 49per cent in aviation, is likely to be revised.Branson's airline operates domestic servicesin Australia (Virgin Blue); in the US (VirginAmerica); and in Africa (Virgin Nigeria).Kingfisher Air infirst order for A380MUMBAI – Kingfisher Airlines, owned byIndia’s brewing and spirits giant, UB Group, hasbecome the first Indian airline to order the newAirbus 380. The initial order is for five aircraft, tobe delivered in early 2001, and Kingfisher mayorder five more. But India will need to updateairport facilities to handle the A-380.Mohan Murti, former Director (Europe) of theConfederation of Indian Industry, says India’sairports can barely cope with growing demandin a booming economy. New destinations out ofIndia include New York, Toronto and Brussels.Are theytellingporky’s?If you advertise in specialty publications there’s only one thing you need to check.Whether or not their circulation figures have been audited by CAB. If they have,you’ve got nothing to worry about, their figures are true and correct. If theyhaven’t, well maybe you’ve got a little to worry about. To find out more contactthe Circulations Audit Board on 02 9954 9801 or visit www.auditbureau.org.auCirculations Audit BoardNEW AVIATION ERA FOR INDIAADB backing PPPsfor infrastructureMUMBAI – Private-public participation(PPP) is being recommended by the AsianDevelopment Bank for India’s future development,as a key strategy to reduce povertythrough infrastructure-led growth. The ADB isfinalising its country partnership strategy withIndia for the 2008-2012 period, and is in closeconsultation with the Central Government,especially in relation to PPP projects.ADB President Haruhiko Kuroda told PrimeMinister Manmohan Singh the Bank sees scopefor a continued increase in its financial assistanceto India in coming years. Speaking toreporters after the meeting, he said: “We expectour total lending level in 2008 to reach US$2.7billion. The Planning Commission has estimatedthat India needs US$492 billion in the 11thPlan (2007-2012) to fund infrastructuredevelopment.ATI MAGAZINE has been an audited member of the CAB since 1984.Average circulation for the six months to September 2007 was 9,065 copies.ASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008 | 21

LINKING THE GREATER MEKONGPROFESSIONAL SERVICESFrom tanks and troopsto trade and tourismAndrew SymonATI CorrespondentNEW highways and railwayswill open up vast areas ofVietnam, Laos, Cambodia,Thailand, Myanmar andparts of China. A new highwayfrom Hanoi to Kunming,capital of China’s Yunnanprovince, is being supportedby the ADB . . .BANGKOK – Commerce betweennorthern Vietnam and southern China shouldbe promoted by a new highway between Hanoiand Kunming, the capital of Yunnan province.The Vietnamese side of the project, a fourlane,244-km link from Hanoi to the border townof Lao Cai to the northwest, is to be completedby 2012, and is being supported by a US$1.1 billionloan from the Manila-based AsianDevelopment Bank (ADB).The facility, approved in mid-December, isthe largest single loan in the ADB’s history. TheVietnamese segment will link with a highwayunder construction on the Chinese side of theborder at Lao Cai.The Hanoi-Kunming highway is one of anarray of projects which are fashioning moderntransport corridors north and south, and eastand west, through the Mekong region. Thesepromise to greatly boost trade and investmentalong their course.But with the development also comes concernabout possible impact on the environmentthrough fragmentation of important naturalareas – and a dramatic increase in traffic flows❝ In Vietnam, a newhigh-speed US$33 billionNorth-South railway isbeing put forward.Japan would likely be amajor sponsor ❞and exhaust emissions. Another fear is that thebetter links with southern China may economicallyoverwhelm smaller southern communities,through a flood of cheap Chinese goods andmigrant labour. Politically, the stronger transportlinks between southern China and theMekong states will further strengthen Beijing’sinfluence over the region.Under the Greater Mekong Subregion (GMS)Economic Co-operation Programme, promotedby the ADB and supported by other multilateralagency and bilateral development assistancefinancing, the governments of Vietnam, Laos,Cambodia, Thailand, Myanmar and China(considered part of the region through itssouthern provinces of Yunnan and the GuangxiZhuang Autonomous region), are workingtogether to build new highways and, to a lesserextent, railways, to better integrate theireconomies and so accelerate economic growthand development. The geographical focus oftransport integration includes an East WestCorridor (EWC), a North-South Corridor (NSC),and a Southern Corridor (SC).The EWC is a direct and continuous 1,450-km highway between the IndianOcean/Andaman Sea coast of Myanmar to theSouth China Sea coast around Vietnam’s Hueand Danang central region. The transport corridorhas been completed except for a 40-kmsection in Myanmar.The NSC features three different highwayroutes along the north-south axis of the corridor:Kunming (in Yunnan)-Chiang Rai (in northwestThailand)-Bangkok via Laos or Myanmar;Kunming-Hanoi-Haiphong; and Nanning(Guangxi Zhuang)-Hanoi. Various sections arecomplete, under way or still to begin. The projectis to be completed by 2010.The SC consists of three main road links connectingsouthern Thailand from Bangkok,southern and central Cambodia and southernVietnam. Segments of the project are similarlyat different stages of development, with completiontargetted for 2010.Railways are included in the transportscheme, although highways and bridges are itsmain thrust. The railway line between Hanoiand Kunming, China, is being improved, supportedby ADB finance; and a US$350 million150-km railway link is planned betweenVietnam and Laos from Vietnam’s Quang BinhProvince to Thakhet District, in Lao'sKhammouan Province (with Vietnam meetingthe cost of the preliminary work).The inter-country links are being complementedby improvements to domestic road andrail systems. Cambodia’s old and run-down railsystem is to be modernised through ADB andother development assistance loans. The projectis rehabilitating almost 600 km of track,associated bridges and other structures, andwill rebuild a 48-km link with Thailand,destroyed during the Khmer Rouge period. Therail link between the port of Sihanoukville andPhnom Penh is also being improved.Longer-term, a new railway between PhnomPenh and Ho Chi Minh City in Vietnam is onthe agenda. In Vietnam, a new high-speedTNT Road Network – Singapore toHanoi and on into China.TNT Road Networkextends to ChinaSHANGHAI – TNT Express is set tobecome the first integrator in Asia to operatea road network linking more than 120cities in Singapore, Malaysia, Thailand,Indo-China and China, across 4,000 km.TNT’s Asia Road Network, which connectsSingapore to Nanning, the capital cityof China’s Guangxi Zhuang AutonomousRegion, and Guangzhou, the capital ofGuangdong Province, is expected to be fullyoperational in the first quarter of 2008, followingcompletion of final trials. It connectsto TNT’s international express network inChina – linking it to TNT’s Chinese domesticnetwork will be the next step.Marie-Christine Lombard, ManagingDirector of TNT Express, describes the additionof China to the Road Network as anothermilestone in TNT’s strategy to build andintegrate networks within and betweenselected emerging markets. “The RoadNetwork will strengthen our capabilities tosupport growing intra-regional trade flows,”she says.The Network connects Singapore,Malaysia, Thailand and China through thenorth-eastern border of Vietnam, with realtime24x7 GPS tracking of TNT’s containertrucks. TNT says the road service is two tothree times faster than sea freight, and up to30 per cent cheaper than air freight.US$33 billion North-South railway is being putforward by the State-owned Vietnam RailwayCorporation. Japan would likely be a majorsponsor. Vietnam also wants to build 6,000-kmdomestic expressway between now and 2020.This would include two North-South routes.The commercial benefits of the new intercountrytransport links are illustrated by theHanoi-Kunming highway project. The currentjourney for trucks that now ply the route will bereduced to nine hours. Goods from Yunnan willbe able to be exported through the ports ofHaiphong and Cai Lan, near Hanoi, which willbecome much closer time-wise than the currentChinese outlet port, while Vietnamese pro-CONTINUED PAGE 23 ➔22 | ASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008

PROFESSIONAL SERVICES➔ FROM PAGE 22ducers will have better access to Chinese markets.The highway from Hanoi to Lao Cai willoperate as a toll road, with the ADB projectingthat it will generate sufficient revenue to recoverthe entire loan within the first 10 years.The ADB’s Vietnam Country Director,Anyumi Konishi, says both countries are reapingthe fruit of peace and co-operation.Referring to the brief but bloody war Vietnamand China fought around the Lao Cai area inearly 1979, Konishi says: “In one generation,they have moved from tanks and troops totrade and tourism."The existing Hanoi-to-Kunming road is anarrow and congested artery that windsthrough towns and over many small bridgesalong the Red River. The new highway should,the ADB believes, allow more rapid and safertransport – and be a catalyst for the establishmentof industrial parks along its route, attractingdomestic and international companies.Traffic on the route is forecast to rise fromabout three million vehicles a year now to 5.5million in 2012 and to 17 million in 2022. Thehighway traverses four northern Vietnameseprovinces – Vinh Phuc, Phu Tho, Yen Bai andLao Cai – which have poverty rates as high as34 per cent, against a national average of 20 percent. The economic stimulus from the highwayis expected to cut these poverty rates significantly.But it will come at some social cost.Although an environmental impact study bythe ADB found no threat to any significant naturalsites, the road will require the demolition ofabout 1,900 homes and force resettlement ofsome 25,000 people. The ADB and theVietnamese Government say they have drawnup a relocation strategy aimed at minimisingthe risks of splitting communities, and ensuringthat individuals who relocate are notworse off.Kyrgyzstan to joinregional corridorsof Central AsiaBISHKEK – Beginning this year throughto 2018, 11 major projects totalling almostUS$1.6 billion will be implemented inKyrgyzstan as part of a strategy of transportsector development and assistance to trade,developed by the Central Asia RegionalEconomic Co-operation (CAREC) Programme.Kyrgyzstan's Ministry of Economic Developmentand Trade says five of the projects concernmotor roads, and six concern railroads andair communications.CAREC offers member countries a joint integratedapproach to develop transport corridors.During the next 10 years in Kyrgyzstan,Mongolia, China, Afghanistan, Azerbaijan,Kazakhstan, Tajikistan and Uzbekistan it plansto implement more than 80 investment projects,worth US$20 billion. They will receivetechnical assistance worth US$50 million.■ Professional Services ContactDirectory, pages 24-28COPYRIGHT © 2008 All material in ASIA TODAYINTERNATIONAL is copyright. Reproduction in whole or inpart is not permitted without written permission of thepublisher, Asia Today International Pty Limited.SEOUL – Incoming Korean President, LeeMyung Bak, is wasting no time in living up tohis nickname – “The Bulldozer” – by gettinghis proposed US$15 billion Seoul-Busan (orNakdong-Han) canal project off the ground.Lee, a former CEO of Hyundai Engineering& Construction, built the centerpiece US$400million Cheonggyecheon canal through Seoulwhen he was Mayor of the city (2002-2006).Awaiting his February 25 Presidential inauguration,Lee had his transition team’s pointof-contactfor the canal project, Jang Seok-hyo(who was Director of the CheongyecheonRestoration), meet with the CEOs of DaewooEngineering & Construction, SamsungCorporation, Hyundai Engineering &Construction, GS Engineering & Construction,and Daelim Industrial Company. Following aseries of public meetings this month, Leeanticipates launching the project by February2009 – and completing it by 2011, before hefinishes his five-year (non-renewable) term.During the election, Lee promised to build acanal linking the 20-km mountainous stretchbetween Chungju and Mungyeong – separatingthe southern reaches of the Han Riverfrom the Upper Nakdong River. This wouldenable barges to travel the 2,100-km distancefrom Seoul to Busan, South Korea’s secondlargestcity and largest port.The idea is to create an inland shippingchannel through central Korea that wouldstimulate the interior’s economy, just as thepicturesque Cheongyecheon has done forSeoul. Also, as each barge can carry as muchas 170 trucks, it should relieve traffic congestion.Lee says logistical costs will be reduced,and 700,000 jobs created in the process.INLAND WATERWAY FOR KOREAFast track for Seoul-Busan canal projectPeter SylvestreATI CorrespondentHow the new terminal will look.Proposed canal route – likely cost isUS$50 billion.However, there is opposition. Critics saythe project is likely to cost US$50 billion, andthat migrants will comprise much of the workforce.In a poll by the Seoul Economic Daily,more than 71 per cent voiced concern. Otherpolls put opposition at around 40 per cent.Some Korea-watchers are sceptical as to itspracticality. Apparently, the 20-km mountainousobstacle is the least of the project’s difficulties.The blog, Gusts of Popular Feeling(http://populargusts.blogspot.com/2005/10/lee-myung-baks-canal-plan.html), notes thatthe proposed route probably includes manydams that will have to be altered.Environmentalists are also up in arms, asthe canal is said to slice through pristine naturalland. Expect the public hearings slated forFebruary to add to global warming.TENDERS OPEN FOR HK CRUISE TERMINALHONG KONG – The Hong KongGovernment has issued an open tender fordevelopment of a new, world-class, cruise ter-minal adjacent to the former Kai TakInternational Airport. The tender is to design,build, operate, manage and maintain the newcruise terminal for 50 years, and to begin operatingthe first berth in February 2012. TheGovernment wants Hong Kong to become aleading regional cruise hub.A Tourism Commission spokesman said thenew cruise terminal would be located at thesouthern end of the former Kai Tak airport runway,in the heart of Victoria Harbour.Tenderers are expected to fulfill a minimumrequirement of three years’ immediate experiencein operating a cruise terminal, which hasa minimum annual throughput of 200,000embarking and disembarking homeportpassengers.ASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008 | 23

PROFESSIONAL SERVICES CONTACT DIRECTORY 2008SMEC wins majorcontracts in Dohaand AfghanistanDOHA – Australia’s Snowy MountainsEngineering Corporation (SMEC), is supervisingsub-division development of one of themost prestigious areas of Doha, the capital ofQatar. The project, in Doha’s West Bay area,involves construction of 12.5 km of roads inthe new diplomatic area known as Zone 66 –the future site of 32 embassies – and an adjacentcoastal area known as Zone 61.Infrastructure development – which isunder two separate civil works contracts –includes road works, water supply, surfacewater drainage and sewerage, electric powerworks, telecommunications, landscaping andreticulation works, and construction of a largeunderground pumping station.The underground works and trenchingrequire continuous de-watering because thesite is founded on porous limestone and is onlya few metres above sea level. The Zone 61Contract was completed last year, and theZone 66 contract will be completed shortly.SMEC is also providing post-contract constructionsupervision services to Qatar’sPublic Works Authority, which is overseeingdevelopment of the district. SMEC’s servicesinclude general contract administration, sitesupervision, quality assurance and post-contractquantity surveying.In Afghanistan, more than 30 SMEC staffare undertaking five projects in the highways,transport, water, environment and power sectors.Rehabilitation and expansion ofAfghanistan’s urban electricity distribution❝ In Afghanistan, morethan 30 SMEC staff areundertaking five projectsin the highways, transport,water, environmentand power sectors ❞network is one of the biggest infrastructureprojects currently under way. SMEC has beenengaged as project manager by Afghanistan’sMinistry of Energy and Water.The project, which initially included Kabuland 10 other urban areas, has been extendedto cover an additional six urban areas. Theimproved electricity services will supply morethan five million people. The extended scopeof works also includes contract preparation forrehabilitation and expansion of electricityservices in the city of Mazar-e-Sharif.In Kabul, SMEC has won an UrbanReconstruction Project to improve services inchronically depressed neighbourhoods, and toimprove the service delivery capabilities ofboth the Kabul Municipality and the Ministryof Urban Development. SMEC has implementeda number of projects in Afghanistan since2002, mostly providing development andreconstruction consultancy services, fundedthrough the World Bank and the AsianDevelopment Bank.FOLLOWING is a listing of ATI subscriber firmsoffering services into Asia. It is not a completelisting, and others subscribers may wish toforward entries for future publication.ACCOUNTING SERVICESKPMGwww.kpmg.comAUSTRALIA — 10 Shelley Street, Sydney NSW 2000,tel (61 2) 9335-7000, fax (61 2) 9299-7077. Contact —Michael Andrew, Chairman, KPMG Australia; GraemeBailey, Chief Operating Officer, Asia Pacific.BANGLADESH — 9 Mohakhali Commercial Area,11th Floor, Dhaka 1212, tel (880 2) 9886-450-2, fax (8802) 988-6449.BRUNEI DARUSSALAM — Unit 401-403A, 4th FloorWisma Jaya, Jalan Pemancha, Bandar Seri BegawanBS 8811, tel (673 2) 228-382, fax (673 2) 228-389.Contact — Peter FY Chay, Partner (Singapore).CAMBODIA — No.2 Street 208, Sangkat BoeungProlit, Khan 7 Makara, Phnom Penh, tel (855 23) 216-899, fax (855 23) 216-405.CHINA — 8th Floor, Office Tower E2, Oriental Plaza,1 East Chang An Avenue, Beijing 100738, tel (86 10)8508-5000, fax (86 10) 8518-5111. Contact — FrancisSiu, Partner.HONG KONG — 8th Floor Prince's Building, 10Chater Road, Central, Hong Kong tel (852) 2522-6022,fax (852) 2845-2588. Contact — John Harrison,Chairman.INDIA — KPMG House, Kamala Mills Compound, 448Senapati Bapat Marg Lower Parel, Mumbai 400013, tel(91 22) 398-9600, fax (91 22) 398-3600. Contact —Russell Parera, Chief Executive Officer.INDONESIA — 35th Floor WISMA GKBI, 28, Jl.Jenderal Sudirman, Jakarta 10210, tel (62 21) 574-0877, fax (62 21) 574-0313. Contact — TohanaWidjaja, Managing Partner.JAPAN — (KPMG AZSA & Co.) Azusa CentreBuilding, 1-2 Tsukudo-cho, Shinjuku-ku, Toyko 162-8551, tel (81 3) 3266-7543, fax (81 3) 3266-7643.Contact — Masanori Sato, Partner.KOREA — (Samjong KPMG Inc.) 10th Floor, StarTower, 737 Yeoksam-dong, Gangnam-gu, Seoul 135-984, tel (82 2) 2112-0001, fax (82 2) 2112-0002.LAOS — 4th Floor, KP Tower, 37 Thatluang Road,Ban Phonxay, Saysettha District, Vientiane, tel (856 21)900-344, fax (856 21) 900-347.MACAU — 23rd Floor, D, Bank of China Building,Avenida Doutor Mario Soares, Macau, tel (853) 2878-1092, fax (853) 2878-1096. Contact — Johnny Ng.MALAYSIA (KPMG Desa Megat & Co.) — WismaKPMG Jalan Dungun, Damansara Heights, 50490Kuala Lumpur, tel (60 3) 2095-3388, fax (60 3) 2095-0971.PAKISTAN (Taseer Hadi Khalid & Co.) — 1stFloor, Sheikh Sultan Trust Building No. 2, BeaumontRoad, Karachi 75330, tel (92 21) 568-5847, fax (92 21)568-5095.PHILIPPINES — 22/F Philamlife Tower, 8767 Paseode Roxas, Makati City 1226, Metro Manila, tel (63 2)885-7000, fax (63 2) 894-1985. Contact — Roberto GManabat, Chairman & Chief Executive Officer;Emmanuel P Bonoan, Chief Operating Officer.SINGAPORE — 16 Raffles Quay #22-00, Hong LeongBuilding, Singapore 048581, tel (65) 6213-3388, fax (65)6225-0984. Contact — Danny Teoh, ManagingPartner.SRI LANKA — 32A Sir Mohamed Macan, MarkarMawatha, Colombo 3, tel (94 11) 2426-426, fax (94 11)2445-872. Contact — Rajan N Asirwatham, SeniorPartner.TAIWAN — 6th Floor, No. 156, Min Sheng East Road,Sec 3, Taipei 105, tel (886 2) 2715-9999, fax (886 2)2715-9888.THAILAND — 48th Floor, Empire Tower, 195 SouthSathorn Road, Bangkok 10120, tel (66 2) 677-2000, fax(66 2) 677-2222. Contact — Kaisri Nuengsigkapian,Chief Executive Officer.VIETNAM — 10th Floor, Sun Wah Tower, 115 NguyenHue, District 1, Ho Chi Minh City, tel (84 8) 821-9266,fax (84 8) 821-9267. Contact — Warrick Cleine,Managing Partner.Price Waterhouse Cooperswww.pwc.global.comAUSTRALIA — Freshwater Place, 2 SouthbankBlvd, Southbank, Melbourne, tel (61 3) 8603-1000, fax (61 3) 8603-1999. Contact — PeterCollins, email peter.collins@au.pwc.com Also inSydney, Brisbane, Perth and Adelaide.CAMBODIA — 124 Norodom Boulevard, SangkatTonle Bassac, Khan Chamcar Mon, PhnomPenh, tel (855) 2321-8086, fax (855) 2321-1594.CHINA — Level 26, Office Tower A, BeijingFortune Plaza, 7 Dongsanhuan Zhong Road,Chao Yang District, Beijing 100020, tel (86 10)6533-8888, fax (86 10) 6533-8800. Contact —Edward Shum, email edward.shum@cn.pwc.comAlso in Dubai, Guangzhou, Shanghai, Shenzhenand Tianjin.HONG KONG — 21/F, Edinburgh Tower, TheLandmark, 15 Queens Road, Central, tel (852)2289- 8888, fax (852) 2810-9888. Contact — RodHuong- Lee, email rod.huong-lee@hk.pwc.comINDIA — Suite 9, 3rd Floor, 20-A Park Street,Calcutta 700016, tel (91 33) 2249-4680, fax (91 33)2249-0759. Contact — Rathin Datta, emailrathin.datta@in.pwc.com Also in Bangalore,Bhubaneswar, Chennai, Hyderabad, Mumbai,New Delhi, and Pune.INDONESIA — PT Prima Wahana Caraka, JI.H.R. Rasuna Said Kav. X-7 No.6, Jakarta 12940,tel (62) 21 521-2901. Contact — Haryanto Sahari,email haryanto.sahari@id.pwc.comJAPAN — Kasumigaseki Building 15th Floor, 2-5 Kasumigaseki 3-chome, Chiyoda-ku, Tokyo100-6015, tel (81 3) 251-2400. Contact — HiroshiUeno, email hiroshi.ueno@jp.pwc.com Also inFukui, Fukuoka, Gifu, Hamamatsu, Hiroshima,Kagoshima, Kanazawa, Kohe, Kumamoto,Kyoto, Maebashi, Matsumoto, Matsuyana,Nagano, Nagoya, Naha, Niigatu, Oita, Okayania,Osaka, Sapporo, Sendai, Tokyo, Ube,Utsunomiya, Tamagata and Yokohama.KOREA — Kukje Center Building, 21st Floor, 191Hangangro 2ga, Yongsanku, Seoul 140-702, tel(82 2) 709-0800. Contact — Ando Yun, emailando.yun@kr.pwc.com Also in Kwangju, Pusanand Taegu.MALAYSIA — Wisma Sime Darby, 11th Floor,Jalan Raja Laut 50350 Kuala Lumpur, tel (60 3)2693-1077, fax (60 3) 2693-0997. Contact — KhooChuan Keat, email chuan.keat.khoo@my.pwc.comAlso in Ipoh, Johor Bahru, Kota Kinabalu,Kuantan, Kuching, Labuan, Melaka and PulauPinang.PHILIPPINES — 29th Floor Philamlife Tower,8767 Paseo de Roxas, Makati City, tel (63 2) 845-2728, fax (63 2) 845-2806. Contact — MyrnaFernando, email myrna.fernando@ph.pwc.comSINGAPORE — 8 Cross Street, 17-00, PwCBuilding, Singapore 048424, tel (65) 6236-3388,fax (65) 6236- 3300. Contact — Michael C S Lim,email seow.chiang. lim@sg.pwc.comTAIWAN — 23rd Floor, International TradeBuilding, 333 Keelung Road, Section 1, Taipei110, tel (886 2) 2729- 6666. Contact —Springfield T T Lai, emailspringfield.lai@tw.pwc.com Also in Chungli,Hsinchu, Kaohsiung, Taichung and Tainan.THAILAND — 15th Floor, Bangkok City Tower,179/74- 80 South Sathorn Road, Bangkok 10120,tel (66 2) 344-1000/286-9999. Contact — SukontKanjanahuttakit, email sukont.kanjanahuttakit@th.pwc.comVIETNAM — Saigon Tower, 4th Floor, 29 LeDuan Boulevard, District 1, Ho Chi Minh City, tel(84 8) 823-0796, fax (84 8) 825-1947. Contact —Richard Irwin, email r.j.irwin@vn.pwc.com Also inHaiphong and Hanoi.24 | ASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008

CONTACT DIRECTORY 2008PROFESSIONAL SERVICESWilliam Buck Chartered Accountantswww.williambuck.com.auAUSTRALIA — Level 2, 215 Spring Street,Melbourne, tel (61 3) 8663-6000, fax (61 3) 8663-6333. Contact — Ian Lee, emailinfo@williambuckvic.com.au Also in Sydney,Brisbane, Adelaide and Perth.CAMBODIA — Phnom Penh. Contact — KualaLumpur office of GEP Associates in Malaysia.CHINA (AGN China Regal CPAs) — Room 402,North Tower, Xin Mao Building, No.15 FinanceStreet, Xicheng District, Beijing 100032, tel (8610) 6655-3366, fax (86 10) 6655-3380. Contact —He Peigang, email infocrc@126.com Also inShanghai, Tianjin, Chongqing, Nanjing, Chengdu,Jinan, Kunming and Hangzhou.HONG KONG (Chu & Chu CPAs) — Suite 1801-5,18/F, Tower 2, China Hong Kong City, 33 CantonRoad, Tsim Sha Tsui, tel (852) 2815-1133, fax(852) 2541-2170. Contact — Albert Wong, emailchuchu@chuchu.com.hkINDIA (L. B. Jha & Co.) — DG-1 & EG-3,Gillander House, 8 Netaji Subhas Road, Calcutta700 001, tel (91 33) 2242-4277, fax (91 33) 2242-0650. Contact — D. Chatterji, emaillbjcal@cal.vsnl.net.in Also in Bombay and NewDelhi.INDONESIA (Kanto, Tony, Frans & Darmawan)— Menara Kadin, 27th Floor, Jl. HR. RasunaSaid, Blok X-5 Kav. 2-3, Jakarta, tel (62 21) 527-4657, fax (62 21) 527-4717. Contact — Jim S.Darmawan, email auditor@darmawan.com Alsoin Malang and Surabya.JAPAN (Hanai & Associates) — 3/F ShinozukaBuilding, 2-27-16 Minami-Aoyama Minato-ku,Tokyo 107-0062, tel (81 3) 3479-2560, fax (81 3)3479-6095. Contact — Koichi Hanai, emailhanai@hanai-cpa.co.jpKOREA (Seoil & Company) — 3/Fl. ShinyungBuilding, 46-10 Jamwon-dong, Seocho-ku, Seoul137906, tel (82 2) 3218-8012, fax (82 2) 3218-8088. Contact — Hyung Moo Kim, emailhmkim@seoilacc.co.krMACAU (Wong Brothers & Co) — 19th Floor,Mass Mutual Tower, 38 Gloucester Road,Wanchai, Hong Kong, tel (852) 2520-2701, fax(852) 2861-3757. Contact — Ricky Wong, emailinfo@wongbros.com.hkMALAYSIA (GEP Associates) — 25 Jalan PJU1/42A, Dataran Prima, 47301 Petaling Jaya,Selangor Darul Ehsan, Kuala Lumpur, tel (60 3)7803-3390, fax (60 3) 7803-3502. Contact — FelixW. T. Gong, email fgong@gep.com.my Also inPenang and Johor Bahru.PAKISTAN (Riaz Ahmad, Saqib, Gohar & Co.) —5-Nasim C.H.S., Major Nazir Bhatti Road, OffShaheed-e-Millat Road, Karachi 74800, tel (9221) 494-5427, fax (92 21) 493-2629. Contact —Gohar Manzoor, email rasg@super.net.pk Alsoin Lahore and Faisalabad.PHILIPPINES (Ramon F. Garcia & Co, CPAs) —30th Floor, Burgundy, Corporate Tower, 252 Sen.Gil Puyat Avenue, Manila 1200, tel (63 2) 884 -2778, fax (63 2) 884-2789. Contact — Ramon F.Garcia, email rfgco@rfgarcia.comSINGAPORE (Boon Suan Lee & Co.) — 220Orchard Road, #05-02 Midpoint Orchard,Singapore 238852, tel (65) 6235-3388, fax (65)6235-3168. Contact — Boon Suan Lee, emailbslgrp@bslco.com.sgSRI LANKA (Abeyratna & Co) — Sir BaronJayatilleke Mawatha, Colombo 1, tel (94 11) 238-5109, fax (94 11) 232-6754. Contact — DamianSunil Abeyratna, email enomal@sltnet.lkTAIWAN (EnWISE CPAs & Co.) — 8F-1, 130 Tai-Yuan N. Road, Taichung 404, tel (886 4) 2296-6234, fax (886 4) 2296-0607. Contact — SpornChen, email service@enwise.com.tw Also inTaipei.THAILAND (Thai Consultants Group) —2401/21 Soi 18, Ayodhaya Tower, Floor 15B, OffRatchadapisek Road, Huay Kwang, Bangkok10320, tel (66 2) 274-1686, fax (66 2) 692-8400.Contact — Kijja Summacarava, email kjja@thaiaudit.co.th.BUILDING AND CONSTRUCTIONwww.bluescopesteelasia.comAUSTRALIA (Head Office) — Level 11, 120Collins Street, Melbourne VIC 3000, tel (61 3)9666-4000. Also Asian Building & ManufacturingMarkets, Suite 116, Jones Bay, Wharf 26-32,Pirrama Road, Pyrmont, Sydney NSW 2009, tel(61 2) 9292-6666.BRUNEI DARUSSALAM (BlueScope Lysaght(Brunei) Sdn Bhd) — Industrial Complex, BeribiPhase 1, 6 km Jalan Gadong BE 1118, tel (67 32)447- 155.CHINA (BlueScope Buildings China) — 21 BaoSheng Road, Songjiang Industrial Zone,Shanghai 201613 PRC, tel (86 21) 5774-1717.INDIA (Tata BlueScope Steel Limited) — TheMetropolitan, Final Plot No. 27, Survey No. 21,Wakdewadi, Shivaji Nagar, Pune 411005, tel (9120) 6621-8000.INDONESIA (PT BlueScope Steel Indonesia) —Deutsche Bank Building, 7th Floor Suite 701,Jalan Imam Bonjol, No. 80, Jakarta 10310, tel (6221) 3983-1600.Malaysia (BlueScope Steel Asia Sdn Bhd) — No6. Jalan Persiaran Kemajuan, Seksyen 16, PusatBisness Bukit Raja, 40800 Shah Alam, tel (60 3)5519-2000.MALAYSIA (BlueScope Steel (Malaysia) SdnBhd) — Lot 1551 Jalan Bukit Kapar, Kapar42200, Selangor Darul Ehsan, tel (60 3) 3361-6888.PHILIPPINES (BlueScope Steel Philippines) —603 SEDCCO Building, 120 Rada, Corner LegaspiStreet, Legasapi Village, Makati City, 1229, tel(63 2) 817-0121.SINGAPORE (BlueScope Lysaght (Singapore)Pte Ltd) — 18 Benoi Sector, Jurong Town,Singapore 629851, tel (65) 6264-1577.SRI LANKA (BlueScope Lysaght Lanka (Pvt)Limited) — 26 & 27 Sapugaskanda IndustrialEstate, Pattiwila Road, Sapugaskanda, tel (94 11)240-0611.THAILAND (BlueScope Steel-Thailand Limited— 7th Floor, Bangkok Thai Tower, 104/1Rangnam Road Payathai,Rajthevi, Bangkok10400, tel (66 2) 642-7155.VIETNAM (BlueScope Steel (Vietnam) Limited)– 6th Floor, BITEXCO Building, 19-15 NguyenHue St., District 1, Ho Chi Minh City, tel (84 8)821-0066.(BlueScope Steel Buildings (Vietnam) Limited)— 5th Floor, BITEXCO Building, 19-15 NguyenHue St., District 1, Ho Chi Minh City, tel (84 8)821-0121.FIJI (BlueScope Lysaght (Fiji) Limited) — 169-171 Lakeba Street, Samabula, Suva, tel (67 9)338-2388.CONSTRUCTION COST CONSULTANTS ANDQUALITY SURVEYORSwww.pagekirkland.comAUSTRALIA (Head Office) — The PodiumBuilding, 1 Market Street, Sydney, NSW 2000, tel(61 2) 9283-7311, fax (61 2) 9283-7322. Contact —Colin Richardson, Philip Kirkland, emailsydney@pagekirkland.com Also in Brisbane,Canberra, Coffs Harbour, Melbourne and Perth.CHINA — Suite 605, Kuen Yang InternationalBusiness Plaza, No. 798 Zhao Jia Bang Road,Shanghai 200030, tel (86 21) 6473-9099, fax (8621) 6473-9105. Contact — Richard Zhang, emailshanghai@ pagekirkland.comHONG KONG — 46/F China Online Centre, 333Lockhart Road, Wanchai, tel (85 2) 2891-9917,fax (85 2) 2891-9927. Contact — Shane D’Arcy,email hongkong@pagekirkland.comJAPAN — tel (852) 9028-3110. Contact — ShaneD’Arcy, email japan@pagekirkland.comMACAU — EDF. Centro Commercial da PraiaGrande, Avenida da Praia Grande No. 429, 25 D,tel (853) 2855-0413, fax (853) 2856-0019. Contact— Shane D'Arcy, email macau@pagekirkland.comMALAYSIA — Suite E-11-05 & E-11-06, WismaSunrise, Plaza Mont’ Kiara, No.2 Jalan Kiara,Mont’ Kiara 50480, Kuala Lumpur, tel (60 3)6203-5113, fax (60 3) 6203-5112. Contact — Dato’Peter Tan, email kualalumpur@pagekirkland.comNEW ZEALAND — 541 Parnell Road, PO Box99108, Newmarket, Auckland, tel (64) 9358-1746,fax (64) 9358-1734. Contact — Bevan Brown,Martin Quartermaine, Patrick Hanlon, emailpknz@pagekirkland.co.nzSINGAPORE — 452 North Bridge Road #07-00,Singapore 188733, tel (65) 6338-8212, fax (65)6338-6202. Contact — Melvin Aw, email singapore@pagekirkland.comTHAILAND — 53/1 Soi Sukhumvit 26, SukhumvitRoad, Klongton, Klongtoey, Bangkok 10110, tel(66 2) 259-8545, fax (66 2) 259-8546. Contact —James Bryce, Somchai Samleerangkul, emailbangkok@pagekirkland.comUNITED ARAB EMIRATES — PO Box 75450,Office 403, The Atrium Centre, Khalid Bin WaleedRoad, Dubai, tel (971 4) 355-1517, fax (971 4) 355-8736. Contact — Blair Martin, emaildubai@pagekirland.comVIETNAM — Level 2, 127-129-129A Nguyen HueStreet, FIDI Tourist Office Building, District 1, HoChi Minh City, tel (84 8) 914-1519, fax (84 8) 914-1518. Also at Level 13, 49 Hai Ba Trung Street,Hanoi Tower, Hanoi. tel (84 4) 934-3976, fax (84 4)934-3966. Contact — Bao Nguyen, email vietnam@pagekirkland.comCONSTRUCTION/PROJECT MANAGEMENTLeighton Holdings Limitedwww.leighton.com.auAUSTRALIA (Head Office) — 472 PacificHighway, St Leonards NSW 2065, tel (61 2) 9925-6666, fax (61 2) 9925-6000. Contact — JustinGrogan, General Manager, Investor & CorporateAffairs, email justin.grogan@leighton.com.auwww.leightonint.cominfo@leightonint.comLEIGHTON INTERNATIONAL (Dubai HeadOffice) — Dubai Internet City, Ground Floor, Al-Sa Building, Dubai, UAE, tel (971 4) 304-6333, fax(971 4) 304-6369. Contact – David Savage.INDIA (Leighton Contractors (India) Pvt Ltd) —302-303, 3/F Windsor Building, CST Road,Vidhyanagari Marg, Kalina, Santa Cruz (East),Mumbai 400 098, tel (91 22) 6719-0000, fax (9122) 6719-0199. Contact — Russell Waught. AlsoBlock No. 1, Unit A&B, Ground Floor TempleSteps, 184-187 Anna Salai, Saldapet, Chennai600015, tel (91 44) 4311-4101/07, fax (91 44)4311-4108. Contact — Simon Chivers. RadissonCommercial Plaza, Wing B, 2/F, A.B. Hotel PvtLtd, N.H.#8, New Delhi 1100037, tel (9111) 4608-8200, fax (9111) 2677-9427. Contact — ThomasMcGuire.➔ CONTINUED PAGE 26ASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008 | 25

PROFESSIONAL SERVICES CONTACT DIRECTORY 2008➔ FROM PAGE 25INDIA (Thiess Leighton India Pvt Ltd) —Radisson Commercial Plaza, Wing B 4th Floor,National Highway #8, Mahipalpur, New Delhi 110037, tel (91 11) 4608-8200, fax (91 11) 2677-9427.INDONESIA (PT Leighton ContractorsIndonesia) — Ratu Prabu 1 Building, 9th Floor,Jl. TB Simatupang KAV 20, Cilandak Timur,Jakarta 12560, tel (62 21) 7884-9611, fax (62 21)7884-9622/23. Contact — Steve Wilson.MALAYSIA (Leighton Contractors (Malaysia)Sdn Bhd) — 14th Floor, Menara Multi-Purpose,No. 8 Jalan Munshi Abdullah, 50100 KualaLumpur, tel (60 3) 2035-1788, fax (60 3) 2692-5388. Contact — Tony Harvey.MALAYSIA (Leighton (Southeast Asia)) — 13thFloor, Menara Multi-Purpose, No. 8, JalanMunshi Abdullah, 50100 Kuala Lumpur,Malaysia, tel (60 3) 2035-1688, fax (60 3) 2692-4388. Contact — David Savage.SINGAPORE (Leighton Contractors (Singapore)Pte Ltd) — #27-01, 3 Anson Road, SpringleafTower, Singapore 079909, tel (65) 6471-5751/52/56/57, fax (65) 6471-5755. Contact —Tony Harvey.UNITED ARAB EMIRATES (Gulf Leighton LLC)— Level 2, Al Goze Building, Sheikh Zayed Road,Dubai, tel (97 14) 304-6333, fax (97 14) 304-6369.Contact — Graeme Dunn. Also LeightonContracting (Abu Dhabi) LLC — PO Box 94267,Office 1202, C2 Building, Seventh Street, AlBateen, Abu Dhabi, tel (971 2) 681-4355, fax (9712) 681-4377.Level 2 Regus Building, Airport End - D RingRoad, Al Mataar Al Qadeen District QATAR(Leighton Contracting Qatar W.L.L. — – Doha,PO Box 32316, Nadhee Rayyan Street, OldRayyan, Doha, tel (974) 4231-285, fax (974) 4231-288.www.leightonasia.cominfo@leightonasia.comLEIGHTON ASIA (Hong Kong Head Office) —39/F Sun Hung Kai Centre, 30 Harbour Road,Hong Kong, tel (852) 2823-1111, fax (852) 2529-8784. Contact — Hamish Tyrwhitt.HONG KONG (Leighton Contractors (Asia)Limited) — 39/F Sun Hung Kai Centre, 30Harbour Road, tel (852) 2823-1111 fax (852)2529-8784. Contact — Mark Ashton.CAMBODIA (Leighton Contractors Asia(Cambodia) Co. Ltd.): Units 39 & 40 PhnomPenh Hotel, 53 Monivong Boulevard, SangkatSrah Chak, Khan Daun Penh, tel (855 23) 998-706, fax (855 23) 998-706. Contact — Steve Bennet.CHINA (Leighton Projects Consulting(Shanghai) Limited) — Suite 14B, 14/F, NewShanghai International Tower, 360 Pudong SouthRoad, Shanghai 200120,tel (8621) 5882-3345, fax(8621) 5882-4029. Contact — Michael Wright.CHINA (Leighton Projects Consulting(Shanghai) Limited) — Room 1208-1210, 12/FOriental Media Center, 4 Guanghua Road,Chaoyang District, Beijing 100026, tel (86 10)6583-2727, fax (86 10) 6583-3915. Contact —Michael Wright.KOREA (Leighton Contractors (Asia) Limited)— IKP Building, 300-6 Yomgok-dong Seocho-gu,Seoul, Korea 135-177, tel (822) 3497-1834, fax(822) 3497-1634. Contact — Michael Griffin.LAOS (Leighton Contractors (Laos) Co.Limited) — 265 Bangalow Road, PhonesinouaneVillage, Vientiane, Lao P.D.R., tel (856 21) 415-356, fax (856 21) 415-357. Contact — SteveBennet.MONGOLIA (Leighton Mining andInfrastructure Mongolia Limited) — Room 511,Gurvan Gal Trade LLC Building, SukhbatarDistrict 1st khoroo, Chinggis Avenue 8-1,Ulaanbataar. Contact — Bruce Gardiner.PHILIPPINES (Leighton Contractors(Philippines) Inc.) — 7/F L.V. Locsin Building,6752 Ayala corner Makati Avenue, Makati City1226, tel (632) 841-0998, fax (632) 811-0158.Contact — Phil Naughton.THAILAND (Thai Leighton Limited) — 6/F SPCBuilding, 1 Soi Chaemchan, Sukhumvit 55 Road,Bangkok 10110, tel (662) 714-8580, fax (662) 391-4503. Contact — Steve Bennet.VIETNAM (Leighton Contractors Asia(Vietnam) Limited) — Level 2, Kimdo BusinessCentre, 123 Le Loi Street, District 1, Ho Chi MinhCity, tel (848) 821-5524, fax (848) 821-5523.Contact — Steve Bennet.GUAM (Leighton Contractors Inc.) — Suite 301,East-West Business Center Building, 718 NorthMarine Corps Drive, Upper Tumon, tel (16 71)648-2244, fax (16 71) 648-2247. Contact — PhilNaughton.www.thiess.com.auAUSTRALIA ( Head Office) — 179 Grey Street,South Bank, Brisbane QLD, 4101, tel (61 7) 3002-9000, fax (61 7) 3002-9009. Contact — RayWilson, email rwilson@thiess.com.auINDIA (Thiess-Leighton India Pvt Ltd) HeadOffice — Radisson Commercial Plaza, 4thFloor, National Highway #8, Mahipalpur, NewDelhi 110037, tel (91 11) 4608-8200, fax (91 11)2677-9427. Also in RBD Building Unit-B, 5thFloor, RDS Boulevard, Plot No. K1, Sector-V,Block-EP & GP, Salt Lake, Kolkata 700 091.INDONESIA (PT Thiess Contractors Indonesia)— JL TB Simatupang Kav 12, Pondok Pinang,Jakarta 12310, tel (62 21) 7599-9999, fax (62 21)7599-9800. Contact — Bruce Munro, emailbmunro@thiess.co.idCONSULTING ENGINEERSwww.ghd.com.auAUSTRALIA (GHD Pty Ltd) — 10 Bond Street,Sydney NSW 2000. tel (61 2) 9239-7100, fax (61 2)9239-7199. Contact — Bernard O’Brien, ChiefMarketing Officer, email Benard.OBrien@ghd.com.auCHINA (GHD Consulting (Beijing) Co Ltd) — 21F, Tower C, Xihuan Plaza, No 1 XizhimenwaiAvenue, Xicheng District, Beijing 100044, tel (8610) 5930-1688, fax (86 10) 5930-1699,bjmail@ghd.com.au Contact — Jin Zhang Zou,Manager China.CHINA (Changsha Office) — Unit 1210- 1212,The First Boulevard Building, No 2 Wuyi WesternRoad, Changsha 410008, tel (86 731) 442-2238,fax (86 731) 441-7197. Contact — Min Bin, emailminbin@ghd.com.auCHINA (Geo-Eng Yangtze Australia Co Ltd(GEYA)) — Juiwanfang Zhaijiatiao, JianganDistrict, Wuhan, Hubei, 430010, tel (86 27) 8262-1789, fax (86 27) 8262-1788, emailwhmail@ghd.com.au Contact — Xing Cao,Office Manager.HONG KONG (GHD Limited (previously Rankine& Hill Hong Kong)) — Unit 3, 24/F CiitcorpCenter, 18 Whitfield Road, Causeway Bay, tel (852) 3658-8000, fax (85 2) 3658-8088, email hkgmail@ghd.com.auContact — Jeff Fok.INDONESIA (PT Global Hutama Desain) — 4thFloor, Suite 401, Wirausaha Building, Jl. H RRasuna Said Kav C-5, Jakarta 12940, tel (62 21)2557-8000, fax (62 21) 522-9095, emailjktmail@ghd.com.au Contact — Greg Lee, OfficeManager, or Reviyeno Nasution, BusinessDevelopment Manager.MALAYSIA (GHD Perunding Sdn Bhd) — 22ndFloor, Putra Place, 100 Jalan Putra 50350, KualaLumpur, tel (60 3) 2332-3800, fax (60 3) 2332-3900, klmail@ghd.com.au Contact — YokeKeong Shin, Office Manager – Kuala Lumpur, orHin Wai Woo, Business Development Manager.MALAYSIA (GHD Perunding Sdn Bhd) — 31B,Jalan Lim Bo Seng, 30300 Ipoh, Perak, tel (60 5)241-4015, fax (60 5) 253-4625. Contact — HongChoong Kok, Office Manager – Ipoh.MALAYSIA (GHD Perunding Sdn Bhd) — B-1566Taman Lembaga, Jalan Beserah, 25300 Kuantan,Pehang, tel (60 9) 566-2463, fax (60 9) 566-2933.Contact — Ab. Rahman Hashim, Office Manager- Kuantan.PHILIPPINES (GHD Pty Ltd) — 2nd Floor, 111 Paseode Roxas, Legaspi Village 1229, Makati City, MetroManila, tel (63 2) 812-5129, fax (63 2) 812-5172, emailmnlmail@ghd.com.au Contact — Fraser Watt,Operation Centre Manager – Southeast Asia.VIETNAM (GHD Pty Ltd) — 3 Phung Khac KhoanStreet, District 1, Ho Chi Minh City, tel (84 8) 520-3444, fax (84 8) 829-4588, emailsgnmail@ghd.com.au Contact — Glen Reinsch,General Director- GHD Vietnam Ltd.EGYPT (GHD Global Egypt LLC) — HiTeknoFalBuilding, 43R Section 6, Zahraa Maadi, Cairo.Postal address - PO Box 304, Cairo 11728, tel(202) 7537-215/216, fax (202) 7546-812, emailcairomail@ghd.com.au Contact — David Ryan,Operating Centre Manager - Middle East, or IhabInany, Cairo Office Manager, paul.morris@ghd.com.auPaul Morris, Business Development Manager.QATAR (GHD Global Pty Ltd) — City PlazaBuilding, Al Sadd, Doha. Postal address - PO Box14352, Doha, tel (974) 432-2579, fax (974) 444-6127, email dohmail@ghd.com.au Contact —David Ryan, Operating Centre Manager, MiddleEast, or Michael Kemp, Doha Office Manager,paul.morris@ghd.com.au Paul Morris, BusinessDevelopment Manager.UAE (GHD Global Pty Ltd) — 302 Al MasaoodTower, Airport Road, Deira, Dubai. Postaladdress - PO Box 35972, Dubai, tel (971 4) 294-9858, fax (971 ) 294-9740, emaildxbmail@ghd.com.au Contact — David Ryan,Operating Centre Manager Middle East, orPhillip Biggs, Dubai Office Manager, paul.morris@ghd.com.au"Paul Morris, BusinessDevelopment Manager.UAE (GHD Global Pty Ltd) — 905 Salah BinSalah Building, Mamzar, Sharjah. Postaladdress - PO Box 67696, Sharjah, tel (971 6) 577-3300, fax (971 6) 577-3311, emailshjmail@ghd.com.au Contact —paul.morris@ghd.com.au" Paul Morris, BusinessDevelopment Manager.UAE (GHD Global Pty Ltd) — Office 801, LuluCentre, Salam Street, Abu Dhabi. Postal address- PO Box 45921, Abu Dhabi, tel (971 2) 696-8700,fax (971 2) 678-2824, email abumail@ghd.com.auContact — Alan Lindberg, Abu Dhabi OfficeManager, or paul.morris@ghd.com.au" PaulMorris, Business Development Manager.www.meinhardtgroup.comAUSTRALIA (Melbourne - Global Head Office)— 501 Swanston Street, Melbourne VIC 3000, tel(61 3) 8676-1200, fax (61 3) 8676-1201, email contact@meinhardtgroupcomContact — PhilTreyvaud, Chief Executive Officer.AUSTRALIA (Sydney) — Level 2, 400 KentStreet, Sydney NSW 2000, tel (61 2) 9699-3088,fax (61 2) 9319-7508, email contact.nsw@meinhardtgroup.comAUSTRALIA (Brisbane) — Level 2, 135 WickhamTerrace, Spring Hill 4000 QLD, tel (61 7) 3018-5000, fax (61 7) 3018-5099, emailcontact.qld@meinhardtgroup.comAUSTRALIA (Adelaide) — 60-70 Queen StreetAdelaide 5000 SA, tel (61 8) 8227-1544, fax (61 8)8227-1488, email contact.sa@meinhardtgroup.comcontact.sa@meinhardtgroup.comCHINA (BEIJING) — Room 506, Blue CastleInternational Centre, Tower 1, 3 West DawangRoad, Chaoyang District, Beijing 100022, tel (8610) 8599- 7976, fax (86 10) 8599-7186, emailinfo@bj.meinhardt.com.cn Contact — Shaun Siow.26 | ASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008

CONTACT DIRECTORY 2008PROFESSIONAL SERVICESCHINA (SHANGHAI) — 405 Universal Centre,175 Xiang Yang Road South, Shanghai 200031, tel(86 21) 5465-6118, fax (86 21) 5465-6128, emailinfo@sh.meinhardt.com.cn Contact — Shaun Siow.CHINA (SHENZHEN) — 1316-1318 GuangyinBuilding, 38 Futian Nana Road, Futian District,Shenzhen, 518045, tel (86 755) 8375-1558, fax (86755) 8339-8947, email msz@sz.meinhardt.com.cnContact — WH Wong.HONG KONG — 4th Floor, Wah Ming Centre, 421Queen's Road West, Hong Kong, tel (852) 2858-0738, fax (852) 2559-1613, email pam@meinhardt.com.auContact — Laurie Smith.INDIA (Meinhardt (Singapore) Pte Ltd) — IndiaBranch Office, A-8 Sector 16, Noida 201 301,Uttar Pradesh, tel (91 120) 251-6165, fax (91 120)251-5745, email info@meinhardt.com Contact —Rajesh Srivastava.INDONESIA — Grha Tirtadi 3/F, Jalan RadenSaleh No. 20 10330, Jakarta, tel (62-21) 392-9911, fax (62-21) 392-5995, email indo@meinhardt.co.idContact — Djinadi Gunawan.MACAU — 4V Torre 3, EDF Hung On 1321 Avenidada Amizade, Macau, tel (853) 2872-5811, fax (853)2827-6247.MALAYSIA — Suite 59.01-9.07, Level 9, Amoda22, Jalan Imbi, Kuala Lumpur 55100, tel (60 3)2710- 9488, fax (60 3) 2710-9489, emailmeinh@po.jaring.my Contact — Ir Dr Lim BoomTiong.PAKISTAN — D-91/3, KDA Scheme No.1 MainTipu Sultan Road, Karachi 75350, tel (92 21) 454-1771, fax (92 21) 454-8670, email mail@meinhardt.com.pkContact — Farrukh Aslam.PHILIPPINES — 25th Floor, 116 Valero, Cor. VARuffino Street, Makati City 1227, tel (63 2) 887-1391, fax (63 2) 887- 1172, email mpi@meinhardt.com.phContact — Ferdinand V Naniong.SINGAPORE — 168 Jalan Bukit Merah, #09-01Surbana One, Singapore 150168, tel (65) 6273-5255, fax (65) 6274-0788, email info@meinhardt.com.sgContact — Shazad Nasim.THAILAND — 15th Floor, Thanapoom, 1550 NewPetchburi Road, Makkasan Ratchevee 10400,Bangkok, tel (662) 207-0568, fax (662) 207-0574,email thai@meinhardt.net Contact — JohnPollard.UAE (Dubai) — Gold & Diamond Park, SheikhZayed Road, Building 4, Unit 130, PO Box 38349,Dubai, tel (971) 4341-6686, fax (971) 4341-6687,email msplsg@meinhardt.com.sg Contact —Robert Stephens.UAE (Abu Dhabi) — PO Box 46201, Abu Dhabi,United Arab Emirates, tel (971) 2632-4848, fax(971) 2634-4644, email info@meinhardt.aeUnited Kingdom — 4th Floor, The Lightwell, 12-16 Laystall Street, Clerkenwell EC1R 4PF,London, tel (44 20) 7278-7818, fax (44 20) 7837-3512, email eddie.young@meinhardt.co.ukUSA (Texas) — Dallas, 5429 LBJ Freeway, Suite300 - LB129 75240, tel (1 214) 397-0211, fax (1214) 397-0886, email info.dallas@meinhardtusa.comUSA (Miami) — Tower One, 101 NE Third AveSuite 1140, Fort Lauderdale 33301, Florida, tel (1954) 765-3433, fax (1 954) 765-3439, emailinfo.miami@meinhardtusa.comVIETNAM — Maison Pasteur, 180 PasteurStreet, District 1, Ho Chi Minh City, tel (84-8)822-6789, fax (84-8) 822-6383. Contact — DatChau.www.smec.com.auAUSTRALIA — Sydney, Level 6, 76 Berry Street,North Sydney NSW 2060, ,tel (61 2) 9925-5555,fax (61 2) 9925-5566, email smecnsw.enquiry-@smec.com.au Contact — Peter Busbridge,Chief Executive Officer, tel (61 2) 9925-5596, fax(61 2) 9925-5566, email peter.busbridge@-smec.com.au ; Neil Evans, Managing DirectorSMEC Australia, tel (61 2) 992505620, fax (61 2)9925-5566 email neil.evans@smec.com.auMelbourne Level 5, 71 Queens Road, MelbourneVIC 3004, tel (61 3) 9514-1500, fax (61 3) 9514-1502, email vicsmec@smec.com.au Contact —Ross Hitt, Managing Director SMECInternational, tel (61 3) 9514-1552, fax (61 3)9514-1502, email ross.hitt@smec.com.au"ross.hitt@smec.com.au Canberra Unit 2, 10-14Wormald Street, Symonston ACT 2609, tel (61 2)6126-1900, fax (61 2) 6126-1966, email smecact@smec.com.auBrisbane Level 2, 60Leichhardt Street, Spring Hill QLD 4000, tel (61 7)3230-3600, fax (61 7) 3230-3650, email smecbne@smec.com.auPerth Level 6, 12 St George’sTerrace, Perth WA 6000, tel (61 8) 9323-5900, fax(61 8) 9323 5901, email perth@smec.com.auAdelaide Level 24 Santos House, 91 KingWilliam Street, Adelaide SA 5000, tel (61 8) 8113-5351, fax (61 8) 8113-5352, emailsmecsa@smec.com.au North Queensland IstFloor 514 Sturt Street, Townsville QLD 4810, tel(61 7) 4771-6119, fax (61 7) 4771-6120, emailsmecnq@uunet.com.au Gold Coast 40Commercial Road, Ashmore QLD 4214 (PO Box1111, Ashmore City QLD 4214), tel (61 7) 5503-1044, fax (61 7) 5532-0530, emailgoldcoast@smec.com.auAFGHANISTAN (Country Office) — House 01Road 01 (Behind Aryoob Cinema Hall), Karte-Parwan, Kabul, mob (93 700) 218-286, emailzahid.iqbal@smec.com.auAFRICA (Regional Office) — Plot 314B, OffKimweri Avenue, Msasani Village, Dar EsSalaam, Tanzania (PO Box 105866), tel (255 22)260-1596/97, fax (255 22) 260-1590, emailrmafrica@smecafrica.comBANGLADESH (Regional Office) — House 374,Lane 06, DOHS Baridhara, Dhaka 1206, tel (8802) 882-6223, fax (880 2) 882-7545, emailsmecbd@smecbd.comCAMBODIA — House No. 24, Street 264, PhnomPenh, tel (855 23) 362-672, fax (855 23) 217-943,email smeccam@smec.com.khCHINA — Room 4A1, 4/F Office Tower B, EastGate Plaza, 29 Dongzhong Street, DongchengDistrict, Beijing 100027, tel (86 10) 6417-9008, fax(86 10) 6417-9005, email smecbj@publica.bj.cninfo.netHONG KONG — 14/F Hua Fu CommercialBuilding, 111 Queens Road West, Sheung Wan,tel (852) 2517-1136, fax (852) 2540-3162, emailsmecasia@smec.com.hkINDIA — 5th Floor, DLF Building No 8, Tower C,DLF Cyber City Phase II, Gurgaon 122002,Haryana, tel (91 124) 438-0042, fax (91 124) 438-0043, email smec@vsnl.comINDONESIA — Gedung NHB, 2nd Floor, JalanMelawai Raya No. 14, Kebayoran Baru, Jakarta12160, tel (62 21) 720-6334, fax (62 21) 720-5724,email jkt.rep@smec.co.idKAZAKSTAN — Room No. 312, 76/109 AbayAvenue, 050057 Almaty, Kazakstan, tel (7 3272)581-718, fax (73272) 582-335, email smec.arman@itte.kzMALAYSIA — Unit 509 Block B, PhileoDamansara II, Jalan 16/11 Section 16, 46350Petaling Jaya, Selangor Darul Ehsan, tel (60 3)7955-0305, fax (60 3) 7955-2110, emailmgr@smecmal.po.myMONGOLIA — PO 49, Box 772, Ulaanbaatar,210349, tel (976) 9666-4886, fax (976) 1133-0480,email amec_smec@magicnet.mnPACIFIC REGIONAL OFFICE — 1st Floor 514Sturt Street, Townsville QLD 4810, Australia, tel(61 7) 4771-6119, fax (61 7) 4771-6120, emailrmpacific@smec.com.auPAKISTAN — 16B Kaghan Road, Sector F-8/4,Islamabad, tel (92 51) 282-8316, fax (92 51) 226-1174, email asham_smec@dsl.net.pkPAPUA NEW GUINEA — Section 58, Lot 3,Waigani Drive, Gordon NCD, tel (675) 325-1822,fax (675) 325-3780, email smecpng@smec.com.pgPHILIPPINES — Unit 1606 The Orient Square,Emerald Ave, Ortigas Center, Pasig City, MetroManila, tel (63 2) 631-6497/631-8726, fax (63 2)635-6676, email smecphils@smec.com.phQATAR — Suite 10 Level 4, Eli France Building,Salwa Road, Ramada Signal Intersection, Doha,tel (974) 437-5290, fax (974) 437-5283, emailsmec@qatar.net.qaSRI LANKA — No 172, W A Silva Mawatha,Wellawatta, Colombo 06, tel (94 11) 236-6519, fax(94 11) 551-0685, email smeccolombo@sltnet.lkUNITED ARAB EMIRATES — Level 1, EmiratesHoldings Building (behind Dana Hotel), ElectraStreet, Adu Dhabi, tel (971 2) 645-5684, fax (9712) 645-5685, email smec@eim.aeVIETNAM — 1st Floor Elegant Suites Building,19B Ha Hoi, Hoan Kiem District, Hanoi, tel (84 4)942-1956, fax (84 4) 942-1946, emailsmec@smec.com.vnETHIOPIA — Bole Kifle Ketema, Kebek 5/6House No 189, Addis Ababa, tel (2511 16) 621-246, fax (2511 16) 621-247 emailsmecet@ethionet.etGHANA — Ground Floor, Trinity House, RingRoad East, Accra, PO Box AN 12674, tel (233 21)768-572, email smecgh@africaonline.com.ghKENYA — Buru Buru Arcade, Mumias SouthRoad, Nairobi, PO Box 41505 – 00100, tel (254020) 201-6958, mob (254 733) 529-464, emailjames.thuku@smecafrica.comMOZAMBIQUE — 657 Ave Julius Nyerere,Maputo, tel (258 1) 415-572, fax (258 1) 312-796,email fredy.madeira@smecafrica.comUGANDA — 2321 Zziwa Drive, Ntinda-Buye,Kampala, PO Box 9723, tel/fax (256 41) 286-356,email joel.baliddawa@smecafrica.comKUWAIT — Block 3, Street 307, Bldg 38, Al-Salaam Area, South Surra, Kuwait (PO Box 730Souk Al-Ameer, tel (965) 521-4916/17, fax (965)521-4918, email ibrahim@smecq8.comCONSULTING SERVICESAustralian BusinessInternational Trade Serviceswww.australianbusiness.com.auAUSTRALIA — International Trade, 140 ArthurStreet, North Sydney, NSW 2060, tel (61 2) 9458-7456, fax (61 2) 9955-8914. Contact — ChristineGibbs Stewart, email chris.stewart@australianbusiness.com.auINDIA — 3073/B-4, Vasant Kunj, New Delhi –1100700, tel (91 11) (2689-5241), fax (91 11)2689-8073. Contact — SP Joshi, ClientManager- India, email spjoshi@australianbusiness.com.auwebwww.australianbusiness.com.au/trade_indiaUNSW Consulting and Expert Opinion Serviceswww.consulting.unsw.edu.auAUSTRALIA — Level 16, Mathews Building, TheUniversity of New South Wales, Kensington,Sydney NSW 2052, tel (61 2) 9385-3175, fax (612) 9662-6566, email consulting@unsw.edu.auENGINEERING SERVICESSPIRAC Pty Ltdwww.spirac.comAUSTRALIA (Head Office) — 30 Cocos Drive,Bibra Lake, WA 6163, te (61 8) 9434-0770 emailinfo@spirac.com.au Contact — Don Allanach,email don.allanach@spirac.com.au Also inSydney, Melbourne and Brisbane.HONG KONG (Tenson Engineering Ltd) - Room908. 9/F, Nan Fung Commercial Centre, 19 LamLok Street, Kowloon Bay, Kowloon, tel (852)2758-0878. Contact — Sammy Leung, emailsleung@tenson.com.hkJAPAN (Tomoe Engineering) — Art VillageOsaki Central Tower,2-2,Osaki 1- ChomeShingawa-Ku TOKYO 141-0032. tel (81 3) 3271-4092. Contact —Yoshito Honma, emaily.honma@me.tomo-e.co.jpSINGAPORE (Puchaun Engineering Ltd) —Building 103 Boon Keng Road, 4th Floor 01/02Kallang Basin Industrial Estate, 3379774Singapore, tel (65) 6292-9233. Contact — HangTee Fong.UNITED ARAB EMIRATES (MENA WATER) —Plot D3-11, Sharjah International Airport,Sharjah United Arab Emirates, tel (97 1) 6557-5507. Contact — Atif Gafer, Managing Director,email md@mena-water.com➔ CONTINUED PAGE 28ASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008 | 27

PROFESSIONAL SERVICES CONTACT DIRECTORY 2008➔ FROM PAGE 27ENGINEERING SOLUTIONSHeat and Control Pty Ltdwww.heatandcontrol.comHeat and Control Pty Ltd is a global companyfocussing on the design, manufacture, installationand service support of food processing andpackaging systems.AUSTRALIA — 407 Creek Road, Mount GravattBrisbane QLD 4122, Australia, tel (61 7) 3877-6333, fax (61 7) 343-8371. Contact — Ricky Ong,email r.ong@heatandcontrol.com.auCHINA — 2 Hengfei Road, Nanjing Economic andTechnological Development Zone, Xingang210042, Nanjing, tel (86 25) 8403-5000, fax (86 25)8580-5033, Contact — Richard Feng, emailrfeng@heatandcontrol. cnSINGAPORE — 438 Alexandra Road, #12-03Alexandra Point, Singapore 119958, tel (65)6273- 6362, fax (65) 6273-8161. Contact —Richard Hong, email richard@heatandcontrol.com.sgINDIA — E2, 3rd Avenue, Anna Nagar East,Chennai 600 102, India, tel (91 44) 4210-3950/3951, fax (91 44) 4210-3949. Contact —Manoj Paul, email manojp@heatandcontrol.co.inLEGAL SERVICESwww.aar.com.auAllens Arthur Robinson had been providing legalservices for clients in Australia for more than 180years and in Asia for the past 30 years.AUSTRALIA — Level 28, Deutsche Bank Place,Cnr of Hunter & Phillip Streets, Sydney NSW2000, tel (61 2) 9230-4000, fax (61 2) 9230-5333,email contactus@aar.com.auCAMBODIA — No. 11, Street 41, Sangkat TonleBassac, Khan Chamcar Monn, Phnom Penh, tel(855) 1290-6115. Contact — Gavin MacLaren,email Gavin.MacLaren@aar.com.auCHINA (Beijing) — Level 8, Unit 4, Office TowerE3, The Towers, Oriental Plaza, No. 1 East ChangAn Avenue, Dong Cheng District, Beijing 100378PRC, tel (86 10) 8515-0250, fax (86 10) 8515-0251.Contact — Seamus Cornelius, emailSeamus.Cornelius@aar.com.auCHINA (Shanghai) — 5/F HSBC Tower, 1000Lujiazui Ring Road, Pudong New Area, Shanghai200120 PRC, tel (86 21) 6841-2828, fax (86 21)6841-2829. Contact — Nigel Papi, emailNigel.Papi@aar.com.auHONG KONG — 49/F One Exchange Square, 8Connaught Place, Central, tel (852) 2840-1202,fax (852) 2840-0686. Contact — Don Hess, emailDon.Hess@aar.com.auINDONESIA — Widyawan & Partners PlazaABDA, 7th Floor, LI Jend Sudirman Kav 59,Jakarta Selatan 12190, tel (62 21) 5140-1240, fax(62 21) 5140-1242. Contact — David Holme,email David.Holme@aar.com.auPAPUA NEW GUINEA — Level 5, Pacific Place,Cnr Musgrave Street & Champion Parade, PortMoresby, tel (67 5) 320-2000, fax (67 5) 320-0588.Contact — Vincent Bull, emailVincent.Bull@aar.com.auSINGAPORE — One Temasek Avenue, #35-01Millenia Tower, Singapore 039192, tel (65) 6535-6622, fax (65) 6535-4855. Contact — GavinMacLaren, email Gavin.MacLaren@aar.com.auTHAILAND — Siam Premier International LawOffices, 26th Floor, The Offices at Central World,999/9 Rama Road, Pathumwan Bangkok 10330,tel (66) 2646-1888, fax (66) 2646-1919. Contact —Marcus Clark, email Marcus.Clark@aar.com.auVIETNAM (Hanoi) — Suite 401, Hanoi Towers, 49Hai Ba Trung, Hanoi, tel (84 4) 936-0990, fax (844) 936-0984. Contact — Bill Magennis, emailBill.Magennis@aar.com.auVIETNAM (Ho Chi Minh City) — Suite 605,Saigon Tower, 29 Le Duan Boulevard, District 1Ho Chi Minh City, tel (84 8) 822-1717, fax (84 8)822-1818. Contact — Nigel Russell, emailNigel.Russell@aar.com.auwww.claytonutz.comClayton Utz regularly advises overseas corporations onstrategies and structures for investing and doing businessin Australia and handles foreign acquisitions andsales on behalf of local clients and multinationalsacross Asia. Our strong connections with leading firmsacross the globe is enhanced by our membership of twoprestigious international legal networks, the Pacific RimAdvisory Council (PRAC) and Lex Mundi. Clayton Utz isthe only Australian firm that is a member of these twoleading international legal networks.AUSTRALIA — Levels 19-35, No. 1 O'ConnellStreet, Sydney NSW 2000, tel (61 2) 9353-4000,fax (61 2) 8220-6700. Contact — David Fagan,email dfagan@claytonutz.com or Stuart Clark,email sclark@claytonutz.comDeaconswww.deacons.com.auAUSTRALIA — For information on our Asian capability,please contact Kevin Hobgood-Brown, tel (61 2)9330-8241, email Kevin.hobgoodbrown@deacons.com.auCHINA — (Deacons Beijing Representative Office),Suite 11, Level 8, Tower W1, The Towers, OrientalPlaza, 1 East Chang An Avenue, Dong Cheng District,Beijing 100738, tel (86 10) 8518-2338, email beijing@deacons.com.cn Also in Guangzhou – emailguangzhou@deacons.com.cn and Shanghai – emailshanghai@deacons.com.cnHONG KONG — 5th Floor, Alexandra House, 18Chater Road, Central, tel (852) 2825-9211, emailhongkong@deacons.com.hkINDONESIA — Sudirman Plaza, Indofood Tower, 7thFloor, Suite 701, Surdirman Kav. 76-78, Jakarta 12910,tel (62 021) 5793-6699, fax (62 021) 5793-6619, emailjakarta@brigatta.co.idMALAYSIA — A-11-3A, Level 11, Megan Avenue,Jalan II Yap Kwan Seng, 50450 Kuala Lumpur, tel (603) 2166-3225, email jlpw@jlpw.com.mySINGAPORE — 6 Tremasek Boulevard, 33-01/02Suntec Tower Four, Singapore 038986, tel (65) 6224-7787, email singapore@deaconslaw.comTAIWAN — 7th Floor, Enterprise Building, 54 ChungShan North Road Section 3, Taipei 10451, tel (886 2)2597-4521, email ailo@ms2.hinet.netTHAILAND — 16th Floor, Q House Sathorn, 11 SouthSathorn Road, Bangkok 10120, tel (66 2) 679-1844,email psph@deacons.bkk.comFreehillswww.freehills.com.auAUSTRALIA — MLC Centre, 19-29 Martin Place,Sydney 2000 tel (61 2) 9225-5000, fax (61 2) 9322- 4000.Contact — John Curtis, email john.curtis@freehills.comINDONESIA (Correspondent Office —Soemadipradja & Taher) — Wisma GKB1 Level 9, Jl.Jenderal Sudirman No.28, Jakarta Pusat 10210, tel (6221) 574-0088, fax (62 21) 574-0068. Contact — HaydnDare, email haydn.dare@freehills.comSINGAPORE — 39 Robinson Road, #08-01 RobinsonPoint, Singapore 068911, tel (65) 6236-9939, fax (65)6538-2575. Contact — John Dick, emailjohn.dick@freehills.com Ignatius Hwang, emailIgnatius.hwang@freehills.comVIETNAM (Correspondent Office — Frasers)— Unit 2, 10th Floor, Saigon Centre, 65 Le LoiBoulevard, District One, Ho Chi Minh City, tel (84 8)824-2733, fax (84 8) 824-2736. Contact — MarkFraser, email mark.fraser@frasersvn.comMallesons Stephen Jaqueswww.mallesons.comAUSTRALIA — Level 61, Governor Phillip Tower, 1Farrer Place, Sydney NSW 2000, tel (61 2) 9296-2000,fax (61 2) 9296-3999, email syd@mallesons.comContact — Scott Bouvier, email scott.bouvier@mallesons.comHONG KONG — 37th Floor, Two InternationalFinance Centre, 8 Finance Street, Central, tel (852)3443-1000, fax (852) 3443-1299, emailhk@mallesons.com Contact — Larry Kwok, emaillarry.kwok@mallesons.comCHINA — Unit 2925, South Tower, Beijing KerryCentre, 1 Guang Hna Road, Chao Yang District,Beijing 100020, tel (86 10) 5927- 2188, fax (86 10)5927-2199, email bei@mallesons.com Contact —John Shi, email john.shi@mallesons.comCHINA — Unit 608-611, 1 Corporate Avenue, 222Hubin Road, Shanghai 200021, tel (86 21) 2308-7688,fax (86 21) 2308-7699, email sha@mallesons.comContact — Larry Kwok, emaillarry.kwok@mallesons.comwww.minterellison.comAUSTRALIA — Aurora Place, 88 Phillip Street,Sydney, NSW 2000, tel (61 2) 9921-8888, fax (612) 9921-8123. Contact — Julian Hill, emailjulian.hill@ minterellison.comCHINA — Suite 4006-4007, 40th Floor, CITICSquare, 1168 Nanjing Road West, Shanghai200041, tel (86 21) 6288-2171, fax (86 21) 6288-2172. Contact — Wan Li, email wan.li@minterellison.comHONG KONG — 15th Floor, Hutchison House, 10Harcourt Road, Central, tel (852) 2841-6888, fax(852) 2810-0235. Contact — Sam Farrands,email sam.farrands@ minterellison.comINDONESIA (Associated Office – Makarim &Taira S.) — 17th Floor, Summitmas Tower 1, JLJenderal Sudirman 61-62, Jakarta 12190, tel (6221) 252-1272, fax (62 21) 252-2750. Contact —Susie Beaumont, emailsusie.beaumont@minterellison.comTressCox Lawyerswww.tresscox.com.auAUSTRALIA — Sydney (Head Office) — Level20, 135 King Street, Sydney NSW 2000 tel (61 2)9228- 9200, fax (61 2) 9228-9299, email contact_us@tresscox.com.au ; Melbourne — Level9, 469 La Trobe Street, Melbourne VIC 3000, tel(61 3) 9602-9444, fax (61 3) 9642-0382, emailcontact_us@tresscox.com.au ; Brisbane —Level 39, Central Plaza 1, 345 Queen Street,Brisbane QLD 4000, tel (61 7) 3004-3500, fax (617) 3004-3599, email contact_us@tresscox.com.auWadley Business Consultingwww.wadley.com.cnWadley Business Consulting and Weir &Associates provide corporate advisory and legalconsulting services.CHINA — Suite 5B, Crystal Century Tower, 567Wei Hai Road, Shanghai 200041, tel (86 21)6288-7299, fax (86 21) 6288-7399. Contact —Michael Wadley, email mwadley@wadley.com.cn28 | ASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008

XMarket PlaceASIA TODAY ONLINE• CLASSIFIED ADVERTISEMENTS X •• TENDERS • EMPLOYMENT • SERVICES •Reachingthe peoplewho matterPosition your company, your products and your services inthe booming Asia market through the pages ofASIA TODAY INTERNATIONAL.Now in its 25th year of publication, ASIA TODAY INTERNATIONALreaches executives actively involved in regional business –and policymakers in Asia making decisions which directly impacton foreign investors and traders.Almost 23% of our subscribers are CEOs or Managing Directors, 15%Directors or General Managers, another 32% Senior Managers, 16% inLibraries (Corporate), 12% in Libraries (Higher Education) and 2% inGovernment*. ASIA TODAY INTERNATIONAL also has wide controlledcirculation through major international airlines, more than 170 four/fivestarhotels and regional business conferences in Asia and Australia.ASIA TODAY INTERNATIONAL is respected in Asia because we reportthe facts, without the fiction. We speak to the people who matter,keeping subscribers informed and ahead of the competition onemerging issues and business opportunities. You won’t findadvertorial in our pages.For more information on advertising opportunities inASIA TODAY INTERNATIONAL, visit us online atwww.asiatodayinternational.com.au or emailadvertising@asiatoday.com.auINTERNATIONALAsia is our businessONLINEASIA TODAY INTERNATIONAL circulation has been auditedannually by the Circulations Audit Board of Australia since 1984.* Figures from subscriber cardsAC 2668-AASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008 | 29

ANOTHER LOW-COST CARRIERTHE OTHER SIDEShangri-Ladoubling-upin ShanghaiHONG KONG – Shangri-La Hotels andResorts will open two luxury hotels in Puxi,Shanghai, in 2011, in the new Jing An KerryCentre on Nanjing Road – a business, retail,entertainment, dining and conference complexdesigned to become a city landmark in theheart of prestigious Jing An District.Both hotels will overlook a 3,000-sq m “townsquare” central courtyard featuring pathways,gardens, water features and al fresco dining.Within the courtyard, Shangri-La is workingwith the Jing An District Government to restoreand preserve an existing home in whichChairman Mao spent several months in 1920.The luxury Jing An Shangri-La, Shanghai willopen mid-2011 on the top 24 floors of a 58-storeybuilding, with the lower floors comprisingrestaurants, offices and retail shops. The 347guestrooms will measure an average 62 sq m.The hotel will also house CHI, The Spa atShangri-La, the Group’s signature spa brand,health club and pool.Shangri-La’s 600-room Jing An Kerry CentreHotel, modelled on the Group’s Kerry CentreHotel in Beijing, will open at the end of 2011.Facilities include a 3,100-sq m health club andswimming pool with outdoor terrace.How the Jian An Kerry Centre, Shanghai will look(left); Altitude Restaurant, Shangri-La, Sydney.Top food awardsLONDON – Shangri-La Hotel, Sydney,has been named one of the best hotels in theworld for food in the UK Conde Nast Travellerannual Gold List for 2008. Two other Australianhotels – Park Hyatt, Sydney and TheObservatory Hotel, Sydney – also made theGold List for the Australasia and South Pacificregion – in the best hotels for service category.Conde Nast readers nominated the x-factorfor Shangri-La, Sydney as the hotel’s signatureAltitude Restaurant - for its dramatic views andcuisine – and Café Mix for its diverse cuisine.Earlier, Shangri-La’s Blu Horizon Bar wasnamed by the Australian Hotels Association asAustralia’s Best Bar for 2007.In the Conde Nast awards, Shangri-La Hotel,Dubai, was named best hotel for service in theAfrica, Middle East and Indian Ocean region.CD meeting plannerHONG KONG – Shangri-La Hotels andResorts has launched an interactive CD planningtool in both English and Chinese for meetingplanners. The Signature Events CD detailsbenefits, destination attractions, meeting venues,floor plans and capacities and worldwidesales and reservations contacts for Shangri-La,and is available free-of-charge from anyShangri-La hotel sales and marketing departmentor regional sales office.25% off on JALMileage BankTOKYO – Japan Airlines will celebratetwo anniversaries of its JAL Mileage Bank frequentflyer programme in 2008 by offeringmembers mileage discounts of up to 25% onJAL international air tickets and up to 26.7% onJAL domestic routes. The discounts will applyfor international tickets booked online fromFebruary 1 for travel between April 1 and June30, 2008 and between December 1,2008 and February 28, 2009. Fordomestic tickets, discounts areavailable for travel during the sameperiods – excluding April 29-May 6and December 26, 2008 andJanuary 4, 2009. JAL launchedMileage Bank in the United States25 years ago, and introduced theprogramme to Japan 10 years later.www.jal.co.jp/en/newjmb2008/■ TOKYO – Japan Airlineswill introduce its JAL PremiumEconomy cabin on the Frankfurt –Tokyo (Narita) route from February3. JAL Premium Economy waslaunched on the airline’s daily flightbetween London and Tokyo onDecember 1, and will become availablein 2008 on US and Europe routes.JAL Premium Economy features the JAL SkyShell Seat, and offers 20 per cent more legroomthan economy class. Each seat comes with itsown power outlet for personal computers, and aseat tray that can accommodate a fully-openedA4-sized laptop. JAL Premium Economy passengerscan use dedicated check-in counters atNarita airport, and JAL Executive Class countersat overseas airports, and, prior to the departure,the JAL Sakura Lounge.Qantas lifts HKMELBOURNE – Qantas is to increaseservices between Melbourne and Hong Kongby three to 10 flights weekly from April 1.Qantas offers double daily flights to Hong Kongfrom Sydney, four from Brisbane and three from30 | ASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008BusinessTravelPerth. Qantas will also start two services weeklyfrom Melbourne to Shanghai from March 11,and will increase its Honolulu services fromthree to four weekly from April 5.Carlson buildingbrands in ChinaSINGAPORE – Carlson HotelsWorldwide – Asia Pacific is to build a newRadisson hotel in Liuzhou, the first of severalnew projects to bring Carlson hotel brands toChina’s second- and third-tier cities.The Radisson Hotel Liuzhou, scheduled toopen in February 2010, will be developed bythe Sunshine 100 Real Estate Group, one ofChina’s top property developers. Carlsonrecently announced a strategic partnershipwith Sunshine 100, designed to double thehotel group’s portfolio in China.Liuzhou is a large secondary city (population1.3 million) in China’s southern GuangxiZhuang Autonomous Region, 255 km from theprovincial capital Nanning. Other targettedcities include Tianjin, Chongqing, Shenyang,Yantai, Changsha, Nanning and Guilin.Carlson currently manages nine hotels inChina under the Regent, Radisson and ParkPlaza brands. A further five Carlson-managedhotels are under development.THAI global saleSYDNEY – Thai International is offeringspecial fares to more than 70 destinations acrossits international network. Bookings must bemade by February 29 for travel by June 22.Fares from Sydney/Melbourne/Brisbane toBangkok or Phuket start from AUD659 (plustaxes of AUD311). Other destinations (faresquoted are all plus taxes) includeVietnam/Singapore/Malaysia, from AUD798return; Hong Kong and China, from AUD824;Taiwan/Philippines, from AUD862; Middle Eastfrom AUS1,297; Johannesburg, from AUD1,132;Europe (choice of 12 cities) from AUD1,330; LosAngeles and New York, from AUD1,613.Stopovers in Bangkok through Royal OrchidHolidays start from AUD58 per personovernight (including accommodation, breakfastand transfers), with extra nights fromAUD23 per person (with breakfast).Korean Air set tolaunch Air KoreaSEOUL – Korean Air, South Korea's largestairline, is to launch a low-cost airline unit inMay, competing with other Asian budget carriersto lure passengers in the region. Tentativelynamed Air Korea, it will offer only short internationalroutes to Japan, Thailand and Malaysia.

THE OTHER SIDEIATA sees 2008downturn forworld aviationGENEVA – The International Air TransportAssociation (IATA) has sharply revised downwardits financial outlook for 2008 for the globalaviation industry to US$5.0 billion from a previouslyforecast US$7.8 billion.The spike in fuel prices is expected to addUS$14 billion to the industry fuel bill, driving itup to US$149 billion (based on an average priceof US$78 per barrel), while the broadeningimpact of the credit crunch is expected to slowrevenue growth to 4.7 per cent and trafficgrowth to 4.0 per cent. Simultaneously, capacityexpansion is expected to accelerate in 2008,with an increase in aircraft deliveries to 1,281(up from 1,041 in 2007).The outlook is unchanged for 2007 at US$5.6billion, IATA says. Higher oil prices (full-yearaverage forecast of US$73 per barrel) were offsetin 2007 by strong traffic growth (5.9 per cent forpassenger traffic) and even stronger revenuegrowth of 8.4 per cent.“For the first time since 2000, we are profitable.That is good news, representing a lot ofhard work by airlines. Since 2001, non-fuel unitcosts dropped 16 per cent, labour productivityis up 64 per cent, and sales and marketing unitcosts decreased 25 per cent. But with a 1.1 percent margin, the bottom line is still peanuts,”says Giovanni Bisignani, IATA’s DirectorGeneral and CEO. “The challenges get tougherin 2008. A favourable economic environmentand effective efficiency measures helped mitigatethe impact of high fuel prices and underpinnedprofitability improvements (in 2007).With the credit crunch, that is changing. Thepeak of the business cycle is over and we arestill US$190 billion in debt,” saidBisignani.HolidaysFEBRUARY – 4 Sri Lanka (National Day); 5 Pakistan(Kashmir Day); 6-8 South Korea (Lunar New Year); 7 Brunei,Laos (Chinese New Year); 7-9 China, Hong Kong, Indonesia,Macau, Malaysia, Singapore, Taiwan, Vietnam (Chinese NewYear); 8 Thailand (Chinese New Year); 11 Japan (NationalFoundation Day); 12 Myanmar (Union Day); 16 North Korea (KimJong-il’s Birthday); 20 Sri Lanka (Navam Full Moon Poya Day);21 Bangladesh (Shaheed Day), Thailand (Makha Bucha Day); 23Brunei (National Day); 25 Philippines (People Power Day); 28Taiwan (Peace Memorial Day).MARCH – 1 South Korea (Independence Movement Day); 2Myanmar (Peasants Day); 6 India, Sri Lanka (Maha SivarathriDay); 7 Indonesia (Bali) (Nyepi Day (Hindu Seclusion Day)); 8Laos (Women’s Day); 20 Bangladesh, Brunei, India, Indonesia,Malaysia, Pakistan, Sri Lanka (The Prophet’s Birthday), Japan(Vernal Equinox Day), Philippines (Maundy Thursday); 21Australia, Hong Kong, India, Indonesia, Macau, Philippines,Singapore, Sri Lanka (Good Friday), Myanmar (Tabaung FullMoon Day), Sri Lanka (Medin Full Moon Poya Day); 22 Laos(People’s Party Day); 23 Pakistan (Pakistan Day); 24 Australia,Hong Kong, India, Macau (Easter Monday); 26 Bangladesh(Independence Day); 27 Myanmar (Armed Forces Day); 31.India(Mahavir Jayanti).APRIL – 4 Hong Kong, Macau (Ching Ming Festival); 5 Taiwan(Tomb Sweeping Day); 6 Thailand (Chakri Memorial Day); 9Philippines (Bataan Day); 11-20 Myanmar (Thingyan-WaterFestival); 12 Sri Lanka (Day prior to Sinhala and Tamil New YearsDay); 13 Sri Lanka (Sinhala and Tamil New Years Day); 13-15Laos (Lao New Year), Thailand (Songkran (Thai New Year)); 14Bangladesh (Bengali New Year); 15 North Korea (Day of theSun/Kim II-sung’s Birthday); 19 Sri Lanka (Bak Full Moon PoyaDay); 25 Australia (ANZAC Day), North Korea (Foundation of thePeople’s Army); 29 Japan (Showa Day); 30 Vietnam (Liberationof Saigon).ADDRESSINGTHE BUSINESSISSUES THATMATTER . . .ASIA TODAY INTERNATIONAL MAGAZINEoffers a different perspective on Asia. We look forward,assessing issues with potential to impact on existingand future business. We draw views and perspectivesfrom Asia’s most influential business and governmentleaders - decision-makers and policy-makers. Weidentify emerging business opportunities.For 25 years now, ATI MAGAZINE has served executiveswith cross-border interests in Asia. Traders,investors, manufacturers, miners, accountants, architects,civil engineers, educators together with theirservice providers – in travel and hospitality, logisticsand supply chain management, information technology,consulting, planning . . .Last year we launched ATI MAGAZINE ONLINE tocomplement our daily online updates and a weeklysubscriber e-brief pointing to upcoming business events.Join our subscriber network today to qualify for a freeonline listing of the products and services you offer,giving you direct access to buyers in Asia –and the world. Subscribe online atwww.asiatodayinternational.com or emailadmin@asiatoday.com.au with your contact details.SUBSCRIBE TODAY!Address toASIA TODAY INTERNATIONALReply Paid 7, Grosvenor Place,NSW 1219 AUSTRALIA.Or fax (61 2) 9913-2003.Please enter my subscription toASIA TODAY INTERNATIONAL andASIA TODAY ONLINE for one year.I enclose a cheque/credit cardauthorisation for $250 (inc GST),or US$280 (airmail outside Australia).Bill me laterAm. Express Visa Mastercard DinersAccount number:Cardholder’s Name:Signature:Asia is our businessTitle: Mr Mrs MsName:_________________________________________________________________________________Company: ___________________________________Address: _______________________________________________________________________________Postcode: ___________________________________Email: _________________________________________________________________________________Expiry Date: /INTERNATIONALONLINEASIA TODAY INTERNATIONAL FEBRUARY/MARCH 2008 | 31

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