No.22012

Working with KaiboWe endeavour to work with all stages of the construction

project providing world class management, consulting services, and project management.

We also provide training sessions to help your company achieve the best results in dealing with Chinese enterprises.

Address: B1502, Vantone Center, Chaoyang District, Beijing (100020) Telephone:(+86)10-59073235 Email: info@kaibogroup.com Web: www.kaibogroup.com

Intro / 01 Company News / 02 Industry News / 03 Ar t ic les / 04 Events / 06

2012 has started in great style for Kaibo Group with the annual awards night held on the 12th of January in Beijing. During the course of the event we had video feeds from our projects in Sudan, Nigeria, and Mongolia.Kaibo Group would like to congratulate all the award winners for their hard efforts during 2011 and we all look forward to sharing their success with you this year. As we are all well into 2012 the year shapes to be a year full of events and major news that will hit the construction industry. Looking into the European crisis and how it affects the overall global construction industry and the steadying of the Chinese economy and how this will play out through the year.

2012 has started in great style for Kaibo Group with the annual awards night held on the 12th of January in Beijing

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INTRO Company News Industry News Articles Events

1. Project background:In the past five years, Mongolia has undergone rapid urbanization development. A large number of the population migrate to Ulaanbaatar, causing the living area per capita to be less than 7 square meters. To satisfy the growing needs Mongolia have implemented a modern city plan for Ulaanbaatar to build 100,000 new homes. This development will provide a higher quality standard of living for residents and bring new facilities to the residential area. Yarmag has been created on the outskirts of the Mongolian capital.

2. Project target and significance:The Mongolian government planning of the new city is located in Ulaanbaatar Yarmag Khan-Uul district, covering 970.0 hectares in the Khan-Uul area. The target for Yarmag is planning to build 36000 sets of residential and supporting public facilities, for local residents to create a comfortable living and working environment.

3. Project implementation plan:This project implementation plan is project of 15000 sets and supporting facilities including highways, commercial facilities, schools, hospitals, water supply, power supply and supporting infrastructure. A new professional training center and a National Science Research Center (medical) will also be built in Yarmag composing of 250 hectares of land. The estimated costs for this stage project are

Mongolia Project

The Sudan team have been involved in control network survey, including leveling, has been done, and data is being processed, the topographical survey will be carried out in no time. The laboratory report for geo investigations on link canal has been submitted; and lab tests of samples from offshore drilling is being executed in accordance with the program issued by the Engineer. Construction of the contractor’s main camp is well under way.

A two-round negotiation has been held with the Employer in January, and the re-priced BOQ and related suggestions to the original contract and specifications have been submitted and are under evaluation by the employer and engineers. The design of conceptual design for pump stations, shop drawings for canal works and relevant structures are in preparation. Tendering for DIU’s Township will start upon the approval of the drawings.

Progress of Sudan Project

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Mongolia Project Site Sudan Project Site

$1.53 billion dollars.

4. Current status:Currently the project design works team and Kaibo are working together on the completion of the master plan and scheme design. Work will commence shortly on the construction design work. In addition after the employer modified some of the scope of the contract terms Kaibo is assisting during this phase to the employer.

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Intro COMPANY NEWS Industry News Articles Events

31st of Jan: China Guangdong Nuclear Power Corporation (CGNPC) CGNPC, is bidding alongside the China-Africa Development Fund in its effort to boost access to uranium supplies, wants to buy Kalahari for its 42.7 percent interest in Extract Resources, which owns the giant Husab uranium project in Namibia. 15th of Feb: GCL-Poly Energy Holdings of China will start 1 gigawatt of solar power projects in the U.S. funded by Bank of America Merrill Lynch or BofA Merrill.

Jan 15th: Mazaya Qatar Real Estate Development Company said on Saturday it has awarded a $130m construction contract to China's Sinohydro. The agreement will see the Chinese company construct the Sidra Village project and deliver it in 20 months. Sidra Village consists of 1,165 residential units, including 658 one bedroom apartments and 507 two bedroom apartments, Mazaya Qatar said in a statement.

Feb 16th: China Railway Construction Corp. furthered its strategic expansion into Africa by winning new contracts totaling 9.1 billion Yuan. In an exchange filing on February 15, China Railway Construction said the contracts, secured by its subsidiary, China Civil Engineering Construction Corp., include the construction of expressways in Nigeria and a railway project connecting Djibouti and Ethiopia.

6th Feb: China pledged to invest over USD 161bn in metro projects for 28 cities. As of November, some 12 cities in the country had metro networks. The plan announced by the China's Communications and Transport Association last month would see a total network 250 times the length of the London Underground Circle Line. Over 90 new lines were approved.

Chinese Construction News:

20th Feb: The European Bank for Reconstruction and Development (EBRD) has granted a loan of €28.5 ($37.48 million) for the construction of roads in Bosnia-Herzegovina. The loan amount will be used to finance the construction of a new, two-lane bypass around the centre of Brcko town, in the north-eastern part of the country. The total length of the new bypass will be 19km.

20th Feb: New York state transportation officials and industry participants are scrambling to meet Gov. Andrew Cuomo's push to have work under way later this year on the $5-billion-plus replacement of the aging Tappan Zee Bridge. Four design-build teams shortlisted on Feb. 7 have yet to see a final request for proposals but have only until about mid-June to submit their detailed design and building plans, says a state transportation agency spokesman.

3rd Feb: The $200million USD Ngong Wind Power Plant has been given the green light to go ahead by project owner General Electric. This project will start in Q1 of 2012 with an estimated time of completion by Q4 of 2012.

17th Feb: US-based real estate Company Related California has broken ground on The Village at Santa Monica, a $350 million mixed-use scheme in the US state of California.

The Village at Santa Monica will be developed at Ocean Avenue in close proximity to Santa Monica beach. The scheme involves construction of 318 luxury condominiums and affordable rental apartments, 20,000 square feet of retail and restaurants, and walkable plazas and gardens.

20th Feb: The Peruvian government has announced that a concession will be awarded to construct $2 billion Lima Metro's second line. The new metro line will link the Callao to the west of Lima with Ate Vitarte to the east. The contract will include expanding the network by more than 30km.

World Construction News:

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Intro Company News INDUSTRY NEWS Articles Events

Worldwide, the construction sector is becoming like a canary in the mines, an indicator of each country’s economy, according to a report by global credit risk agency Coface.“The construction sector was badly hit by the 2009 crisis, and a large number of payment incidents were still occurring in 2011,” according to Coface’s analysis. “The intensity of activity in the construction sector varies according to the impact of the crisis on the economy of the concerned country and according to sensitivity to economic conditions that varies from one subsector to another.”Coface’s Global Construction: Substantial Geographic Differences, High Sensitivity to Economic conditions, Permanent Credit Risk report shows that activity is strong in emerging markets, particularly subsectors such as public works and private and institutional non-residential construction. Conversely, activity in developed markets is either moderate or stagnant, with particularly large disparities in the residential construction sector.Unfortunately the uneven fortunes of the industry poses a credit risk, particularly in stagnant economies in parts of Europe, where activity will depend on forthcoming austerity plans. Defaults and payment incidents have risen in Ireland, Iceland, Spain, Denmark, the Netherlands, Greece and Central Europe and high prices have started to affect the more robust economies of the UK, France, Belgium and Italy. Other countries, such as Germany, Austria, Norway, Sweden, Finland and Poland, however, remain somewhat untouched.Conversely, construction in the Asia-Pacific zone is “relatively buoyant”, particularly in Australia, Japan and New Zealand where reconstruction efforts, following respective natural disasters in 2011, are taking place.The building boom continues in China, however, even after the government restricted bank loans for the property market to avoid inflation. “The drop in sales, price adjustments and increased stock levels are expected to slightly slow the activity in the private residential segment, but this will be partly offset by the launch of a new public social housing construction program,” according to Coface.The effect of the China boom has seen a number of world-class players emerge

Construction poses biggest credit risk worldwide

Organisations are becoming leaner—reducing waste, trimming budgets and heightening efficiencies—in a bid to cope with global economic stress. Global training organisation ESI International set out to discover how public and private leaders were adapting their human capital initiatives to this lean environment via a survey. Below is an overview of the results.Lean workforce: According to respondents, the recession has forever changed the makeup of their employee base. Commercial and government organisations now operate with a lean workforce, where employees, regardless of level, must have the capability to lead and execute work across cross-functional teams.New approaches to learning: Best-in-class organisations expect to continue their investments in innovative, multi-modal learning, but will also devote further resources towards the development of leadership skills and business capabilities within communities of technical professionals.Further, survey respondents reported that targeted and highly-relevant learning programs are essential to support the achievement of organisational priorities, maximise resources and enhance workforce effectiveness.Measurable impact: To invest in their people, companies are focusing their training dollars on programs that produce measurable results and lead to demonstrated business improvement.The ability to transfer learning in the classroom to changed performance in the workplace is essential in the achievement of enhanced productivity. Organisations must develop a supportive and complementary on-the-job environment, where management, business processes and supporting tools all permit the learner to apply new knowledge and skills immediately upon return to work.

Project management education in a lean environment

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from the construction industry, as well as related sectors such as producers of raw materials and machinery manufacturers. These players are reaching out to other emerging regions in Africa and the Middle East, which may spur growth in those areas.( Article written by Adeline Theo – www.projectmanager.com.au )

Intro Company News Industry News ARTICLES Events

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Project management is moving through Asia with the speed and tenacity of a raging bushfire. I have recently been working my way through Singapore, Hong Kong and Mainland China talking with organizations from several different industries about their PMOs and their attitudes towards project management in general. The vibe as I moved through Asia was electrifying. There is an excitement about this ‘new way of working’ that is inspiring even to the most embattled veterans of the well established projects as a way of doing business set of the West.Project management emerged in the West through traditional industries such as engineering and construction, defense and aerospace, before being taken up by the non-traditional industries such as IT, banking and finance, telecommunications and pharmaceuticals. This historical progression followed a slow path of development from the project level processes of planning and estimating, followed by control processes and on to risk management.Now as we feel confident that we understand the basics, even if we don’t always implement them to perfection, we’ve turned our attention to developing the concepts of program and portfolio management. The realization that project management is the enabling capability for organizations to execute on strategy has led us to develop methods and tools for devolving corporate strategies into program and projects, as well as balancing the portfolio to meet the demands of a rapidly changing economic, social and political landscape. As a capstone to this thinking and development, we have created the concept of the PMO, be that project, program, project management or portfolio management office.In contrast, many Asian PMOs have taken an almost opposite approach to developing organizational project management capability by establishing an integrated network of PMOs united at the corporate level by a single enterprise PMO. This corporate level PMO manages a network of smaller PMOs predominantly established at the country level rather than being organized by function or project.In the main, Asian PMOs have opted for a top-down approach and have developed their portfolio management capability first, followed by an understanding of

PMOs in Asia: The New Frontier

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program management and project management governance with project governance and process left until last. This approach has left many organizations with an obvious gap in capability at the delivery level, with limited processes and support available at the coalface of projects. The solution? Buy in expertise.Asia has historically used expatriate labor, bringing in expertise that did not already exist. They are doing so with project management by bringing in star performers who can carry a project at the delivery level on the back of their own expertise. This solution is not sustainable long term, however it is buying them enough time to develop their own capability, which can then be institutionalized to allow for homegrown project managers to be developed and supported.One of the key benefits of the top-down approach is that project management emerges within an organization with an intrinsic link to the top-level management and is positioned as a means of delivering on corporate strategy. This sense of value has many Asian organizations in an enviable position where management ‘gets it’ and they will hopefully avoid the all too familiar rollercoaster ride that PMOs in the West experience when project management comes in and out of favor with the latest wave of restructuring.The role of the PMO at the enterprise level must include demonstrating the value of not only the PMO but project management more broadly to the organization. In this area, Asia will lead the way!( Article Written by: Alicia Aitken “Alicia Aitken is CEO at Human Systems International and managing director at Project Performance Group” )

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Intro Company News Industry News ARTICLES Events

There’s a lot to be said of timing it right. In fields like comedy, music and sport, timing is of the essence and can be the difference between a well-told joke and a flop.Time is one side of the so-called project management ‘iron triangle’ by which the success of a project is superficially measured. Cost and quality complete the trio. It’s interesting to see time elevated to the same level as the other constraints when it is the most predictable but the least manageable of the three.

Most predictable? Well, time as a human construct has 60 seconds in a minute, 60 minutes in an hour, 24 hours in a day for the length of the project until such time as you’ve forgotten what day it is—or how old your kids are. And try as you might, no matter how organized or how productive you are, a day will always have 24 hours in it, which makes it the least manageable of the three constraints.Culturally too, you will see that there is a broad scale of attitudes towards the importance of managing time that centres on adherence to schedules and deadlines.In Managing Across Cultures*, a book I highly recommend if you work with international stakeholders, the authors put Germans on one end as they are generally strict about punctuality and have a preference for projects to run like clockwork. On the other end are Thais, who view time as an element that cannot be controlled and therefore treat schedules as a guide that serves people rather than the other way around.At the risk of fence-sitting, I don’t think either attitude is completely right or completely wrong. Deadlines serve a purpose and if we were lax with them we’d have no Olympic Games, New Year’s fireworks or events of any kind. But the Thai view that schedules serve people is also a key one; good project management is more than the iron triangle.The most inclusive view is to treat project schedules as living documents. You can

Time: the bright side of the iron triangle

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distort concepts of time to suit your other resources, but time itself will march on. This means what the iron triangle really measures is not time, cost and quality but the ability of your project schedule, budget and scope to meet the expectations you set at the start.An interesting take on this is Pat Weaver’s recent article, the truth about Gantt charts. Think you know what a Gantt chart is? Think again. Henry Gantt was a smart guy, but he didn’t invent the bar chart that bears his name. He did, however, work out a way to track progress and therefore give a better understanding of how long things took to get done. Which is good information if you want to look into estimation and productivity?So don’t look at time as something you can control; it’s only your own timing you have the power to alter.

April 11th – U.S.A, New York, ENR Global Construction Summit

April 24-25 – Macau, China, 3rd International Infrastructure Investment & Construction Forum

May 7-9 – France, Marseille, PMI Global Congress Europe

May 21-23 – Hong Kong, China, Brazil Invest 2012

July 15th – Pakistan Karachi, PMI Project Management Symposium

October 20-23 – Canada, Vancouver, PMI Global Congress North America

October 29-31 – Greece, Crete, 26th IPMA World Congress

Events

Intro Company News Industry News ARTICLES EVENTS

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Address: B1502, Vantone Center, Chaoyang District, Beijing (100020)

Telephone:(+86)10-59073235

Email: info@kaibogroup.com

Web: www.kaibogroup.com