Sino-Singapore Tianjin Eco-city: A Model Sustainable City

Presentation for Australian Mission 1 March 2011

Jonathan LohSenior ManagerEconomic Promotion

Page 27th Aug. 09Presentation

Needs for Sustainable Development in China

Page 3

In 20 years, China's cities will have added 350 million people—more than the entire population of the United States today or 2 New York cities a year.

The country’s urban population will reach 926 million by 2025 and top 1 billion by 2030

As part of the global deal to tackle climate change, China has pledged to slash its greenhouse emission gases per unit of economic output by 40-45% by 2020

Urban solutions create new global businesses

Sustainable Urban Development is The Industry

Page 4

China by 2025:

• Build 900 to 1,100 gigawatts of power production capacity

• Pave five billion square meters of road• Lay 28,000 kilometers of commuter rail• Develop 20,000 to 50,000 skyscrapers

Growing urban demands for a better life

Sustainable Urban Development is The Industry

Page 57th Aug. 09Presentation

Sino-Singapore Tianjin Eco-City in the Making

Page 6

Tianjin Eco-City

• Agreement between Premier Wen Jiabao and Senior Minister Goh Chok Tong on 2nd flagship bilateral project after Suzhou Industrial Park

• Determination of both countries to respond to the needs of sustainable development

• Key focus is to be replicable, scalable, practicable

• Tianjin chosen as location

Total Land Area: ~ 30 sq km

Start-up Area: ~ 4 sq km

Target Population: 350,000

Estimated no of homes: 110,000

Resid GFA: 4.4 mil sqm Resid GFA:2.9 mil sqm

Flagship bilateral project between China & Singapore that draws on national resources

Page 7

Government Leadership and Commitment Eco-City has highest level of attention and involvement from both Govts

Joint Steering Council on Eco-City (Deputy Prime Minister Level)

Chaired by PRC Vice-Premier Wang Qishan and Singapore Deputy Prime Minister Wong Kan Seng

Joint Working Committee on Eco-City (Ministerial Level)

Chaired by PRC Minister for Housing and Urban-Rural Development and Singapore Minister for National Devt

Lead Ministries assigned to oversee Eco-City projectMinistry for Housing and Urban-Rural Devt (China) and Ministry of National Development (Singapore)

Strong Involvement of Local Governments and other Government agencies

• Tianjin Municipal Government• TBNA Government• Eco-City Administrative Committee

Page 8

Commercially Driven Approach

Singapore Consortium Chinese Consortium

Eco-City (JV)

China Development Bank

Tianjin TEDA Investment Holdings Co.

Investors

Keppel Group

Singbridge

50% 50%

Registered Capital: RMB 4bn

10%

35%

20%

45%

90%

Page 9

Bohai Rim Region – Citius, Altius, FortiusThird economic growth pole of China, economic center of Northern China

LiaoningBeijingTianjinHebeiShandong

Bohai Rim

Yangtze River Delta

Pearl River Delta

Page 10

Bohai Rim Region

Yangtze River Delta

Pearl River Delta

Areas covered Beijing, Tianjin, Hebei, Liaoning, Shandong

Shanghai, Zhejiang, Jiangsu

Guangzhou, Shenzhen, Zhuhai, Foshan, Jiangmen, Dongguan, Zhongshan, Huizhou, Zhaoqing

Population (million) 225.7 85.3 42.3

Land area (km2) 521,800 50,000 41,698

2009 GDP(RMB billion）

9,000 -10,000 7,179 3,210

Region GDP as a total percentage of China’s GDP

30%(Estimated to be over 30% in 2010)

21.4% 9.6%

Bohai Rim Region – Citius, Altius, Fortius Bohai Rim leading the way – First in pop size, land area and GDP

Page 11

• Total investment in fixed assets in TBNA increasing since 2005

• Growth rate of investment in TBNA has been higher than China and Tianjin since 2006

• Tianjin and TBNA’s GDP consistently above China’s average

TBNA and Tianjin outperform ChinaTianjin & TBNA – the Heart of Bohai

Average annual GDP growth from 2000 – 2010

China: 9.9%Tianjin: 14.7% TBNA: 20.9%

Page 12

Economic Center of the Bohai

sea region, an international port city , the economic centre of North of China

Tianjin achieve 17.4% growth

rate in 2010

Home to Tianjin Binhai New

Area (TBNA)• One of the districts with highest profit margin for overseas investors in China• TBNA achieved 25.1% growth rate in 2010

Tianjin’s vibrant economy

Sino‐Singapore Tianjin Eco‐City

Choosing the Right Site to Pioneer Eco-City Development

Page 13

Choosing the Right Site to Pioneer Eco-City Development

Beijing北京

Beijing-Tianjin Highway

京津高速

Beijing-Tianjin-Tanggu Highway

京津塘高速Coastal Highway

海滨大道

Centra

l Bou

levar

d

中央大道

Jinhan semi- expressway津汉快速

Tang

han

Road

塘汉公路

Hanbei Road汉北公路Tianjin

Binhai New Area

Coastal Resort

Hangu

Eco-city

Train travel in China redefined at 350 km/hr

Page 14

Choosing the Right Site to Pioneer Eco-City DevelopmentTo Date, more than 200 projects established by over 120 Fortune 500 Companies In TBNA

Page 15

Master Plan sets out the land uses for the various land parcels.

Eco CityLand Area 30 sq kmResid GFA 14.4 mil sqmPopulation 350,000

Startup Area (SUA)Land Area 4 sq kmResid GFA 2.9 mil sqmPopulation 85,000

SUA to be completed in 3-5 yrs, the rest in 10-15 yrs.

Master Plan

Page 16

Development Roles of SSTEC

Eco City Builder

Development of Road and Main Water Pipes Infrastructure

Development of Business Park

Development of Public Housing

Development of Commercial & Residential projects

Page 17

3. 100% potable tap water20. 50% non-traditional resource

7. 100% green building

6. Zero loss of natural wetland9. Green space >12m2 per capita8. Local plant index >0.7

18. >20% public housing provision22. >50% employment housing equilibrium index

1. Ambient air quality to meet Grade II > 310 d /yr4. Noise pollution 100% meet respective functional area standard

11. Domestic waste generation <0.8kg/d 15. 100% non-hazardous treatment13. >60% overall recycling rate

5. <150ton-C/mil US$ GDP

19. >20% renewable energy use

16. 100% barrier free accessibility 14. Free recreational/sports facilities within walking distance of 500m

12. >30% green trips by 2013- >90% green trips by 2020

Tianjin Eco-city’s KPIs

21. >50nos researches/ engineers per 10000 labor force

17. 100% coverage

2. Meet Grade IV standard

10. <120L/d per capita

Page 187th Aug. 09Presentation

Development Update

Page 19

Chinese Consortium

Singapore Consortium

TECID

Developing a place call homeInternationally renowned developers secured in the last 2 years have invested a total of about RMB 55 billion

Page 20

LOHAS

Waterfront lifestyle

Eco-CBD

Eco-lifestyle museumQing Tuo Zi – Entertainment hub of SUA

Water-based activities

Residential & Commercial DevelopmentThe best ideas coming online

Page 21

Eco Public Housing

• Focus on energy efficiency – 100% green buildings (1 star or LEED entry level

• A living environment that fosters community spirit and social harmony

• Surbana as master-planner to bring in Singapore experience

1st Phase: 500 units (PH) & 223 units (RH)

First of its kind green public housing

Page 22

GEMS World Academy at Plot 2

Construction start in 1H 2010

Planned total student population: 2190

Provide for N-Yr 13, (i.e. age group 4yrs- 19yrs old, Kinder, Elementary, High School and 6th Form)

Target to achieve GBES Silver Award

GEMS International SchoolCommunity Development

Page 23

Sanctuary for the Elderly • Land Area – 5.9 ha

• Plot Ratio – 1.6

• Residential GFA – 54,400sqm

• Residential Land Area – 3.4ha

• Hospital GFA – 35,000sqm

• Hospital Land Area - 2.5ha

Community DevelopmentElderly Apartments and Hospital at Plot 12b

Page 24

World Class University CampusIntention: To set up a modern and forward looking world class university campus to supply quality pool of graduates and professionals for Eco-CBD, Eco-city and the region

Planning considerations: Committed to engage and tackle the environmental issues of our times by developing strengths in green technology, eco-financing, planning and designing, R&D.

Page 25

Existing Nankai Campus in Tianjin• Located at Nankai Fourth Road• Occupies some 7.67 ha of land, GFA of 49,000 sqm• Comprises a High School and an International School Dept• Total enrolment of about 2,000 students with more than 140 teachers for various grades• Nankai School is recognized as the best middle school in Tianjin.

Site

Nankai Branch School in Eco-City

Page 267th Aug. 09Presentation

Economic Positioning and Key Economic Development Platforms

Page 27

Our Targeted Industry Clusters

EconomicClusters

EconomicClusters

LOHAS

Clean Energy

Clean WaterGreenBuildings

Green Transport

Waste & EnvtManagement

• Eco Built: The business parks and industrial park will be built to showcase key eco technologies and a good benchmark will be one-north project

• Eco & Urban Solutions: Clean Energy, Water & Wastewater, Solid Waste Treatment, Green Buildings & Green Transport

• Eco-friendly Hi-tech Industries: Supplementary eco-friendly services & industries such as Software Development & IT Industry – Animation, Gaming, Web Design, ITO, BPO

Page 28

ECO-CITY OVERALL INDUSTRIAL

CLUSTER DISTRIBUTION

生态城总体产业集群分布

Eco Industrial Park (Mfg for eco- industries)

• Prototype production• Final assembly• Logistics

生态硅谷

生态产业园

（地块一）

Eco Business Park(R&D for eco-industries)

• Clean energy• Green building• Green transport• IT/BPO

National Animation Centre• ICT• IDM• Media School

Page 29

Industrial Clusters• Green Building• Clean Energy• Green Transport• Clean Water• Waste Management• Environment Management• Logistics• Warehousing• Distribution Center

-GBES certified buildings, eco- inspired surroundings conducive for boosting productivity- Full spectrum of greenfield, ready-built, customized building solutions-High quality factory & logistics spaces with practical and optimized designs and layouts-Modern neighborhood amenities and workers’ dormitories

Eco-Industrial ParkEconomic Development

Page 30

• Plug-and-Play solutions• GBES certified• Energy-, water-, lighting-efficient buildings• Modular buildings with individual character and flexibility• Adoption of Eco-Technologies and >5% renewable energy consumption• Completion mid-2011

Ready-Built FactoryEconomic Development

Page 31

- Unique integrated environment with an eco-inspired ambience- Conducive for R&D, IT professionals and creative talent-Work-Play elements, balanced community lifestyle-Ecologically sustainable green design features and LEED SilverCertification

Eco-Business Park

Clusters• Research & Development• Innovation & Incubation • Testing & Certification• BPO/ITO• Regional Headquarters• Data Centers• Software Development• Training and Education• Multi-media or Animation• Other high-value supporting services

Economic Development

运通嘉华(北京)

投资有限公司SITO Jia Hua 

(Beijing) 

Investment Co., 

Ltd

Page 32

•Pre-built modular spaces - provide ease and flexibility to companies seeking fast start-ups solutions• Unique green building features with artistic and exuberant composition• Inspiring working environment conducive to research and knowledge-intensive activities• Lushly landscaped grounds and integration of a wide range of retail and recreational amenities

Ready-Built OfficesEconomic Development

Page 33

National Animation Park

Largest animation park in ChinaTotal land area :1 sq kmGFA 770,000 sqmPhase 1 construction to be

completed by 4Q 2010

Economic Development

Page 347th Aug. 09Presentation

Latest Investment Update

Page 35

Investments in Business & Industrial Parks

Page 36

Key Investors and PartnersInternational and Chinese companies onboard the Eco-City with about RMB 2.75 billion in investments

运通嘉华(北京)投资有限

公司SITO Jia Hua (Beijing) 

Investment Co., Ltd

Page 37

Strategic Partnerships in the Eco-City

•Supply of LED lights and consumer products, test bedding of new eco-solutions, and technology road-mapping for the Eco-City

•Collaborate in Home Energy Management Systems (HEMS), Building Energy Management System (BEMS), EV Charging Infrastructure, Community Energy Management Systems (CEMS), Smart Grid.

Economic Development

Page 38

STSE DBOO of PWCS in EBPSTK EV buses co-sponsor for Eco-City

EV bus demonstrationTesting & certification of EV

STEE Future School for GEMS International SchoolSolutions for Skills and Training Development Centre by PSBEco maintenanceCar parking system/ITS and district security for EBPDigital City and Future School for public schools

Strategic Partnerships in the Eco-CityEconomic Development

•Keppel District Cooling & Heating System (DHCS) for commercial supply of DHCS in Eco Business Park•To collaborate in establishment of Tianjin Eco-City Sustainable Development Innovation Centre (TSDIC) in Landmark Building 2 of the EBP

Page 39

New Energy Vehicle Alliance (NewEV) launched on 27 Sept 2010

• Comprises leading international and local players from EV value chain, supporting industries, and ancillary service providers.

Drive early adoption of electric vehicles

Page 40

Technology & solutions providers

Auto companies Charging solutions

Users

Putting together leading international and local players across the EV value chain

Drive early adoption of electric vehicles

Page 41

• Develop sustainable new energy vehicles eco-system in the Eco- City. a. Use of Hybrid-Electric and Electric Vehicles (EV)b. EV charging infrastructurec. EV management systemsd. EV Hub and retail malle. and other EV-related ancillary services.

• Work with SSTEC to develop and implement a large scale demonstration of a world class EV transport system within our 30 square kilometres and the surrounding areas.

NewEV Alliance’s objectivesDrive early adoption of electric vehicles

Page 42

Subsidies programme

Free parking in public car park

Discount Discount

Sales of new energy vehicles in conjunction with eco-homes to promote the purchase of new energy vehicles

Drive early adoption of electric vehicles

Page 43

Smart Grid Pilot in Tianjin Eco City

State Grid plans to develop its first and most comprehensive smart grid system in Tianjin Eco- City.

• Initial EV charging infrastructure: 2 fast charge stations and 40 charging points in start-up area of 4 sq km.

• Develop Home Energy Management System in Eco-City.

Planned infrastructure in Eco-City under the 12th 5 year plan.

3 large charging stations

150 charging

points

3 mid-size charging stations

Page 44

Smart Grid Demonstration Project in Eco-CityDeveloping extensive EV charging stations , points and battery swapping stations

Page 45

Eco-CBD Alliance

•Hitachi•Siemens•Philips•ST Engineering•Far Glory•Ayalaland

Page 46

4 layers of living

10 key ideas1, Economic Positioning 2, Bring in the Green 4, Control the cars3, Walkability

5. Alternative transport systems

6. Subterranean retail

7. Green Offices

8. Work, Live, Play

9. Eco-work life

10. Eco-CBD CertEco-CBD

Page 47

Conventional CBDs Eco-city CBD

Compact, but bigger in size e.g. Perth CBD (180 ha), Sydney CBD (370 ha)

Small in size (44 ha)

Tall buildings and sometimes iconic

Iconic buildings that are green and small in footprints

Lack of activities at night Bustling CBD at night

Park in the CBD CBD in the park Mainly business and finance activities

Also green knowledge generator, in addition to business, finance activities

Mostly associated with work Work, live and play

High traffic High but smooth traffic

Conventional top CBDs vs Eco-city CBD- Changing paradigms

Page 487th Aug. 09Presentation

Participating in the Eco City’s Development

Page 49

Why participate? ~Why invest in Eco City

• Top-level Government Support• Major G2G project – 25K visitors in 2009• Visits by top leaders

• Opportunities in TBNA• Key engine of growth in Bohai region~25% GDP growth in 2010• Latest Pilot Reform Zone

• Eco Solutions Market• “Must Have” vs “Good to Have”• Sectors: Clean Energy, Green Buildings, Green Transport, Water & Envt• Geography: Participate in Tianjin and later beyond

• Government Incentives• Only PRC city with voluntary foreign exchange settlement policy• Personal Income Tax Rebates up to 100% • Favourable Tax Incentives & Land Prices• Special funds to support R&D, animation and high-tech start-ups • Subsidies for rental and purchase

Page 50

Who should participate? ~Who are we attracting to Eco City

• Eco & Urban Technology Solution Providers: • Clean Energy – Solar, Wind, Geothermal • Water & Environment• Green & Intelligent Buildings/Homes• Green Transport – EV, HEV

• Outsourcing & Animation• Education & Training• Biz & Professional Svc Providers• Retail and F&B• Etc.

Page 51

How to participate? ~Collaboration Modes

Today’s Solutions• Supply Solutions: Provide Eco Solutions & Products to Eco City

projects• Manufacturing: Use Eco City as Green Manufacturing Hub• Service Operations: JV or DBOO to provide services in Eco City

Tomorrow’s Solutions• R&D and Incubation of Tomorrow’s Eco Solutions• Test-bedding & Development of new products and solutions

Page 52

Attractive Hub for Regional PartnershipsBroad scope for participation Development

R&D and testbedding

Government and policy- makers

Industries

Page 537th Aug. 09Presentation

For more info, please go to

www.tianjineco-city.com

Page 547th Aug. 09Presentation

Local Chinese Government Incentives(ECAC – Eco City Administrative Committee)

Page 55

新加坡企业投资优惠政策INVESTMENT INCENTIVES

新加 坡

投资 者

新加 坡

投资 者

Tailor-made investment solutions for each individual investor.为每个投资者定制投资解方案

Page 56

“意愿结汇”试点FLEXIBLE FOREX SETTLEMENT

Effective from 1 January 2010, the Eco-city becomes the first and only region in China to enjoy the voluntary forex settlement policy. It enables Singapore investors in avoid financial losses from fluctuating exchange rates.

2010年1月1日起，生态城成为国家外汇管理局外汇资本金“意愿结汇”政策的 唯一试点。此政策有利于使投资者规避汇率波动损失。

Page 57

财政税收扶持TAX REBATE SCHEMES

Singapore Investors in…

Culture & creativity 文化创意Software development 软件开发Finance & RHQ 金融与地区总部Environment-related R&D 环保研

发

1 2 3 4 5

2+3 Tax Rebate on Local portion (40%)of Corporate Income Tax企业所得税地方留成“两免三减半”

2+3 Tax Rebate on Local portion (40%)of Corporate Income Tax企业所得税地方留成“两免三减半”

100% 50%

Page 58

财政税收扶持TAX REBATE SCHEMES

In addition , for larger companies whose Registered capital over 10 million CNY 注册资本达到1000万人民币Annual sales over 100 million CNY年销售额超过1亿元人民币

Tax Incentives can be further extended to Business Tax & VAT营业税、增值税可进一步减免优惠

Tax Incentives can be further extended to Business Tax & VAT营业税、增值税可进一步减免优惠

Page 59

运营补贴OPERATIONAL SUBSIDY

Start-up rental subsidy granted to Singapore investors. Max amount of subsidy up to 80% of the total.为新加坡投资者在生态城租用的办公、生产用房，在运营初期提供租

金补贴,最高补贴额度为房租的80%。

The amount of subsidy is to be calculated according to the timing of move-in, number of employees ,etc.补贴金额将根据入住时间、入驻员工数量等因素商定。

Page 60

人力资源支持HUMAN RESOURCES SUPPORT

Employees of Singapore-invested companies have priority in applying for the public housing units in the Eco-city.新加坡投资企业的员工将可优先享受政府公屋的申请权

By end of 2015, employees of Singapore-invested companies entitled to rebate on the local portion(40%) of Individual Income Tax provided they have purchased commercial residential properties in the Eco-city.2015年12月31日之前，在生态城内购买商品房的新加坡企业员工，享受个

人所得税地方留成部分(40%)的全额返还奖励。

Page 61

典型投资政策方案: 新加坡游戏软件公司

TYPICAL PACKAGE： Singapore Game Software Developer

Eligibility享受优惠政策标准

- Registered Capital over 10 million CNY注册资本大于1000万元人民币

-Annual sales revenue over 50 million CNY年销售额超过5000万元人民币

Incentive Package优惠政策方案

•2+3 rebate on local portion of Corporate Income Tax企业所得税地方留成两免三减半

•5-year rebate of 50%of the local portion of Business Tax &VAT 营业税、增值税地方留成部分五年减半

•50% -80%of subsidy office rental50% -80% 办公室租金补贴*Move in by end of 2011 2011年底前入住

Page 62

典型投资政策方案: 新加坡银行

TYPICAL PACKAGE： Singapore Bank

Eligibility享受优惠政策标准

Tianjin Branch 在生态城设立天津分行

Incentive Package优惠政策方案

•5-Year 50% rebate on Business Tax & VAT营业税、增值税地方留成五年50%返还•2+3 Tax rebate on local portion of Corporate Income Tax企业所得税地方留成两免三减半

China Headquarter 在生态城设立全国总部

•5-Year 75% rebate on Business Tax & VAT营业税、增值税地方留成五年75%返还•5-Year 100% rebate on local portion of Corporate Income Tax企业所得税地方留成五年全部返还