CHINA

ASIA PACIFIC
EUROPE
AFRICA
UNITED STATES
CARIBBEAN

BUILDING NEW WORLDS

The Global Leader in Special Economic Zones

SPECIAL ECONOMIC ZONES DEFINED
Building Fourndations for Economic Growth and Opportunity
 THE ISLAMIC REPUBLIC OF AFGHANISTAN & THE CHORD GROUP

Chord's Current Project: Conversion of military bases into Special Economic Zones
Strategic implementation meeting with President Ghani of Afghanistan, November 2015

INTRODUCTION
500
“You can measure the opportunity with the Talented and
same yardstick that measures the risk involved. 22 Offices Experienced Professionals
They go together.”
EARL NIGHTINGALE

Over the last two decades, the Chord Group has helped
governments around the world attract foreign direct
investment, stimulate economic growth, and create
knowledge based jobs by developing, marketing and
managing “best-of-breed” special economic zones (SEZ).
We help nations build wealth through a full range of
strategic, operational and technological solutions. Our
proven model for OECD and WTO complaint zone
development and deployment has always achieved
positive and sustainable commercial results for our
clients. We work within the worldwide knowledge
economy, operating as “Innovators and Accelerators,”
focused on creating zones that promote free trade flow,
based around mutually dependent and complementary
industry clusters.
make the Chord Group one the world's
leading experts in special economic zones
Our long-standing relationships with relevant
government entities and leading service providers
allow the Chord Group to expedite projects. We
keep abreast of international best practices and
adapt them to local market conditions. We establish
the policies, investment structure, legal framework,
strategic development, sales and marketing
strategies, operational management, and ongoing
strategic road map to deliver and operate successful
zones.

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 WHAT IS A
SPECIAL ECONOMIC ZONE?
A special economic zone (SEZ) is generally defined as:
“a designated geographical area where
unrestricted activities of industry,
commerce, trade and construction take
place, and where the unrestricted flow
of goods and services is permitted
to the rest of the world.”
Usually, SEZs are territorial enclaves which are
outside a country’s customs zone. In the past 30
years the terminology used to describe what has
traditionally been called a “SEZ” has evolved
significantly. Some of the more important types of
SEZs include the, free zone, free trade zone, the
free port and the export processing zone.
A free trade zone (FTZ) is a defined geographic
area where the unrestricted flow of trade is
permitted. The area can be anywhere within a
country. Items that are imported and then exported
within the free trade zone are free from customs
duties. Typical activities in this zone include
transshipment of goods, storage of goods in
warehouses, packaging of bulk items into smaller or
individual packages, inspection of components, and
regional cargo distribution centers.
A free port is SEZ specifically linked to a seaport
or airport. Free ports were created to ease
governmental restrictions so that goods can flow
freely. free ports allow the import and export of goods
free of duty and sometimes taxes, and provide
enterprises with financial, tax, investment, and
regulatory incentives. banking, trade barriers, and
employment rules are relaxed within the boundaries
of a free port. Some free ports have recently
added multi-modal cargo transfer to land
transportation systems as a new service option.
An export processing zone (EPZ) is defined
as an area in which foreign firms, benefiting
from special incentives and privileges produce
goods for export. They are often industrial estates
offering customs privileges and financial incentives
to attract foreign investment in export-oriented
manufacturing enterprises.
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Typical SEZ incentives are:
• Foreign ownership of firms operating within the zone.
• Duty free or reduced duty import of capital equipment.
• Duty free or reduced duty import of raw materials.
• Duty free or reduced duty export of goods processed-
within the SEZ to areas outside the customs zone.
• Free flow of currency.
• Full repatriation of profits.
• Fixed-term income tax holiday of company profits
within the free zone.
In 1989, there were over 200 export processing zones in
operation worldwide, according to the International Labor
Office. By 2006, there were 3,500 which employed more
than 66 million people. Although there are successful
examples of export processing zones on most continents,
EPZs have proven to be most successful in the newly
industrialized countries of Asia.
WHY CREATE
A SPECIAL ECONOMIC ZONE?
There are two goals behind the development of an SEZ:
• Generate economic growth.
• Integrate the regional economy with the global
economy.
An SEZ acts to stimulate growth, because the capital,
technology and resources introduced into the zone create
new job opportunities for local workers and business
opportunities for local companies to sell goods to
enterprises within the zone. Most often, the activity is
driven by foreign direct investment (FDI).
The SEZ integrates the region with the global economy by
creating goods for export, attracting foreign currency, and
providing opportunities for companies outside the zone to
trade with international firms.
Free zones are developed to take advantage of a country’s
comparative advantage in natural resources, existing
infrastructure, or labor.
“The entire country must support the development
and operation of the SEZs. This support is usually
in the form of a strong legal framework for the
zone. Government agencies such as customs,
immigration, and finance must also be supportive.
Early integration of the SEZ into the government’s
programs will prevent problems in all
stages of development.”
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SPECIAL ECONOMIC ZONES
DEFINED

SEZs are developed around existing infrastructure to reduce STREAMLINED

the amount of investment required, to support the facilities
already in place, and to promote continuing infrastructure
development. SEZs of all types are tools used by
governments to create areas of concentrated commercial,
trade, or industrial activity.
SEZs rely on access to transportation to make them viable.
Indeed, it was an airport that caused the development of the
first EPZ. For most zones, access to one or more modes
of transport is critical for the successful
development of the free zone.
Finally, a Special Economic Zone can serve as a region
where a country with an economy in transition can liberalize
the economy without having to make dramatic changes in
laws and tradition throughout the rest of the country.
WHAT MAKES
A GOOD SEZ?
Most SEZs are unique because their geographic areas are
unique. Therefore, what works in one location may not work
in another. However, there are SEZ characteristics that stand
out above all the rest in determining the success of a SEZ.
Key characteristics of a successful free zone are:
• Government support.
• Adequate infrastructure.
• Streamlined procedures.
• Maximized use of natural resources.
• Plan for the future.
PROCEDURES
The most successful SEZs have streamlined customs
procedures for handling goods entering the zone. When
procedures are streamlined, investors are more readily
attracted to the area because they are confident their
goods will be handled without unnecessary delay. In
the logistics business, time is money.
MAXIMIZED USE OF
NATURAL RESOURCES
Each SEZ analyzed was located in an area with vastly
different natural resources. In this context, natural
resources can include labor, land, location, minerals,
or hydrocarbons. Utilizing the resources of a given
area to the fullest extent possible is the key to the
success of an SEZ.
PLAN FOR
THE FUTURE
Planning for the future is necessary for the successful
growth of a free zone. Continuous updating of the SEZ
plan to anticipate the needs of long term development
is crucial. While detailed and comprehensive planning
on this scale take times and investment, it ensures that
the overall impact of the extensive infrastructure
improvements will be positive and have a long lasting
value to both the local population (work force)
and investors.

GOVERNMENT
SUPPORT

The entire country must support the development and

operation of the SEZs. This support is usually in the form of
a strong legal framework for the zone. Government agencies
such as customs, immigration, and finance must also be
supportive. Early integration of the SEZ into the government’s
programs, will prevent problems in all stages of development.

ADEQUATE
INFRASTRUCTURE

Every successful SEZ has emphasized the importance of

providing adequate infrastructure as a key to attracting
investment. Transportation, power, water, sewerage, and
telecommunications are all important
infrastructure requirements.

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 “The Chord Group works within the
worldwide knowledge economy, operating as
‘innovators and economic development accelerators’,
creating distinct and valuable business zones
that have financial and trading advantages
for the local economy, the zone operator,
and its participants. We are one of the
world’s leading special economic
zone consulting groups.”
EXPERIENCE. DEDICATION. TALENT.
 WHO WE ARE
We have a 20-year history of successfully creating
some of the best special economic zones in the
world. Chord has a unique proprietary system
and implementation model that saves our partners
years of work and costs.

Our global team of industry-focused experts bring

25 years of operational, management, and executive
experience, offering valuable sector-specific insight
for our clients.

Our priority is to achieve measurable economic growth

and significant FDI in an accelerated time frame, and
maintain them for the long term. We are the only group
in the world that provides a fixed guarantee to cover
these critical goals.

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 VISION VALUES
To continually learn, grow, and improve our Our organizational values represent Chord’s essence.
knowledge and experience in special economic Every individual within the organization drives these
zones, Chord will continue to play a fundamental values with passion and persistence for our continued
role in the overall economic development and success and growth as an organization and for its
prosperity of individuals, corporate entities, and individuals. Our values include:
developing nations around the globe.
• Improvement
• Commitment
• Respect
MISSION • Environment
• Quality
To create a universally recognized, state-of-the-art • People
“technology oasis” by facilitating and promoting • Innovation.
knowledge-based industries and fostering research
and development within a fully integrated
business community.

The group offers a full range of strategic, operational, and technological solutions to help our
clients, be they governments, capital markets clients, or the global array of corporate clients.
They respond to regulatory demands and changing environments to achieve positive commercial
results. There can be no “one size fits all” approach in today’s complex and fast changing
markets-we have the practical experience to help governments and organizations exploit the
opportunities that change brings. Our goal is to facilitate real competitive advantage.

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 KEY CONCESSION
AND INCENTIVES
Government is encouraged to provide a range of incentives to support our SEZ programs and attract, develop,
and sustain economic growth and employment. These concessions and incentives include:

CHORD SEZ FEATURES PRACTICAL TENANT BENEFITS

100% foreign business ownership Own your own business, without the need for a local partner
FULL BUSINESS
OWNERSHIP Full capital repatriation Move your money freely around the world

0% personal and corporate tax

TAX BENEFITS rate for 50 years guaranteed
Invest your resources where it matters the most

DYNAMIC We fit our SEZs with the latest Be a part of our thriving community that supports all
COMMUNITY technology, infrastructure and support types of businesses

Benefit from valuable insights through our Knowledge Series

BUSINESS
Training sessions program of monthly educational events and workshops
GROWTH

Connect with your peers and explore new business

COMMUNITY Networking events opportunities at our networking events as part of our sector-
specific clubs

ROBUST LEGAL Secure, regulated environment, Through our international standards, our SEZ provides
AND REGULATORY licensing a full range of business businesses with a safe and secure environment in which
FRAMEWORKS activities to operate. so you can trade with confidence

Variety of commercial and No matter what you need, we have the right solution for you.
PROPERTY
residential properties for lease at As your business grows, you can choose to increase your
SOLUTIONS competitive rates space, too

Smooth and hassle-free procedures in person and online

EFFICIENT SET-UP Streamlined issuing of all
through the SEZ Free Zone Member Portal, allowing you to
PROCESSES documentation and licenses
focus on developing your business.

KEY BENEFITS
FOR GOVERNMENT

DIRECT INDIRECT
BENEFIT
BENEFITS BENEFITS
1. FOREIGN EXCHANGE EARNINGS FDI YES
2. FDI YES
3. EMPLOYMENT GENERATION YES
4. GOVERNMENT REVENUE YES
5. EXPORT GROWTH YES
6. SKILLS UPGRADING YES
7. TESTING FIELD FOR WIDER ECONOMIC REFORM YES
8. TECHNOLOGY TRANSFER YES
9. DEMONSTRATION EFFECT YES
10. EXPORT DIVERSIFICATION YES
11. ENHANCING TRADE EFFICIENCY OF DOMESTIC FIRMS YES

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 KEY SUCCESS CRITERIA

REVENUE
ESTABLISH AND
ESTABLISH MARKET A GLOBAL TAX GLOBAL FINANCIAL
SEZ SEZ BRAND CONCESSIONS EFFICIENCY SERVICES
BUILDING SUCCESSFUL ZONES
‘ROUTE TO ‘GLOBAL ‘GLOBALLY ‘TOP 1% OF ‘JOB, SALES,
‘LOGISTICS’
MARKET’ CONVERSION’ COMPETITIVE’ ZONES’ INCOME’

KEY REQUIREMENTS FOR CHORD SEZ

Minimal touch 100% foreign No currency
points Global reach Quality ownership restrictions Onsite customs

0% corporate tax
for 50 years No restriction Commercial
Efficiency and on foreign talent sales and
competency Seamless flow Distribution (a concession that is
renewable) or employees leasing

Ability to mortgage
Consistent Strategic No restriction on your premises to a Licensing and
service delivery future fit Value capital repatriation bank or financing registration
company

Service level with

0% import government to agree Land
Quality of Market intel / or re-export development
infrastructure understanding Price 5 days company
duties establishment and oppurtunities
visas

Revenue / 0% personal
Network reach capital gain Promotion income tax Trade finance

Visibility through
systems and Asset
Presence management
processes

Exchange
traded
products

Exchange
traded funds

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KEY ATTRIBUTES
OF A CHORD SEZ
1. Highly secured facilities.
2. Cutting-edge infrastructure.
3. Sound, new regulatory environment.
4. New and dedicated government-appointed
administrative authority focused on fast-track services.
5. Full zone management.
6. Competitive and business-focused governance.
7. Simplified business process compared to
traditional establishment process in-country.
8. Dedicated operational team and centralized
SEZ authority.
LINKAGE, EXTERNALITIES
• Proven protection of intellectual property.
• Dynamic international community.
• Opportunities for business interaction and networking.
• Opportunities for channel and market development.
ECONOMIC
IMPACT ANALYSIS
Chord always provides fovernment and relevant
stakeholders with a full economic impact analysis
(EIA). which provides an evaluation of the economic
impacts of each SEZ project, how it benefits
government, citizens, and the wider community.
BENEFITS FOR
LOCAL BUSINESSES
• Existing local businesses will benefit from new
customers and new sales opportunities by
acting as suppliers and providing support
services to SEZ businesses and employees.
• Local contractors and labor will be employed
throughout each of the development phases of
the project.
• Tenants are limited to specific industries,
which offer the greatest impact on the greater
economy and unemployment rates. Also,
tenants will not trade within the host country,
and all business (unless granted specific
exceptions) will be carried out internationally
so as not to compete with local businesses.
INITIAL
PROJECT PHASE
The Chord Group recommends that existing
infrastructure be set aside to provide temporary
accommodation for each SEZ. This will enable
the SEZ to secure immediate key wins by
attracting new companies within (usually) less
than three months. This dual use policy will also add
immediate government revenue.
DEVELOPMENT
The Chord Group traditionally builds approximately
1-5 million square feet for each special economic zone.
IMPLEMENTATION
Each SEZ will add to the existing transportation
fabric of the host country, as well as its infrastructure
assets, to develop a best of breed SEZ model
centered upon new knowledge-based industries.
Each SEZ will include office accommodation,
warehousing, and industrial units for businesses in
high-growth industries. The SEZs will also provide
tenants and their employees with a unique set of
concessions granted exclusively by government for
a period of up to 50 years.
Our evidence-based, logical, and participatory
approach to successful zone launches is detailed in
our proprietary flow chart model. This is shown on
the next page. Chord divides each SEZ project into
practical stages that ensure clear gateway points,
enable client participation and feedback, and
establish a very clear rationale for the
project development.

REGULATIONS
Each Chord SEZ is governed by a special
economic zone authority – a new, streamlined,
regulatory authority specifically established under
proposed special economic zone law. This
guarantees the efficiency of each SEZ while
providing a wealth of globally competitive
incentives designed to attract “future
proof” industries to the host country.

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 CHORD'S APPROACH

SEZ SCOPING
DATA GAP ANALYSIS

STUDY BRIEFS FOR INTEGRATED

Organization and Processes
RESEARCH WORKSTREAMS Market and Economy
Structure Regional Economic
Priorities
Capacity
SEZ Economic Sectors
Timing Requirements INTEGRATED
IR DATA
Roles and Responsibilities ASSESSMENT
ANALYSIS
MODEL Transport and Logistics

Economy and Investment Road

Baseline
Economic Trends Analysis Rail

Land and Real Estate Air

ASEZ BASELINE Dry Ports
Special Economic Zone Plan
Refined Objective & Project Vision Logistics
Current Projects
Industrial Growth
Economy Finance and
Investment
Planning and Development
REGIONAL DEVELOPMENT
FRAMEWORK Land use - Industrial,
Law and Regulation Draft Commercial, Mixed Use
Master Planning Concepts
Special Economic Zone Law
Urban Transformation
Prepare Underling Regulations
Issue Policy and Operating STRATEGIC Housing
Guidelines ASSESSMENT
MASTERPLAN Planning Policy and
CRITERIA Regulation
Help to Form Special
Economic Zone
OPTIONS
Environment and Ecology
Vision & Strategic Heritage/Archeaology
Masterplan Options
Potential Partnership Climate
with others Resources
FINALIZATION OF PREFERRED
Private Sector Partners SEZ MASTERPLAN OPTIONS Topography and Hydrology

Public Sector Partners Geotechnical/Ground

Conditions
Community and Special
Interest Groups

DETAIL DELIVERY STRATEGY

HIGH LEVEL COSTING AND STRATEGY FREEZE Socail Infrastructure
Implementation
Approaches Skills Development
Planning
Education
Financing
APPROVAL OF ALL LAWS, REGS, AND Health

ASSOCIATED STRATEGIES
Sustainability

Utility/Infrastructure
Communication and REGIONAL MASTERPLAN PHASING & Energy
Consultation DEVELOPMENT TECHNICAL
DELIVERY
& DETAILED STRATEGIES Water Waste
Communication and Media FRAMEWORK PLAN STRATEGIES
IT/Communications
Consulation Processes and
Forums
Stakeholder Input and
Engagement

OPERATION, MANAGEMENT,
Governance AND EXPANSION OF ASEZ

ASSETS & RESOURCES

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EXPERTISE
WHAT WE DO
Facility
Management
SEZ Property
Management
Property
Handover
SEZ Support
Services
Commercial Fit
Leasing
Branding/Marketing
PROJECT MANAGEMENT
1. Provide end-to-end
management of building and
infrastructure projects, from
concept to completion.
2. Manage of MEP
scope of works related to
building and infrastructure
development projects.
3. Liaise with consultants,
contractors, and regulatory
authorities throughout the
project development life cycle.
4. Oversee projects throughout
life cycle to improve project
management services and
ensure best quality standards.
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SEZ Feasibility
Study
SEZ Zone
Software
LAND MANAGEMENT
1. Manage pre- and post-sales
and/or leases of SEZ and
fixed assets.
2. Ensure and maintain
sustainable relationships with
private investors and other
stakeholders.
3. Provide technical administration
of customer relationship
management (CRM) systems,
and control property and
property unit inventories to
support sales and leasing of
units.
Master Planning
Design and
Construction
SEZ
Development
Institutional
Structures
Legislation
Policy Operating
Framework
Project
Management
ENGINEERING OPERATIONS
1. Manage master plan
projects, from design brief to
final stage.
2. Operate and maintain of
Chord’s SEZ infrastructure
facilities and assets to ensure
the infrastructure is well
maintained.
3. Review and facilitate all
communications and work with
the appointed regulator.
(special economic zone authority)
4. Ensure all Chord SEZs are
within the top ten one percent
of all SEZs in the world.
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 CAPITAL PLANNING FRAMEWORK
The Chord Group understands the capital implications of their SEZ activities. The efficient use of capital is embedded
within our businesses.
The below diagram shows our framework for capital planning, which encompasses the issues that Chord will address.

LEVEL Core Elements of Capital Planning

Board and Senior TOP-DOWN RISK MANAGEMENT REPORTS
Management • Development of business plan
• Definition of overall economic capital target
• Setting of tolerance for risk
• Specification of required returns
• Allocation of risk appetite to business lines
• Definition of risk limits for business lines
• Specification of framework for risk assessment Implementation of

INTERNAL CONTROL REVIEW

GUIDELINES consistent incentive system

Tactical Risk
Management RISK AND CAPITAL MANAGEMENT BY BUSINESS LINES
Asset and
Credit Market Liquidity Operational Other
Liability
Risk Risk Risk Risk Risks
Management

Analytical BOTTOM UP RISK MANAGEMENT

Risk
• Risk identification • Risk aggregation
Management
• Risk measurement • Risk allocation
Activities • Individual risk monitoring • Monitoring of overall risk in
• Reporting comparison with capital
• Performance measurement

After we prepare the business and implementation

strategy for each SEZ, the next set of deliverables
includes detailed risk management strategies, such as
specifications for which risks to assume, identify, and Small to medium- Medium-sized Large Capex for
measure. We also provide the know-how to monitor, sized Capex with one Capex with nationally critical
major business line sites for
report, and manage these risks. These guidelines will for a site
several business
conglomerates
lines
be communicated clearly to all stakeholders. GOOD

Important elements of our risk management strategy

BOTTOM-UP
include the specifications for the total economic APPROACH
capital target and our investors appetite for risk. The
ECONOMIC CAPITAL

INTERMEDIATE Full simulation

latter directly influences Chord’s external status, APPROACH approach

because a higher risk appetite and, consequently, a Parametric

Sophisticated
TOP-DOWN methodology
higher assumed total risk lead to a higher APPROACH
distribution
Time consuming
probability of default. Empirical approach
Proxies based
Data requirements
Simplistic
Benchmark based aggregation Model risk
Another key step in implementing Chord’s risk Peer assessment of
economic capital Quick results
management strategy is to select the approach and Quick results
degree of complexity of the economic capital risk Uncertainty
management systems that would be appropriate to
the business needs and risk profiles of each chosen POOR
site. LOW HIGH

The figure on the right demonstrates Chord’s risk

management systems approaches and degrees of
Complexity.

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EVALUATION OF CHORD’S PERFORMANCE

OUR VISION
Creating the top 1% of global Special Economic Zones

OUR MISSION
Adding value to a host country's economy by providing integrated business solutions,
to attract regional and international investors looking for a unique business platform,
through service excellence in a customer centric business environment, by dedicated,
competent and loyal people.

Financial Customer Customer Process Learning & Growth

Optimize cost to attain

financial efficieny
whilst sustaining value Enhance quality Build a motivated
Develop added-value standards of compitent workforce
services to maximise premises to provide with passion to serve
value for money for a unique life experience the customers and
Increase profitability tenants for tenants the community
through regulatory
arbitrage

Promote the SEZ as a

new branding statement
Capitalize on
strong standing & use
Chord’s brand by
attracting companies
from primary markets &
from explaring new
secondary markets
Increase diversification
paths to inrease profits
and sustain liquidity
Sustain a culture of
service excellence,
driven by high
standard and
governance
Build and manage a
customer relationship
based on involvement
transparency, & strong
two-way communication
Capitalize on information
and communication Persist in building and
technology to enhance managing explicit and
service provision and tact knowledge
reduce risk
Capitalize on excellence
Promote a leadership
culture to increase
that is dedicated to
efficiency & effectiveness
excellence
of operations

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PERFORMANCE...GUARANTEED
HOW CHORD IS
HELD ACCOUNTABLE

STRATEGIC GOALS, CRITICAL SUCCESS FACTORS AND

KEY PERFORMANCE INDICATORS

STRATEGIC
GOAL #1 OPTIMIZE COST TO ATTAIN FINANCIAL EFFICIENCY WHILE SUSTAINING VALUE

Critical Success Factor: Prioritisation and alignment of manpower initiatives

KPI # Key Performance Indicator Chord Department
1.1 % of key OPEX costs to revenue Finance
1.2 % of manpower cost to revenue Human Capital

1.3 % optimization of operational costs of buildings per sq. ft. Interiors and Facility Management

1.4 % savings in major projects through value engineering Projects

STRATEGIC INCREASE PROFITABILITY THROUGH EXISTING SOURCES

GOAL #2

Critical Success Factor: Sustain the exisiting revenue

KPI # Key Performance Indicator Chord Department
Sales
Administration, Compliance and
% increase in revenue from existing
2.1 infrastructure
Procurement
Tenant’s Employee Affairs Leasing
and Licensing

2.2 Number of new innovative products Marketing and Corporate

2.3 % revenue from new, innovative products Communication Sales

2.4 Ensure optimal EBID is met Finance

2.5 % increase in net profit Finance

STRATEGIC INCREASE DIVERSIFICATION PATHS TO INCREASE PROFITS AND SUSTAIN

GOAL #3 LIQUIDITY
Critical Success Factor: Support of higher leadership committee on proposed diversifications
KPI # Key Performance Indicator Chord Department
% increase in profits from diversified investments related to
3.1 the zone’s core business
Finance

% increase in profits from diversified investments

3.2 unrelated to the zone’s core business
Finance

Minimum achieved rate of return on projects or

3.3 investments
Finance

STRATEGIC CAPITALIZE ON THE INFRASTRUCTURE ASSETS TO ATTRACT COMPANIES

GOAL #4 FROM PRIMARY MARKETS AS WELL AS NEW MARKETS
Critical Success Factor: Study and identify target markets
KPI # Key Performance Indicator Chord Department
4.1 Meet criteria for leads converted into sales Sales

4.2 Meet criteria for companies from target markets Sales

Marketing and Corporate
4.3 Meet criteria for sales leads from target markets
Communication

4.4 Meet criteria for newly registered companies Sales

4.5 Number of new multinational companies Sales

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 HOW CORD IS
HELD ACCOUNTABLE

STRATEGIC LAUNCH GLOBAL MARKETING AND RECRUITING INITIATIVES

GOAL #5

Critical Success Factor: Maximize reach and influence

KPI # Key Performance Indicator Chord Department
Marketing and Corporate
5.1 Member of CSR activities conducted
Communications
% of host country nationals recruited by zone
5.2 for its companies
Human Capital
Meet indirect and induced minimum economic
5.3 benchmarks
Human Capital

Marketing and Corporate

5.4 Enhance society’s perception of the SEZ globally
Communications

STRATEGIC BUILD AND MANAGE A CUSTOMER RELATIONSHIP BASED ON INVOLVEMENT,

GOAL #6 TRANSPARENCY, AND STRONG, TWO-WAY COMMUNICATION
Critical Success Factor: Enhance a customer-focused culture to increase customer base
KPI # Key Performance Indicator Chord Department
6.1 % space lost from total occupied area Leasing and Licensing

6.2 % customer turnover rate Customer Relations

6.3 % implementation of key account manager initiative Customer Relations

6.4 Number of joint initiatives with customers Customer Relations

6.5 % closure of issues raised from leadership visit to customers Customer Relations

6.6 Number of customer interaction events Customer Relations

Number of knowledge sessions for government, stakeholders,
6.7 and customers on services, procedures, and systems
Customer Relations

STRATEGIC SUSTAIN EXCELLENCE DRIVEN BY HIGH STANDARDS AND GOVERNANCE

GOAL #7

Critical Success Factor: Comprehensive customer relationship management (CRM)

KPI # Key Performance Indicator Chord Department
7.1 % of customer satisfaction Customer Relations

7.2 % of services with defined time for delivery – internally Strategy and Excellence

7.3 % of services completed within the set time frame Customer Relations

7.4 % of implementation for a dedicated call center Customer Relations

% of services provided to tenants covered with internal OLA
7.5 within departments and external SLA with service providers
Strategy and Excellence

7.6 % increase in “upsell” score Customer Relations

7.7 % implementation of a comprehensive CRM system Customer Relations

STRATEGIC DEVELOP ADDED-VALUE SERVICES TO MAXIMISE VALUE FOR MONEY FOR

GOAL #8 TENANTS
Critical Success Factor: Understand the customers’ needs and expectations

KPI # Key Performance Indicator Chord Department

Number of added-value services for customers Administration, Compliance and
8.1 (internally or based on customer requests) Procurement
Administration, Compliance and
8.2 Number of services developed, linked to our location
Procurement
Number of enhancements to existing business facilities for Administration, Compliance and
8.3 customers Procurement

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 OUR IMPLEMENTATION APPROACH:
PROVEN & TESTED FOR OPTIMAL OUTCOMES
CHORD'S PHASED DELIVERY

PHASE AND RESULT DELIVERABLES

• Prepare and present feasibility study to determine the socio-economic benefits
PHASE 1 (A) FEASIBILITY for government, all stakeholders, investors, developer, and tenants.
STUDY • Provide and undertake presentations and negotiations, and secure informal
approval from key stakeholders for the proposed development.

PHASE 1 (B) MEMORANDUM • Draft, negotiate and issue an MOU for the concessions and proposed
OF UNDERSTANDING development with government.

PHASE 1 (C) INSTITUTIONAL • Develop and refine full valuation models and returns on investment to allow
accurate assessment of any proposed investment and the mechanisms to
STRUCTURES
reduce risk.

• Devise, design, and present the SEZ master plan. The master plan will address
the overall design/build concept that includes urban design, landscaping,
infrastructure, service provision, circulation, present and future land use, and
PHASE 2 (A) MASTER PLAN built form. It will provide a structured approach and create a clear framework for
AND SUSTAINABILITY developing the SEZ. The sustainability strategies will recommend and integrate
STRATEGIES DEVELOPMENT ways to reduce negative impacts on the environment and on the health and
comfort of our tenants, thereby reducing the consumption of non-renewable
resources, minimizing waste and creating a healthy, productive
business community.

PHASE 2 (B) PARTNERS & • Introduce key strategic SEZ partners and formulate joint ventures as
RELATIONSHIPS required and desired.

PROJECT BUDGETING AND FINANCIAL ANALYSIS

PHASE 3 VALUATION,
• Conceptualize, build, and sensitize financial projections and budgets.
PROJECTIONS, AND
FINANCIAL ANALYSIS • Develop and update the master development budget, including monthly
and quarterly cash flow forecast/outlook through project completion.

STRATEGIC INITIATIVES
• Conceptualize, build, and sensitize financial models to analize potential
land acquisitions and sales.
• Assist in preparing investment memos or other documents for SEZ's
management committee.
• Prepare proposals and presentations for potential strategic partnerships and JV’s.
• Perform research and market studies to assess market conditions on metrics
like construction costs, sales pricing, real estate and valuations, etc.
• Assist in developing and maintaining good working relationships with
development partners to achieve mutual goals.

SCHEDULE MANAGEMENT
• Assist in creating and coordinating project schedules and maintaining the
process for project team adherence and accountability to time lines.

PERFORMANCE REPORTING
• Compile variance and other reports to track the performance of the project.
• Prepare and submit regular periodic investor and project reports.
• Provide periodic reports on project progress or key issues and findings.

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 PHASE AND RESULT DELIVERABLES
• Draft, negotiate and finalize definitive agreement between government
PHASE 4 DEFINITIVE and Chord. The Chord definitive agreements have been refined over the
AGREEMENT years with many governments and provide a streamlined document that is
well-balanced and comprehensive.

• To be relied upon by Chord Group and government to justify the concessions

and proposed legislation. Economic impact simulations will predict the
PHASE 5 ECONOMIC IMPACT economic effects upon the regional and state economy by virtue of the SEZ.
ANALYSIS (“EIA”) The EIA will leverage “counterfactual” simulations as well as traditional policy
modeling and predict the economic impact of a significant SEZ policy change
upon the state economy.

• Introduce proposed new legislation for all stakeholders, with a focus on

government and civil service. This will include new and extensive laws that
PHASE 6 LEGISLATION will be drafted and prepared for presentation and issue to government in
conjunction with the existing attorneys selected by the host country.

PHASE 7 GOVERNANCE • Introduce a new government special economic zone authority (SEZA) to
AND SEZ AUTHORITY regulate businesses in the zone.

• Provide all SEZ policy frameworks, which will be comprised of proven and
logical government and SEZ policy structures, and internationally recognized
PHASE 8 POLICY AND
policy documents, processes, and policies that enable the SEZ to be
OPERATING FRAMEWORKS managed-effectively, profitable, and to meet the needs of local and
international investors, stakeholders, and government.
• Introduce, facilitate, and manage sales and leasing process, including CRM,
sales staff, and channel partners.
• Develop a comprehensive, well-researched, and tested branding platform
for the SEZ.
PHASE 9 BRAND, MARKET, • Develop, present, and execute a comprehensive marketing program to
SELL, AND LEASE generate interest and leads for the sales team.
• Identify and build effective sales offices with visual models, presentation
tools, and collateral materials for prospective tenants.
• Introduce of key partners from international SEZs.
• Obtain firm commitments and execute leases.
• As required, manage all operations of SEZ to maximize return on investment
PHASE 10 MANAGE for all stakeholders, including facilities management, government relations,
international JVs, and financiers.

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OFFICES
The Chord Group has offices around the globe, with additional representation via our network of partner firms
in countries where there is no physical corporate office. Currently, physical office locations are:
CHINA
BEIJING
27 Floor, Ocean International
Plaza, C 5 Jinghua South Street Beijing
Tel:1-855-233-5500 x6
fax:+86 21 628 8994
email: beijing@chordgroup.com
QUANZHOU
902 District A, Shengda Plaza
Quanxiu Road, Quanzhou City
Tel:+1-855-233-550 x6
email: qz@chordgroup.com
XIAMEN
3402 B World Trade Mansion
Xiahe Road
Xiamen
Tel:+1-855-233-5500 x6
fax:+86 21 5102 1891
email: xiamen@chordgroup.com
ASIA PACIFIC
HONG KONG
Corporation Hong Kong
19/f, Two International Finance
Centre
8 Finance Street, Hong Kong
Tel:+1-855-233-5500 x6
email: hongkong@chordgroup.com
27
FUZHOU
1319, Building 2, Apollo Hotel
Wuyizhong Road
Fuzhou City
Tel:+1-855-233-5500 x6
Tel:+86 21 5102 189
email: fuzhou@chordgroup.com
SHANGHAI
2310 Jing’an Zhonghua Building
1701 West Beijing Road
Shanghai
Tel:1-855-233-5500 x6
email: shanghai@chordgroup.com
YIWU
2307, Building A
Futian Mansion
Chouzhou North Road, Yiwu
Tel:+1-855-233-5500 x6
fax:+86 579 8582 8157
email: yiwu@chordgroup.com
INDONESIA
18th Fl, World Trade Centre II Jl.
Jend. Sudirman Kav. 29-31 Jakarta.
12920 – Indonesia
Tel:+1-855-233-5500 x6
fax:+62 21 2939 2001
email: indonesia@chordgroup.com
GUANGZHOU
10-D Xinsha Road Futian
District Shenzhen, Guangdong
Tel:+1-855-233-5500 x6
fax:+86 21 628 8994
email: gz@chordgroup.com
SHENZHEN
B 303, 3 Shixia North
Southern International Plaza
Futian District, Shenzhen
Tel:+1-855-233-5500 x6
email: shenzhen@chordgroup.com
SINGAPORE
20 Martin Road
#05-02 Seng Kee Building
Singapore
Tel:+1-855-233-5500 x6
email: singapore@chordgroup.com
www.chordgroup.com
 EUROPE
LONDON
2nd Floor 145 - 157
St. John Street
London EC1 4PW
United Kingdom
Tel:+1-855-233-5500 x4
email: uk@chordgroup.com
AFRICA
BELVILLE
Chord Group SA
4th Avenue Boston
Bellville, Cape Town
South Africa
Tel:+1-855-233-5500 x4
email: sa@chordgroup.com
UNITED STATES AND CARRIBEAN
GRAND CAYMAN
HSBC Centre, West Bay Road
George Town, Grand Cayman
P. O. Box 10315, Grand Cayman
KY1-1003, Cayman Islands
Tel:+1-855-233-5500 x3
email: cayman@chordgroup.com
www.chordgroup.com
MOSCOW
Corporation China Russia
521 , Block C, 10
Presnenskaya Naberezhnaya,
Moscow, 123317 Russia
Tel:+1-855-233-5500 x4
email: rus@chordgroup.com
CAPETOWN
Centurion Business Park
Democracy Way
Cape Town,
South Africa
Tel:+1-855-233-5500 x4
email: capetown@chordgroup.com
MIAMI
3401 North Miami Avenue
Suite 239
Miami, FL 33127
United States of America
Tel:+1-855-233-5500 x3
email: miami@chordgroup.com
SWITZERLAND
Via Ferruccio Pelli
13/6900 Lugano
Switzerland
Tel:+1-855-233-5500 x4
email: lugano@chordgroup.com
WASHINGTON DC
Corporation China Washington
1155 F Street NW, Suite 1050
Washington 20002
DC U.S.A
Tel:+1-855-233-5500 x3
email: dc@chordgroup.com
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 www.chordgroup.com

“The Chord Group is the largest developer

of knowledge-based special economic zones
in the world. With over 25 years’ experience,
22 offices around the globe, and
over 500 personnel, we create the top
one percent of special economic zones in the world.”
 www.chordgroup.com
CHINA / ASIA PACIFIC / EUROPE / AFRICA / UNITED STATES & CARIBBEAN