REPORT TITLE:
DBED&T


DESCRIPTION:
Appropriates funds to establish a center for Asian-Pacific
infrastructure development within DBED&T.  (SB3032 SD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        3032
THE SENATE                              S.B. NO.           S.D. 2
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO ECONOMIC DEVELOPMENT.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds that there is a need to
 
 2 establish a center for Asia-Pacific infrastructure development in
 
 3 Hawaii for Asia-Pacific infrastructure development and project
 
 4 finance training.  The center for Asia-Pacific infrastructure
 
 5 development will bring together Asia-Pacific officials with
 
 6 export-oriented, knowledgeable Hawaii and U.S. firms and
 
 7 financial funding agencies to meet the infrastructure needs of
 
 8 the Asia-Pacific region.
 
 9      The World Bank has estimated that developing countries
 
10 invest more than $200 billion annually in infrastructure
 
11 projects, which include transport, power, water, sanitation, and
 
12 telecommunications.  China alone could absorb that amount if it
 
13 were available.  These burgeoning amounts go well beyond the
 
14 internal engineering and construction capabilities and financial
 
15 resources of these countries.  Recourse to international
 
16 experience in engineering is necessary along with accessible
 
17 sources of funds.  The latter requires a fuller understanding of
 
18 international capital markets, the institutions that secure and
 
19 provide capital funds, the instruments and procedures involved,
 

 
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                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1 the allocation of various types of risk in the transactions, and
 
 2 the legal basis for issuance of capital instruments, their
 
 3 surveillance and enforcement.
 
 4      Based on keen interest for assistance in engineering and
 
 5 construction as well as financing expressed by Chinese and Asia-
 
 6 Pacific government and industry officials, the State of Hawaii is
 
 7 planning to assist Hawaii companies under the aegis of the center
 
 8 for Asia-Pacific infrastructure development to establish
 
 9 relationships crucial to successfully entering markets in the
 
10 Asia-Pacific area.  The center for Asia-Pacific infrastructure
 
11 development will provide the structure for foreign policy makers
 
12 and infrastructure project planners, developers and financiers,
 
13 especially from the Asia-Pacific region, to learn about the
 
14 latest non-traditional innovative options for infrastructure
 
15 project development.  This was exactly the purpose of the highly
 
16 successful December 8-12, 1997 Infrastructure Project Finance
 
17 Seminar, which was attended by eighty-five high level Chinese
 
18 officials.  The center for Asia-Pacific infrastructure
 
19 development's programs will be designed to help attendees shape
 
20 priorities, determine feasibility, prepare finance strategies,
 
21 and develop rational plans for working with the appropriate
 
22 organizations, especially Hawaii and U.S. companies, required to
 
23 help bring the infrastructure projects to fruition.
 

 
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                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1      The center for Asia-Pacific infrastructure development would
 
 2 encourage further trade between the United States and other
 
 3 countries, especially within the Asia-Pacific region.  Seminars
 
 4 would be centered around the theme, "Hawaii:  Gateway to
 
 5 America".  Participants would gain knowledge in innovative
 
 6 financing of infrastructure and related projects, including
 
 7 exercises in developing these projects.  Furthermore, Asian
 
 8 officials and company executives would be able to meet American
 
 9 firms, especially Hawaii firms, with whom they could develop
 
10 projects.
 
11      A private multi-national financial firm with a Honolulu
 
12 office provided a majority of the speakers for the December 1997
 
13 seminar, and their experiences and understanding of
 
14 infrastructure project finance proved invaluable.  This firm, and
 
15 the speakers, have expressed interest in conducting more
 
16 seminars.  The department of business, economic development, and
 
17 tourism served as the coordinator for the seminar and is prepared
 
18 to sponsor additional programs on innovative financing of
 
19 infrastructure projects for developing countries throughout the
 
20 Asia-Pacific region.
 
21      The purpose of this Act is to establish a center for
 
22 Asia-Pacific infrastructure development within the department of
 
23 business, economic development, and tourism.
 

 
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                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1      SECTION 2.  The director of business, economic development,
 
 2 and tourism shall:
 
 3      (1)  Establish a center for Asia-Pacific infrastructure
 
 4           development within the department;
 
 5      (2)  Enter into negotiations with private financial firms to
 
 6           secure resources to conduct infrastructure project
 
 7           development and finance seminars in Hawaii;
 
 8      (3)  Enter into negotiations with the U.S. Department of
 
 9           Commerce, Asian Development Bank, World Bank, and other
 
10           agencies to fund and sustain such seminars;
 
11      (4)  Execute contracts in furtherance of the purposes of
 
12           this Act; and
 
13      (5)  Report on the progress of the center to the legislature
 
14           no later than twenty days prior to the convening of the
 
15           regular session of 2001.
 
16      SECTION 3.  There is appropriated out of the general
 
17 revenues of the State of Hawaii the sum of $       , or so much
 
18 thereof as may be necessary for fiscal year 2000-2001, for the
 
19 establishment of a center for Asia-Pacific infrastructure
 
20 development within the department of business, economic
 
21 development, and tourism for infrastructure development and
 
22 project finance training; provided that no funds shall be
 
23 released unless matched dollar for dollar with federal,
 

 
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                                     S.B. NO.           S.D. 2
                                                        
                                                        

 
 1 international agency, or private funds.
 
 2      SECTION 4.  The sum appropriated shall be expended by the
 
 3 department of business, economic development, and tourism for the
 
 4 purposes of this Act.
 
 5      SECTION 5.  This Act shall take effect on July 1, 2000.