Baili Pu'er Tea Road and Industry-city Integration Key Construction Project

Project Name

百里普洱茶道及产城融合重点建设项目

Baili Pu'er Tea Road and Industry-city Integration Key Construction Project

Project

Industry

Tourism and Culture Industry

Project Site

The Planning Area of Pu'er Tea Road in Bali

Project Overview

The planning of Baili Pu'er Tea Road is a strategic choice for Pu'er to become an international sub-regional center city and a conglomerate converging multi links, areas, and projects. With unified planning, classified promotion, piecewise development and sectional construction, and focusing on "the source of Pu'er tea culture", it is expected to develop into an international first-class wellness project integrating rehabilitation base, sports camp, and convalescent residence. Focusing on the "Shuimo New City" and "World Tea Garden" in the "eight areas" of Baili Pu'er Tea Road, relying on the large loop line and big platform, and taking "industry, city, and people" integration as the concept, this project will create an international high-quality cultural new city based on Pu'er, serving the whole country, connecting Laos, Vietnam, and Myanmar facing South and Southeast Asia.

Project Construction

Content

Construction Scale: Baili Pu'er Tea Road - a road plan, a city's construction. It is expected to develop an international first-class sub-plateau sports wellness project integrating rehabilitation base, sports camp, and convalescent residence, which mainly focuses on the construction of the eastern forest new town health care and leisure resort center and the origin of tea theme park.

Construction Duration: 3 to 7 years

Land Area: The planned land area of the origin of tea theme park is 434,217 m², around 651.3 mu. The eastern forest new town health and leisure resort center has a total planning area of 60 square kilometers and a planned land area of 11.16 square kilometers.

Supporting Conditions

1. Natural Environment: National Forest City, National Garden City, China's Natural Oxygen Bar, China's Wellness City. The spring-like weather all year round, natural oxygen bar, ten-thousand mu tea garden, being surrounded by green mountains and clear rivers.

2. Location and Transportation: The project is located in the central urban area of Pu'er City, Yunnan Province. It takes 1.5 hours to Xishuangbanna, 4 hours to Myanmar and Laos, and 6 hours to Kunming. With the location advantages of "one city connecting three countries, one river connecting five neighbors", Pu'er is bounded by Vietnam, Laos, and Myanmar. As Lancang River and Mekong river running through the whole territory and the project is 76 km away from Simao port, a national first-class land-and-water port.

3.Urban Planning: Three orientations of the Integrated Development Planning of Sining - Strategic Choices of Pu'er to Become an International Sub-regional Central City (2020-2035) include the core area of international sub-regional central cities, the national green economy experiment demonstration pilot zone, and the national industry-city integration demonstration pilot zone.

4. Current Situation: Pu'er Baili Tea Road is advancing orderly, and major nodes have made great progress. For example, the established Yixiang Mountain Tea Tour Automobile Tourism Camp has provided a model for the construction of provincial mid-levels hotels and dotted lands.

5. Early Preparations: The Planning of Baili Pu'er Tea Road Plan has been formed and some roads have been leveled.

Investment Estimate and Fund Raising

Investment Estimate: Eastern Forest New City: RMB 36 billion; Origin of Tea Theme Park: RMB 1.7 billion.

Fund Raising: Bank loan, self-raised by the enterprises, investment attraction, and other ways

Preferential Policies Applicable

Policies on Investment Attraction of Pu'er City (Trial) (PZF[2016] No. 50) proposes:

1) Preferential financial and taxation policies: The income tax rate for enterprises investing in the "four major bases" and "four major new industries" in Pu'er City and those conforming to the Catalog of Encouraged Industries in Western Regions shall be reduced to 15%. If a foreign enterprise invests in the tourism, leisure and health resort industry, special biological industry, highland agriculture, modern forestry, trade and logistics industry, green industry and information technology industry in Pu'er, with an investment scale of more than RMB 100 million, an investment intensity of not less than RMB 3 million per mu of construction land, more than 100 jobs and an annual output value of over RMB 100 million, within five years, it will enjoy financial support according to 20% of the retained portion of the enterprise's annual tax payments to cities and counties (districts).

2) The "One case, one meeting" Principle: For qualified foreign investment projects, in addition to the preferential policies for investment attraction, the "one case, one meeting" principle is also applicable.

Market Prediction (Analysis)

Developing the Baili Pu'er Tea Road is the strategic initiatives of Pu'er City to implement the conviction that "lucid waters and lush mountains are invaluable assets" proposed by General Secretary Xi Jinping and the Belt and Road Initiatives, shine the golden sign of "Origin of Tea" of Pu'er, strive to create three brands of "green energy, green food, and healthy life destination", and promote Pu'er to be "a livable ecological city, a place for health and wellness and the source of Pu'er tea culture". It is a systematic project of basic road network construction, revitalizing available land, achieving urban space expansion and the integrated development of Pu'er City.

Profit Model and Preliminary Benefit Analysis

The project will attract and increase the urban resident population by 200,000 and the number of tourists by 45 million after its implementation. It is estimated that the annual main business income will be RMB 2.5 billion, and the investment payback period will be about 15 years, leading to a high rate of return on investment with a long payback period.

Risk Analysis

Due to a large amount of investment and the large size of the project, there may be insufficient capital supply during the construction. Therefore, enterprises should prepare a large sum of money in the early stage.

Cooperation Pattern

Joint venture, cooperation, and participation

Contact Information

Contact Authority: Investment Promotion Bureau of Simao District, Pu'er

Contact Person: Li Jinxiong

Tel.: 0879-2199606

E-mail: smqzsj@163.com