CKI Signs New Contracts
and Agreements in Shenyang
- Brings Cheung Kong Group's Investment in Shenyang to RMB
1.8 billion -
15 May, 1997 - Hong Kong
Cheung Kong Infrastructure Holdings Limited (CKI) has increased its investment in Shenyang City, Liaoning Province, through the addition of four new road contracts and two new water plant agreements.
"Combined with our energy investments in Fushun City, which is also in Liaoning Province, we have established a solid cluster of projects in northern China. With our strong existing clusters in southern China, and our rapid developments in central China, CKI has truly established itself as a major player in PRC infrastructure," explained Mr H L Kam, Group Managing Director of Cheung Kong Infrastructure Holdings Limited.
Mr Kam continued, "In line with CKI's clustering strategy, the addition of these latest projects in Shenyang will further strengthen the overall value of our investments in the city."
"Our project cluster in Shenyang City, which currently includes seven roads, two bridges and a hotel under development by Cheung Kong Holdings, already represents a very substantial investment. The addition of these four new contracts has brought the Cheung Kong Group's total investment in the city to RMB 1.8 billion," said Mr Kam.
"Should the two water plant agreements be converted into contracts, our investment in Shenyang will reach RMB 2 billion. This dedication is representative of our commitment to the total development of Shenyang," commented Mr Kam.
CKI has signed four new road contracts regarding four sections of Shenyang's Second Ring Road (click to see the attached map.) The elevated dual-three-lane highway represents a total equity investment of RMB 770 million, of which CKI has a 52% share. The project is scheduled for completion by December 1997 under a turnkey construction contract, and the joint venture will last for a period of 31 years.
"The four road contracts we have signed connect with our existing network of seven roads and two bridges in Shenyang. This synergy will lead to improved access and greater traffic flow for all of our transportation investments in the city," explained Mr Kam.
CKI also signed agreements pertaining to two water plants in Shenyang. The first plant has a capacity of 200,000 tonnes per day, and has been operational since 1986. The second plant, which is scheduled for completion in two years, also features a capacity of 200,000 tonnes per day. Should the contract materialise, the two plants will represent a RMB 400 million total equity investment, of which CKI will have a 50% stake. The joint venture period will last for 20 years.
Mr Kam continued, "We are very excited about the prospect of adding these two water plants to our investment portfolio. Water plants represent a relatively new portion of Our Business - one which we hope to expand in the near future."
"We are very satisfied with our recent developments,
and these latest contract signings in Shenyang are just the
first of many more to come," concluded Mr Kam.