CKI Invests RMB 663m in Hebei Roads Totalling 179 km
18 June, 1997 - Hong Kong
Cheung Kong Infrastructure Holdings Limited (CKI) has signed new contracts regarding 179 km of roads in Hebei Province, for a total investment of RMB 663 million today. The signing ceremony was held in Tangshan City, Hebei Province.
CKI signed contracts to invest in roads in Hebei Province, consisting of the 80 km dual two-lane Tangshan-Jingtang Port Expressway, which is expected to be completed in December 1997, and an existing 99 km Class II highway.
The contracts represent a total investment of RMB 1.3 billion, and CKI has a 51% interest in each contract, for a total CKI investment of RMB 663 million. The joint venture period will last for 25 years.
The roads included in the contracts run from Tangshan City to Jingtang Port, and make up an important part of Hebei's transportation network. Tangshan City, with a population of 6.7 million, is a major industrial hub in Hebei. Often referred to as the "Cradle of modern Chinese industry", Tangshan City is well known for its thriving coal and ceramics industries. The city also developed the nation's first steam engine, its first railway and its first batch of cement. In addition, Tangshan City benefits from its proximity to the major cities of Beijing and Tianjin.
Much of Tangshan City's coal passes through Jingtang Port, which is a critical distribution point for Hebei's coal industry. Jingtang Port, jointly developed by the cities of Tangshan and Beijing, is well-positioned to become a major seaport in Hebei with its prime location and links to Beijing, Tianjin and Tangshan. The port plays an increasingly important role in the infrastructure of Hebei's sea transportation network - generating substantial traffic flow for roads leading to and from the port area.
"We foresee great potential for the road contracts we have signed today", commented Mr H L Kam, Group managing Director Of Cheung Kong Infrastructure Holdings Limited. "The roads, which link the flourishing economy of Tangshan with the blossoming Jingtang Port, will see greater traffic flows as port usage increases in the near future."
"These contract signings represent a significant step for CKI's interests in Hebei's infrastructure development, and are an excellent platform for further collaboration with Hebei Province in the near future. We are looking forward to further investments in the province", explained Mr Kam.
Mr Kam continued, "Our expansion into Hebei Province is another strategic move for CKI. Following the signing of these road contracts in Hebei, CKI's investment in China will expand from its current interests in Guangdong and Liaoning provinces to the eastern province of Hebei. In line with our clustering strategy, we are currently in discussions for additional projects in Hebei."
"With the addition of these new road contracts, CKI now has a total of 599 km of roads in its PRC investment portfolio", Mr Kam concluded.