CKI Signs Contract in
China for Third Consecutive Week
- RMB 220 Million Investment in Two Bridges at Changsha -
16 November, 1997 - Hong Kong
Following the signing of contracts a week ago to build the Yiling-Yangtze Bridge in Yichang, Hubei Province, Cheung Kong Infrastructure Holdings Limited (CKI) signed another contract yesterday (November 15, 1997) to invest in the Wujialing and the Wuyilu bridges at Changsha city in Hunan Province. This signifies a new milestone in CKI's infrastructure development plan in the Central/Western region of China.
Stretching across Xianjiang (River Xiang), the 2.5-kilometre Wujialing Bridge and the 3-kilometre Wuyilu Bridge link the east and west banks of the city. CKI will invest RMB 220 million, or 44%, in the RMB 500million project, and the joint venture period will last for 25 years.
The two bridges operate on a two-way traffic, one-way toll mode. With current daily traffic of 70,000 vehicles, the bridges will immediately generate revenue for CKI.
As the provincial capital of Hunan Province with a population of 5.6 million, Changsha city is the province's economic, political, culture and educational centre. The convergence point of National Highways 106, 107 and 319, and a stopping point for the Beijing-Guangzhou railway, Changsha is a major transportation hub and an important finance, technical and raw material collection and dispatch centre in China¡¦s Central/Western region. This 3000-year-old city, well renowned as the "Famous City of Chu and Han", holds a significant place in ancient as well as modern Chinese history.
With Xianjiang running through the city, Changsha is divided into the east and west banks, with the former as the city's business and commercial centre. However, with the upcoming relocation of the municipal government offices to the west, the west bank will undergo a rapid face-lift and is targeted as Changsha's new business and commercial centre.
For the city's future development, the Changsha government has decided on the construction of the "Six Bridges Three Rings" transportation network, with the Wujialing and Wuyilu bridges constituting part of the inner ring of the network.
According to Mr. H L Kam, Group Managing Director of Cheung Kong Infrastructure Holdings Ltd, "Following the relocation of the city centre to the west side, Changsha will experience tremendous social and economic progress in the next ten years which will bring a new look to the city. As the main means of transportation linking the east and west sides of Changsha, the two bridges will play a key role in the future development of the city. This investment is CKI's first step in Hunan's infrastructure development."
CKI's transportation investment portfolio in the PRC has expanded rapidly with transportation projects covering many areas in Mainland China including Shantou, Guangzhou, Nanhai, Jiangmen and Zengcheng in Guangdong Province, Shenyang in Liaoning Province, Tangshan in Hebei Province, Zhumadian in Henan Province, and Yichang in Hubei Province. Together with this bridge contract, CKI's investment in transportation in the PRC has now reached RMB 7billion.
"Since the Central/Western region investment seminar last year, CKI has signed several contracts in the Central/Western region, including the Zhumadian section of National Highway 107, the Qinyang power plants in Henan Province, the Yiling-Yangtze Bridge in Hubei Province, as well as this recently-signed contract for the Wujialing and the Wuyilu bridges at Changsha city in Hunan Province. CKI sees great development potential in the Central/Western region. We will therefore continue to apply the clustering strategy and actively seek to participate in infrastructure development in this region," continued Mr Kam.
Records show that in the past three weeks, CKI has signed on projects including the Jilin heat and electricity co-generation plants, the Yiling-Yangtze Bridge in Yichang, and the Changsha bridges contract, thus continuing the contract-signing momentum in the past seven months (see attached chart). Mr Kam said, "In view of the current Asian investment scene, China infrastructure could be regarded as relatively the more secure investment opportunity. Bearing strong financial capabilities, CKI is committed to carrying on its strategy and invest in high yield projects in support of the rapid growth of infrastructure development in China."
CKI Project Signings (May - September 1997)
|May||Liaoning||Shenyang Ring Roads||400|
|June||Henan||Zhumadian Section of National Highway 107||383|
|July||Liaoning||Fushun Water Plants||200|
|July||Liaoning||Shenyang Shifosi Water Plants||200|
|Aug.||Guangdong||Jiangmen Xiejiang Water Plant||107|
|Sept.||Henan||Qinyang Power Plants||239|
|Oct.||Jilin||Siping coal-fired heat and electricity co-generation plants||775|
|Nov.||Hubei||Yichang Yiling-Yangtze Bridge||450|
|Nov.||Hunan||Changsha Wujialing and Wuliyu bridges||220|