Bengbu Huaihe Bridge section of Provincial Highway 307

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In March 1997, Road King Infrastructure signed two 23-year joint venture contracts for the upgrade and operation of Provincial Highway 307 (Huaiyuan-Mengcheng Highway and Huaihe Bridge) in Bengbu, Anhui Province. The 58.9-km highway and 20.7-km bridge section link National Highway 206 in the south of Anhui to the provincial capital, Hefei. Road King obtained a 60% equity stake in each of the joint ventures in return for a total investment of HK$225 million (US$29.1 million). Road King funds its projects from internally generated funds and long term debt. This includes a US$ 138 million syndicated loan and US$ 140 million 10-year fixed rate notes arranged in 1997. The maximum daily traffic reached 5,700 vehicles in 1997. The standard toll is Rmb4/ton/vehicle. In 1999, the provincial government extended the joint-venture contracts duration from 23 to 32 years.