Fenghua City Zhongshan East Road Extension and Changting Road Project

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In December 2015, a local private company Longyuan Construction Group Co., ltd. signed a Public Private Partnership contract with the Fenghua Municipal Government to finance build and operate the Fenghua City Zhongshan East Road Extension and Changting Road in Fenghua City, Zhejiang Province. Longyuan won the contract through a competitive bidding process. The total investment was RMB US$ 66.23 million (440 million) and Longyuan had a 98% stake in the project. The construction duration was 25 months and operational period was 8 years. Construction commenced in January 2016. Since this was not a toll road project, the Fenghua Municipal Government would grant the sponsor annual availability payment at a rate of 38% above the concurrent five year benchmark lending rate reported by the People's Bank of China (the central bank) on top of an annual operation and maintenance payment of US$ 0.03763 million (RMB 0.25 million). A special purpose vehicle Fenghua Mingfeng Infrastructure Investment Company Limited was established locally to implement the project.