Greater Beijing Region Expressways

Active

Greater Beijing Region Expressways (GBRE) was formed in 1996 from a consortium of Singapore, Hong Kong and Chinese investors for the construction and operation of toll roads in China, under joint venture contracts with provincial and municipal government partners. GBRE is registered in the British Virgin Islands. Minority shareholders include Bechtel (2.2%) and Quantum Emerging Growth Partners (2.2%). GBRE has majority interests in 10 toll expressways connecting Beijing with Tianjin and Hebei Province. In May and August 1997, GBRE issued two bonds for a total of $288 million to fund capital commitments on existing roads and to cover construction costs of two more, due to open in 2000. GBRE's total project costs are US$880 million. In May 1997 GBRE was planning to issue US$150-200 million of H-shares on the Hong Kong stock exchange. In 2000, the company defaulted on its bonds, and it seems likely that the company will be liquidated. In June 2000, the Hong Kong High Court granted an order for the winding up of the company, and its main assets are likely to be put for sale. As of July 2001, GBRE was still negotiating with potential buyers.