Guangzhou City Northern Ring Road

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In June 1990, New World Infrastructure (NWI) signed a 33-year joint venture contract with Guangzhou Freeway Company for the development and operation of the 22-km Guangzhou City Northern Ring Road (NRR). Phase I of the road, a 7.3-km section from Shabei to Yaotai, was completed and opened to traffic in December 1990. The PRC contributed this section to the joint venture company. Phase II, the 14.7-km Yaotai-Guangdan section, was started in March 1991 and the entire NRR started operating in January 1994. In 1990, NWI aquired a 40% stake in the project for an investment of US$ 19.25 in equity and US$ 22 million as a loan. In 1997, NWI signed an agreement to acquire an additional 25.29% of the Guangzhou Northring Freeway Company for Rmb 406 million (approx. US$ 49 million). Additional investment of US$97.5 million was financed through a syndicated loan. Total project costs were US$172.78 million. The other two major sponsor companies are both state-owned companies, Guangzhou Freeway Company ("GFC") and GZI Transport Limited ("GZIT"). GFC thorugh it's owned subsidiary, Guangzhou YOngtong Freeway Company Ltd., acquired the 10.41% stake in the project, while GZIT through it's owned subsidiary, Asian East Worldwide Ltd. acquired the 24.3% stake in the project. None None