Hongliuhe-Naomaohu Railway

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In November 2011, a joint venture Xinjiang Hongnaosan Railway Company Limited was set up to build and operate the Hongliuhe-Naomaohu Railway in Xinjiang Uygur Autonomous Region. A local private company Guanghui Energy Co., Ltd. had an 82.3% stake in the project. The total investment was US$ 1.7529 billion (RMB 10.868 billion) and the total length (including the main line and branch lines) was 438 KM. The project was approved by State Development and Reform Commission in Feb 2013. Construction commenced in 2012, even before it was officially approved. The registration capital of the JV was US$ 483.87 million (RMB 3 billion )and by August 31, 2013, US$ 179.19 million (RMB 1.111 billion) registration capital was injected by partners. By this time, a substantial portion of construction had been completed, according to some news. In September 2013, Guanghui Energy sold its 40% share of the project to a state owned enterprise and kept holding the remaining 42.3% stake. The equity debt ratio in this project was 3:7.