Jieyang Highway Network

cancelled

In November 1994 and February 1995, Road King Infrastructure signed a four 30-year joint venture contracts with a SOEs in Guangdong Province for the construction and operation of the Jieyang Highway Network. The Network comprises: National Highway 206 (Jieyang-Shantou Highway - 20km, Jieyang Fengshun Highway - 36.9km) and Provincial Highway 1930 (Jieyang-Chiwei Highway - 29.7km, Jieyang-Chanzhou Highway - 24.1km). Road King has a 50% stake in the joint ventures and the PRC partner retains ownership of the roads. Road King has invested a total of US$ 62.1 million (HK$ 480 million) in the construction and maintenance of the roads, and receives 50% of toll revenues in return. The network recorded a 26.7% increase in toll revenues between 1996 and 1997. In 1997 tolls ranged from Rmb 2 to Rmb 30 per vehicle. Road King funds its project 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. Roadking sold its share in the project in June 2001.