Shenzhen Meilin-Guanlan Expressway

cancelled

In March 1994, Road King Infrastructure took a 45% stake in a 30-year joint venture for the construction and operation of the Shenzhen-Meilin Guanlan Expressway in Shenzhen, PRC. Its partner is the SOE, Shenzhen Freeway Development Company. Road King has effective control over the Shenzhen Meiguan Highway Co. and considers it a subsidiary. Road King had invested a total of HK$375 million (US$ 48.4 million) in the road by March 1998. In November 1996, Road King gave up its preferential profit distribution arrangement in return for a 5 year extension on the joint venture period and the addition of the Huanggang North Road to the project. A toll increase in September 1997 helped raise revenue by 70% between 1996 and 1997. During the same period, the maximum number of daily vehicles rose from 13,500 to 20,000. 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. On Mar. 1999, Shenzhen Expressway acquired the 45% equity interest that Road King had in the project company.