Shunde Road System

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In May 1993, Hopewell Shunde Roads Limited (a subsidiary of Hopewell Holdings) signed a joint venture contract with the Shunde Municipal Construction Investment Company for the construction, rehabilitation and operation of a 102-km network of 4 interconnected toll roads in the municipality. The partners have 50/50 shares in the joint venture project company: Shunde Shunhope Highways (Shunde Municipal Shunhope Highway Construction Company Limited). The joint venture will continue for 30 years after the construction is complete, at which time the roads will remain with the municipal partner. Hopewell contributed a shareholder loan of HK$ 402 million (US$ 51.9 million; Rmb 1,035 million) in addition to equity of Rmb 155.5 million (US$ 18 million). Total project costs are Rmb 3,611 million (US$ 415 million). The network opened to traffic in June 1995, and official toll operations started in August 1996. The roads have eight toll collection plazas using the open toll collection system. In 2001, HHI held the stake of 30%. None None