Western Delta Route Phase II

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In July 2004, West Route Joint venture (JV) was granted the phase II of Western Delta Route. The project, to be developed under a 20 year BOT basis, consisted of a 46 km closed system dual three lane expressway which would extend Western Delta Route from Bijiang interchange in Shunde, where ended Phase I, to Zhongshan in the South, linking to National Trunk 105. Western Delta Route Phase I and II would shorten the travel time between Guangzhou and Zhongshan by over an over. West Route JV was a joint venture company created by Hopewell Guangzhou-Zhuhai Superhighway Development Ltd. (50%) and state-owned Guangdong Provincial highway Construction Co., Ltd. (50%). The first partner was a wholly-owned subsidiary of Hong Kong based HHI of which Hopewell Holdings Ltd. owned 74.98%. The estimated total cost of phase II was US$ 592 million (RMB 4.9 billion). Project sponsors planned to finance 35% of total cost through equal capital contributions to West Route JV. Payments of equity contribution were to be determined by progress in construction planned at 30% in 2005, 40% in 2006, and 30% in 2007. The construction of phase II, which was planned to take 3 years, started in December 2005. West Route JV was also the consortium of the 30-year BOT for Western Delta Route- Phase I, which started operation in April 2004.