Zhalantun City Comprehensive Improvement and Transformation Phase I

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The project involves the investment, financing, construction, operation and maintenance of Phase I PPP project of comprehensive improvement and reconstruction of the urban environment of Zhalantun City, Hulunbuir City, Inner Mongolia Autonomous Region of China. The project consists of 5 sub-projects: (1) reconstruction of the facade of Zhonglan Road in Zhalantun City; (2) Zhalantun city building lighting project; (3) Widening project of Lulin Street and Central North Road, Hexi New District, Zhalantun City; (4) Road maintenance and reconstruction projects in Zhalantun City, which includes 7 road reconstruction projects and 14 new road construction projects for a total length of 6178.1 meters; (5) Ancillary construction projects for four construction land roads in Hexi Middle School, Zhalantun: 4 new roads, including Lingshan Road, Planning Street, Xin'an Road, and Chaoyang Street for a total length of 2240.01 meters. The SPV is called Inner Mongolia Huawei Municipal Engineering Co., Ltd and is owned by Inner Mongolia Donghao Construction Group Co., Ltd with 75% stake, Inner Mongolia Huawei Construction Engineering Co., Ltd with 15% stake, and state owned Zhalantun City Infrastructure Investment Development Co., Ltd with 10% stake. The project cost amounts to CNY 193.34 million or $ 27.14 million. The project is structured under BOT model for a period of 10 years (including construction). The return mechanism is government payment. After the concession period, the facilities will be transferred to the Zhalantun Housing and Urban-Rural Development Bureau or the designated agency of the Zhalantun People's Government. Financial close was reached on 29 September 2019.