Li's CKI signs deals to build and run two Guangdong highways
Li Ka-shing's Cheung Kong Infrastructure Holdings (CKI) yesterday clinched preliminary agreements to build and operate two highways in Jiangmen city, Guangdong, for a total of 671 million yuan (about HK$624.03 million).
The semi-official Hong Kong China News Agency yesterday reported that CKI would take a 50 per cent stake in the project with the rest held by Jiangmen authorities.
Cheung Kong China Infrastructure general manager Eric Kwan said the company was considering acquiring the expressway between Chengdu and Chongqing in Sichuan province and the 60-kilometre Shantou-Chaozhou-Fenyang expressway in Guangdong province.
According to yesterday's letters of intent signed in Hong Kong, the Jiangmen authorities would sell the operating rights to the 25km long Jiangsha expressway to CKI. The total investment would be 220 million yuan.
The already completed four-lane expressway boasts a daily traffic volume of between 13,000 and 14,000 vehicles. The computerised toll road is expected to ring up 30 million yuan in toll fees this year and 35 million yuan next year.
Another toll road, the Jianghe superhighway, will cost 450 million yuan and is due to be completed in 1998.
The latest agreements follow CKI's rescue late last month of Hopewell Holdings' proposed ring road in Guangzhou.