Coli to invest $1.4b in infrastructure projects
China Overseas Land & Investment (Coli) is to invest about HK$1.4 billion in toll roads, bridges and power plant projects in Shandong and Guangxi provinces.
The property and construction company said it had teamed up with Shandong Province Highway Corp to invest in and operate a bridge and two toll roads, involving a total investment of US$180 million.
The projects include Huang He Bridge, the Ji Nan-Dezhou section of National Highway 104 and Ji Nan-Dezhou section of Provincial Highway 001.
Coli said it signed an agreement last Friday to invest a billion yuan (about HK$929 million) to buy a 67 per cent stake in the projects.
Its estimated rate of return on the investment is about 15 per cent and the operating rights permit lasts for 23 years.
Coli said it signed an agreement last month to invest in the Wuzhou Jingnan hydraulic power plant in Guangxi province's Wuzhou city.
Total cost of the project was US$107 million of which Coli would invest US$60 million for a 56 per cent stake.
The Jingnan plant has a capacity of 69,000 kilowatts.
Coli said it expected returns of about 15 per cent on the investment, with Wuzhou Electrical Industrial Bureau to buy all electricity generated by the plant.
Yesterday, Coli also announced the arrangement of a US$160 million loan facility to finance its infrastructure, property and construction projects in Hong Kong and China.
