Fujian Expressway to spend 14b yuan on roads
Shanghai-listed Fujian Expressway Development said yesterday it would spend 14.13 billion yuan to expand its two highways to meet the surging traffic flows in Fujian province.
The company plans to double the number of lanes on its Quanxia Highway at a cost of 5.384 billion yuan while its subsidiary will widen the Fuquan Highway on expenditure of 8.746 billion yuan.
The projects aim to add 229 kilometres to the two highways to connect three major cities, namely, Fuzhou, Quanzhou and Xiamen. For the 82km Quanxia Highway, this will be the biggest expansion since it started service in 1997, two years before the 166km Fuquan Highway was opened.
The mainland's rapid economic growth and business activities are generating more road traffic, especially in wealthier provinces such as Fujian, where more residents can afford cars.
To start at the end of this year, Fujian Expressway's expansion projects target completion in 2010. The company projected that the internal return rate on the Quanxia Highway would be 10.44 per cent while that on the Fuquan Highway would be 10.19 per cent. After the expansion, the Fuquan Highway's traffic flow is expected to increase to 33,305 vehicles per day in 2011 from 27,609 per day last year, while daily flow at the Quanxia Highway would rise to 35,033 vehicles from 32,387.
Fujian Expressway said in a Shanghai stock exchange announcement that about two billion yuan of the capital expenditure would come from internal resources. It will seek the balance of the funding from external sources.
Shares of Fujian Expressway rose 5.6 per cent yesterday, closing at 8.11 yuan.