H share Sichuan Expressway Co will team up with New World Infrastructure (NWI) to develop Sichuan's Chengdu Ring Road, at a cost of about two billion yuan (about HK$1.85 billion).
Sichuan Expressway director Yang Kunping said it was planning to participate in the project but declined to provide details, saying talks were still under way between the Sichuan Provincial Communications Department and NWI.
NWI is a strategic shareholder in Sichuan Expressway, acquiring 9.9 per cent of the company when it listed in Hong Kong in September.
Communications department foreign economic department spokesman Yang Fulin said a deal would be signed this month, after a letter of intent was signed by NWI in June.
Construction is expected to take three to four years.
He said NWI intended to be the controlling shareholder of the project with at least a 51 per cent stake, with the remainder held by Sichuan Expressway and its parent Sichuan Highway Development Holding Co, ultimately under the control of the communications department.
