HONG Kong property giant New World Development is to invest $20 billion in energy, infrastructure and transportation projects in Guangzhou over the next 10 years. However the firm's managing director Henry Cheng Ka-shun said no fund raising would be needed to finance its projects in China. ''[This is because] some of the existing projects in China will generate profits which will be re-invested into other mainland projects,'' he said. The company yesterday signed two joint venture contracts in Guangzhou, involving the Guangzhou Nanhu Recreational and Tourist Area Development Project, and Dongshan District Old Town Development. The Nanhu Recreational project, which will involve investment of $600 million over three years, covers a total site area of 15 square kilometres. The other shareholders in the project, apart from New World, are China Travel Services and Guangdong Investment. Development in the Nanhu Recreational and Tourist Area will include a world-class theme park, shopping and entertainment complex, an international exhibition site, botanical gardens and amusement park. The company's subsidiary, New World (China), will also form a joint venture with the Dongshan District Government to participate in redevelopment of the old town and carry out modernisation of industry. Initial investment in the project is about $200 million, and the first phase of development will cover 20,000 sq m. Mr Cheng said the company had no plans to sell off its subsidiary to finance its projects in China. He said there would be a contribution of between $250 million and $350 million from its existing projects in Guangzhou next year, including Guangzhou City Northern Ring Road, Zhujiang Thermal Electricity Power Station and some other property projects. ''We will maintain our investments in China at between 20 and 25 per cent of the company's total assets, he said. New World Development yesterday celebrated the opening of the Northern Ring Road, the start of work on the generation of Zhujiang Power Station (Phase I) and the foundation laying ceremony of Area No 2 Fangcun District development in Guangzhou. The Northern Ring Road is part of the City Ring Road system of Guangzhou. The 22-kilometre highway is jointly constructed and operated by New World Development and Guangzhou Freeway Company. Zhujiang Power Station (Phase I) comprises two 300-megawatt coal-fired electricity power plants. Guangzhou Fangcun district project is a property development undertaken by New World Development and the Fangcun District Government. The project's total value is estimated at five billion yuan (about $6.7 billion) and covers a total area of about 527,000 sq m. The Cheng family is also planning to form a joint venture with the French firm Lyonnaise Dumez and the Guangzhou City Government to establish a water supply company in the south of Guangzhou. The total investment will be about 1.5 billion yuan, and the Cheng family and the French company each account for 25 per cent of the venture, the rest coming from the local government. The water supply project will start its construction next year and it is expected to be completed in three years.