Gelonghui September 14?Zhejiang Shanghai-Hangzhou-Ningbo (00576.HK) announced that recently, the company and China Merchants Highway Network Technology holding Co., Ltd. are the only two shareholders of the company's non-wholly-owned subsidiary, Jiaxing Chajiasu Expressway Co., Ltd. ("Zhajiasu Company"). And on behalf of Zhajiasu Company, entered into an agreement with Zhejiang Highway and Transportation Management Center and Jiaxing Traffic Engineering Construction Management Service Center for the investment and implementation of the reconstruction and expansion project of Zhajiasu Expressway (South Lake Interconnection to Zhejiang-Jiangsu Boundary Section). Accordingly, Zhajiasu Company, as the designated project company to implement the project, will timely enter into a franchise agreement with Zhejiang Highway and Transportation Management Center and Jiaxing Traffic Engineering Construction Management Service Center to obtain the franchise for investment, financing, construction, operation and management of the project.
The project involves the reconstruction and expansion of Zhajiasu Expressway (Nanhu Interconnection to Zhejiang-Jiangsu Boundary Section), starting from Nanhu Interconnection in Jiaxing City to Zhejiang-Jiangsu Boundary, followed by Changtai Expressway Jiangsu Section, with a total length of about 25.241 kilometers. For the avoidance of doubt, the scope of work of the project does not include civil works of about 4.385 km on some sections of the road, but Chajasu will be responsible for its operation after the completion of the project.
According to the franchise agreement, Zhajiasu is responsible for the financing, construction and implementation, operation and management, maintenance, debt repayment and asset management of the project, and enjoys the right to charge for vehicles, the right to operate service facilities and the right to advertise during the charging period. The total investment in the project is about 8.134 billion yuan, including civil engineering investment on specific road sections to be undertaken by the government. The total investment is subject to the estimated project budget approved by the Development and Reform Commission of Zhejiang Province. The franchise period of the project includes the construction period and the charging period. The estimated construction period of the project is 42 months. The charging period will start from the delivery date of the project and is expected to be 25 years (300 months), subject to the approval of the people's Government of Zhejiang Province.