China Merchants Highway (001965.SZ) announced on December 9, according to the notice of the General Office of the Ministry of Transport on standardizing the Toll Collection of the starting Section of the Expressway around the City, and the Circular of the Beijing Municipal Commission of Communications on adjusting the Toll starting and ending points of the Toll roads in our City, and other relevant documents. The company signed a compensation agreement with the Beijing Municipal Transportation Commission ("Beijing Communications Commission") on December 3, 2021 on matters related to the adjustment of the charging starting point and compensation for the Beijing section of the Beijing-Shanghai Expressway (formerly Beijing-Tianjin-Tangshan Expressway). The main contents of the compensation agreement are as follows:
1. From 00:00 on May 6, 2020, the billing start and stop point of Beijing section of Beijing-Shanghai Expressway (formerly Beijing-Jintang Expressway) has been adjusted from "fourth Ring Road-Shibalidian Bridge" to "Dayangfang Toll Station", reducing toll mileage by a total of 5.05km.
II. Scope and amount of compensation: the Beijing Municipal Commission of Communications shall give an one-time compensation of 235.8636 million yuan to the discounted amount of expected income loss caused by the adjustment of the starting and ending point of this billing during the period from 00:00 on May 6, 2020 to 24:00 on September 4, 2029.
Management and maintenance of road sections and facilities: after the entry into force of the agreement, both parties shall begin the preparatory work for the transfer of the road section (the "target road section") at the starting and ending point of billing. In accordance with the relevant regulations, the Beijing Municipal Communications Commission shall identify and check and accept the road sections and facilities to be handed over before the company transfers them. After appraisal and acceptance, if the target road section conforms to the technical grade and standard approved at the time of obtaining the rights and interests of the toll road, the company may go through the transfer formalities with the Beijing Municipal Commission of Communications in accordance with the relevant provisions of the State. If it does not meet the technical grades and standards approved when obtaining the rights and interests of the toll road, the company shall carry out maintenance and maintenance within the time limit determined by the Beijing Municipal Commission of Communications. After meeting the requirements, both parties shall complete the transfer procedures in accordance with the relevant provisions of the State within 15 working days. After the completion of the handover formalities, the target road section shall be vested in the Beijing Municipal Traffic Commission, which shall enjoy and bear the rights and responsibilities of the target road section.
In accordance with the above transfer arrangements, it is expected that the management, maintenance and transfer of road sections and facilities will be completed in 2022 and the related benefits of this agreement will be realized.