China State Construction International (CSCI) (03311) said it entered into a cooperation agreement with China Construction Fourth Engineering Division Corp. Ltd. (CCFED) and China Construction Third Engineering Bureau Group Co. Ltd. (CCTEB), both a subsidiary of intermediate holding company China State Construction Engineering Corporation Limited, to form a joint venture company.
The JV shall have a registered capital of Rmb1,776.5 million, of which CSCI will contribute Rmb888 million to hold 50% interest in the JV.
The JV will be established for the purposes of investing into the Public-Private-Partnership (PPP) project in relation to construction, operation and management of the expressway connecting Xiushan (Qianyujie) and Yinjiang in Guizhou Province. The expressway is a two-way four-lane expressway with a total length of 52.68 kilometres, a designed speed of 80 kilometre per hour and a land width of 24.5 metres with 34 bridges and 12 tunnels. The construction period is expected to be three years.