1 Project General

　1.1 Project No.:103

　1.2 Project Contact Unit: Nanning Urban Construction Investment and Development General Co.

　1.3 Negotiating Representative: Yang Jiahong, Zhang Zhngwei

　　Tel:+86-771-2189162，2189178

　　Add: No. 0, Jiangnan District, Nanning 530031

　1.4 Project Site: Nanning

　1.5 Total Investment: USD358.24million

　1.6 Anticipated Economic Benefits: The total length of the project is 41km and the project was completed and open to traffic in July 1st, 2002. It is expected to recover the investment by charges imposed on vehicles using the express ring road from April 1st, 2004 on an annual basis. The income from the charge preliminarily calculated is 230 million yuan annually.

　1.7 Pattern of Cooperation: Transfer of Management Right

　1.8 Progress of Project Preparation: According to the requirement of the city master plan of Nanning, the total lengthy of Nanning Express Ring Road is 41km going around the city zone of Nanning. The project was completed and open to traffic on July 1st, 2002 except the Huluding Bridge which is now underway.

2 Project Scope, Size and Capital Compositions

　2.1 Project Scale and Size: Nanning Express ring Road consists of East Ring Road (which includes the Xiangzhu Avenue and Zhuxi Avenue), South Ring Road (which includes the Huluding Bridge, Baisha Avenue and Nanzhan Avenue), West Ring Road (including Shajing Avenue and Qingchuan Bridge) and North Ring Road (including Xiuxiang Avenue) with a total length of 41km. The road is designed in six carriageways and eight carriageways in some local sections with reinforced concrete pavement. The planned total investment is 2.9663 billion yuan. Presently, the project is completed and open to traffic except the Huluding Bridge project on the South Ring Road which is now at the stage of land acquisition , dismantling and removal.

　2.2 Capital Compositions：The planned total investment is RMB 2.9663 billion yuan. Of the total amount ,

　(1) loan from the National Development Bank accounts for 900 million yuan with a loan repayment period of 9 years with an annual interest rate of 6.21%, the total amount of capital plus interest to be paid to the Bank in 9 years being RMB 1.2136831 billion yuan;

　(2) loans from other professional banks account for RMB 664 million yuan with a loan repayment period of 9 years with an annual interest rate of 6.21%, the total amount of capital plus interest to be paid to the Bank in 9 years being RMB 868.4537 million yuan;

　(3) the national debt accounts for 150 million yuan with a loan repayment period of 9 years with an annual interest rate of 5%, the total amount of capital plus interest to be paid to the Bank in 9 years being RMB 196.1867 million yuan;

　(4) investments from other sources account for 1.2523 billion yuan.

3 Brief Introduction of the Project Contact Unit

　　Founded in July of 1995, Nanning Urban Construction Investment and Development General Co. is subject to the leadership of the Municipal Government of Nanning and was merged with Guangxi Nanning Airport Expressway Construction Co., Ltd. in October, 1999, becoming a modern state-owned enterprise with sole proprietorship. Its registered capital is RMB 160 million yuan with a total asset of RMB 3.1 billion yuan. The present General Manager and legal representative of the company is Gao Xin.

　　Under the direct leadership of CPC Nanning Committee and the Municipal Government of Nanning, Nanning Urban Construction Investment and Development General Co. takes the lead in adopting the management mode of Owner Responsibility System in raising funds for the project under construction, project preparation at the early stage, management of the project during the construction and assume the creditor’s rights and debts.

　　Through a few years of practice Nanning Urban Construction Investment and Development General Co. has gained a lot of successful experience in management and operation of construction projects. In the future, the company intends to follow the international practices and modern management mode and boldly introduce the concept of city operation in their work. By paid utilization of government assets and through urban comprehensive development, the company is trying to promote the accumulated increment and the reasonable floating increment of the urban assets so as to keep increasing the urban construction development fund.