Zhitong Finance App News, Anhui Wantong Expressway (00995) announced that the company has joined the S24 consortium led by Anhui Traffic Control Group and participated in the public tender for the “S24 Project” for the second phase of the S24 Hangzhou-Hefei Expressway Xuancheng section project with Kaiyuan Road and Bridge Company, Water Safety Construction Company, Traffic Control Construction Engineering and Express Logistics, and received a bid confirmation for the S24 project on the date of this announcement.
After receiving the bid confirmation for the S24 project, the company is expected to establish an S24 joint venture with other members of the S24 consortium as social capital and government funders on behalf of Changgao Expressway Company to implement the S24 project. According to the listing rules, it is anticipated that the establishment of an S24 joint venture (if implemented) will constitute a connected transaction for the company.
The S24 Hangzhou-Hefei Expressway Xuancheng Phase II project is a project promoted by the Xuancheng Municipal People's Government and built using a franchise model (BOT). The Xuancheng section of the Hangzhou-Hefei Expressway starts in Liqiao Town, Xuancheng City, and intersects with the first phase of the Xuancheng section of the Hangzhou-Hefei Expressway. The route intersects with the Ningxuan Expressway and extends northwest. The end point is located at the junction of the two cities of Xuanwu, and is connected to the design end point of the Ma'anshan section of the Hangzhou-Hefei Expressway. The total length of the route is about 30.62 kilometers.
After winning the bid for the S24 project, it is expected that the S24 Consortium (including the company) and Changgao Expressway Company will establish an S24 joint venture to implement the S24 project. The total investment in the S24 project is expected to be RMB 6.567 billion. The total investment of the consortium and government funders in the S24 joint venture will be RMB 1,313 billion, of which: Anhui Traffic Control Group will invest RMB 637 million in cash and hold 48.5% of the shares; the company will invest RMB 26.27 million in cash and hold 2% of the shares; Kaiyuan Road and Bridge will invest RMB 328 million in cash and hold 25% of the shares; Shui'an Construction Company invests RMB 197 million in cash and holds 15% of the shares; Changgao Expressway invests RMB 197 million in cash and holds 15% of the shares; Changgao Expressway invests the people in cash RMB 65.67 million, holding 5% of the shares; Traffic Control Engineering invested RMB 39.4 million in cash and held 3% of the shares; Traffic Control Construction Engineering invested RMB 13.13 million in cash and held 1% of the shares; Express Logistics invested RMB 6.57 million in cash and held 0.5% of the shares.
The second phase of the S24 Hangzhou-Hefei Expressway Xuancheng section project is an important new interprovincial channel connecting Anhui and Zhejiang. The establishment of an S24 joint venture with other members of the S24 consortium and Changgao Expressway Company will enable the company to participate in the S24 project. By participating in the S24 project, the company will further expand and enhance the highway business layout, enhance regional transportation capacity, enhance the company's overall profit level, and strengthen its competitiveness in the regional road network. The S24 project also enables the company to further utilize its experience and advantages in toll road operation and continuously optimize the highway asset layout. This move is in line with the company's development strategy.