Hong Kong--(BUSINESS WIRE)--Freetech Road Recycling Technology (Holdings) Limited (“Freetech”, or the “Group;” stock code: HK.6888), a leading asphalt pavement maintenance (the “APM”) integrated solution provider, announcedthat the Group had officially initiateda series of new public roads construction projects in Shanglupian Districtof Jurong City, Jiangsu Province using thepublic–private partnership (“PPP”) model.
PPP is a project funding model promoted by the PRC government. In the field of public infrastructure and construction, this model allows and encourages the privately-owned companies and private capital to cooperate with the government and get involved with their own resources, which can realize win-win situation.
The PPP project was launched in Jurong City, Jiangsu Province, which included investing RMB 80 million to setup a PPP Company with a registered capital of RMB 100 million, with 80% and 20% owned by the Group and JV Partner respectively. The PPP Company will be responsible for a series of new public roads construction projects in Shanglupian Districtandtheroad management and operation for a period of 6 years after the completion of the construction. Starting one year after the construction of the new roadsis completed, the Jurong Municipal City Public Facilities Service Centre will pay 20% of the total construction cost settled by the PPP Company in respect of the New Roads plus the interest based on the agreed rate of return to the PPP Company each year, until the total construction cost is fully settled.Currently, the new road construction project is actively under preparation.
Since its listing on the HKEX in 2013, the Group has not only constantly exploredbusiness chances in the road maintenance and construction industry, but also performedin line with the opportunities of public-private-partnership encouraged and promoted by the PRC government to gain more experience in PPP projects. The Group believes it will enhance its financial performance and generatemore long-term and stable returns.
Contact:
Freetech Road Recycling Technology (Holdings) Limited
Vicky Xue, +852-2330 9600
Fax: +852-2363 7987