Business & Finance
Business and Finance
Business and Finance 
Wed, July 15, 2009
Tue, July 14, 2009
China Infrastructure Investment Corporation: China Infrastructure Investment Sees Continuing Important Role for Private Investm
BEIJING--(Marketwire - July 14, 2009) - China Infrastructure Investment Corporation (
According to the Company, a senior spokesman for the Chinese Transportation Ministry recently commented that of the more than $1 trillion expected to be spent for highway construction, the Chinese government is focused on three key areas: a) the toll road network in China East; b) the main highway in China Central; and, c) construction of inter-county roads in rural areas nationwide.
As part of this plan, a senior Ministry of Transportation official recently stated that the government plans to complete a total of 80,000km toll roads nationwide which will connect 319 cities with populations of more than 200,000 each.
In doing so, this official commented that China will carry on its current "diversified, multi-channel" construction financing approach, under which bank loans will keep their leading role, but foreign investment and private capital investment in the toll road infrastructure may increase. He noted further that the government recognizes the importance of toll collection to repay loans and it is very unlikely that China will abolish toll collection any time soon.
Up to One Third of Highway Financing May Come From Private and Foreign Investors
Mr. Li Xipeng, Chairman and CEO of China Infrastructure, commented, "The estimate that bank loans will represent 60% to 70% of the substantial financing required to build the roads, with another 6% to 7% coming from direct grants from the central or local government is one that is in line with our thinking. It has been our view that approximately 25% to one third of all financing will be needed from foreign or private investors such as ourselves."
He continued, "We are very pleased with the opportunity this provides to construct toll roads that offer safe, well run highways which can attract and build commerce and also are pleasing to the local community as well as the growing number of ordinary drivers."
About China Infrastructure Investment Corporation:
China Infrastructure Investment Corporation, incorporated in Nevada, USA and headquartered in Henan Province, China, focuses on investing in, constructing, operating and managing infrastructure development projects in China. The Company currently operates the Pingling Expressway, a 106-kilometer (66 miles) dual carriageway four-lane toll road in the central province of Henan. The Expressway is an important passage from the northwest region to the southeast coastal region of China. The Company is actively pursuing additional acquisition and development opportunities in infrastructure projects, including expressways, electricity, water supply and bio fuel facilities. For more information, please visit [ www.ciicusa.com ].
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995:
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company's operations, financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, but not limited to, the impact of alternative new routes and modes of transportation, pricing and new technology; changes in consumer preferences, and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of maintenance and construction, and other factors such as those discussed in the Company's reports filed with the Securities and Exchange Commission. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
No securities regulatory authority has either approved or disapproved the contents of this news release.