Brief Profiles Of Investment Projects
For China's Agenda 21

 

Title Industrial Estate for the Telecommunications Industry
Type New project of land development for an industrial estate
Description
The project is located in the East Lake Hi-Tech. Development Zone in Wuhan, which is designated as a national development area. The layout of the estate, comprising 40 ha., will include one training, communication and exhibition centre, one service area, four tele-communication areas, one related industry area and an area for infrastructure. Access roads will be constructed throughout the estate and utilities for serving the industrial sites and other facilities will be installed including water supply, drainage system, electrical network, heating and gas supply system. Some factory buildings and office buildings will be constructed. Industrial sites and building space will be leased or sold.
Rationale
The investment environment in the East Lake Hi-Tech. Development Zone is very attractive. There are a many well-known companies operating in the area, such as NEC of Japan, Philips of Netherlands, Westing of USA, which have already established joint venture companies. There is considerable interest by other companies for investment in the Zone. However, the developed land and factory buildings are not adequate to meet the demand. The project should prove to be highly profitable and also bring a potential economic benefit to the region and the country.
Outputs
Developed industrial estate with well constructed roads, heating and gas supply system, electricity supply network, drainage system and water supply system; factory and office buildings for sale or leasing; some utility facilities.
Location East Lake Hi-Tech Development Zone, Wuhan city, Hubei province
Available Information Pre-feasibility Study
Total Investment (US$)

11.2 million

Foreign Currency (US$)

Financing

Co-operation Sought

Total Equity (US$)

3.18 million

Joint Venture

Of which Equity Foreign Partner (US$)

1.18 million

Cooperation

Loan (US$)

8.02 million

Others(specify) (US$)
Indicators of Viability IRR: 53%; Return on Investment: 30.8%; Pay-back Period: 3.6 years

INFORMATION ON SPONSOR

Name Construction and Development Corp. of Wuhan Tel +86-27-7803045
Address Wuchang district, Wuhan city, Hubei province Fax +86-27-7803044
Annual Turnover (US$) 1993 1994 1.6 million 1995 4.4 million
Year of Establishment 1992 No. of Employees 40 Ownership State
Fixed Assets (US$) Registered Capital (US$) 0.3 million
Land (ha.) 33.3 Building (m*m) Equipment (US$)

 


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