Summary of Proposed Investment
Project Number
8530
Company Name
Hansom Investment Limited
Date SPI Disclosed
Jan 21, 1999
Country
China
Industry
Infrastructure
Status
Completed
Sector
Highway Operations (Includes Toll Roads)
Department
Regional Industry - INF Asia & Pac
Environmental Category
A - Significant
Previous Events
Approved : Apr 15, 1999
Signed : May 21, 1999
Invested : Aug 27, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | China: Shanghai Midway |
| Region | East Asia and Pacific |
| Sector |
Projected Board DateFebruary 21, 1999
Company NameShanghai Midway Infrastructure Investment (Holdings) Limited
Technical Partner and/or Major Shareholders
Midway is currently a wholly owned subsidiary of the Narada Group (Narada), a local private Chinese business group. Narada, which was founded in 1991, currently owns and operates businesses in the manufacturing, real estate, commodities brokering, and infrastructure industries. It started its operations in Guangdong Province, but has since established its operations mainly in Zhejiang Province. Narada''s headquarters are in Hangzhou.
Project Cost Including proposed IFC investment
The total cost to implement the Investment Plan is about $85 million over the 1999-2000 period. Of this, about $65 million would be used to acquire new road concessions, while the balance of $20 million would be used to restructure Midway''s Balance Sheet. IFC''s proposed investment is an equity investment of $16 million.
Location of project and Description of site
Currently, all of Midway''s existing concessions are located in Zhejiang Province of China. Of the four concessions to be acquired, three are in Zhejiang Province, while the fourth is in the province of Jiangsu. The roads in Zhejiang are mostly national or provincial highways connecting towns within a county of the province. The proposed road in Jiangsu is in Zhenjiang Municipality and would connect the port of Dagang to the urban area of Zhenjiang.
Description of Company and Purpose of Project
Midway is a holding company, which through its subsidiaries invests in toll roads in China. The company''s assets consist of rights to collect tolls, in partnership with county or provincial government agencies, for road concessions. The company currently owns concessions to a total of about 65 km of highways, and by implementing its Investment Plan, would increase the total length under management to about 212 km. The purpose of the project is to provide Midway with more equity capital so that it may expand its investments in toll road concessions.
Environmental Category and Issues
This is an environmental and social review category A project because of its significant social impacts. IFC''s Environment and Social Review Unit conducted a site visit. Principal social issues are relocation of 595 households and loss of cultivated land affecting in total 8,560 people. The sponsor has prepared a Resettlement Action Plan (RAP). The RAP documents completed, on-going and future social mitigation measures, including land acquisition, compensation, reconstruction, income restoration, monitoring and complaints and grievance mechanisms. The RAP includes an assessment of completed resettlement. The resettlement, including mitigation measures for physical and economic displacement, complies with World Bank policies, specifically with OD 4.30 on Resettlement. Environmental issues include air and noise pollution, sedimentation, drainage, construction waste materials and health and safety. Mitigation measures for environmental impacts are implemented by the municipal authority for each road section, and are in compliance with World Bank policies and guidelines.
The RAP and Environmental Report are available from the Public Information center.
The are from the InfoShop.
| Host country location of environmental documents | City transport Bureau offices in the cities of Jiande, Quzhou and Yong Kang and Village Unit Offices along each sub-project route. |
Date SPI sent to InfoShop January 21, 1999
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact:
Corporate Relations Unit
Telephone: (202) 473-3800
Fax: (202) 974-4384
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
Related ESRS/ERS
