China New Town Development Company Limited has signed a PPP agreement with Danyang Investment and Jiangsu Municipal Development Company Limited (Danyang Municipal) to develop the Danyang Water Engineering project.

The company agrees to contribute in aggregate additional capital of RMB200 million (US$32.6 million) in form of registered capital to Danyang Tiansheng New Town Development and Investment Company Limited, the project company.

The project's total investment shall amount to about RMB1.6 billion (US$261 million). On top of the enlarged share registered capital of RMB546 million (US$89 million), the Project Company shall be strengthened by a dedicated project financing from China Development Bank (CDB) amounting to no less than RMB1.12 billion (US$182.7 million).

The cooperation period of the project spans over 15 years, among which the development period with CNTD's participation spans over 2 years and the maintenance period lasts for additional 13 years.

Commenting on the launch of the Company's first ever PPP project, the spokesperson of China New Town Development says,

"This project is another solid proof showing our controlling shareholder's full support to the business development of the company. CDB does not only leverage its unparalleled financing capacity to support the project, but also opens its quality project resources to the company, so that the company is able to participate in such a lucrative and regional priority project. We believe that capturing the quality project resources which CDB opens to the company will significantly reduce the investment risks and substantially enhance the investment return of the group, with a view towards greater values for our shareholders."

Located at the greater Shanghai econonmic corridor of the Yangtze River Delta, Danyang is among the most rapidly growing and fiscally sound economies in the Jiangsu Province.