1.Background     Tianjin stands in the middle of Around Bohai Bay, borders on the Bohai Sea in the south. The special geographic location makes Tianjin the important transport hub in the northern China. Being the economic center and modern port city, Tianjin will make effort to modernize the transport to benefit the provinces around and inside Tianjin.     According to the strategic goal of Tianjin economical development during the 10th Five-Year Plan period, Tianjin municipality works out a transport construction plan. During the five years, five expressways will be built. They are Jin-Ji Expressway (104 km), Tang-Jin Expressway (south section of Tianjin, 66km), Jin-Jin Expressway (east section of Tianjin, 37km), Tianjin section of the newly-built Jing-Hu Expressway (57km) and Jin-Jin Expressway (west section of Tianjin, 38km). Tianjin expressways will transform from frame style to the net style in the ten years in order to meet the demand of economy development.     2.The necessity of the project and marketing forecast     There is only one main highway of second-class, Jinwei Highway, which connected Tianjin urban districts to Baodi county, Ji county and Chengde area in Hebei province. The standard is the second class. This highway is used for the travel from urban districts to the scenic spot in Ji county and the transportation of 90% building materials needed in Tianjin city and the south of Tianjin. The daily traffic is up to 15000 automobiles (middle-type), and is overloaded. The surface of the highway is seriously damaged before the renovation. Since 1998, Tianjin Municipal Engineering Bureau has made the effort to build and renovate the related branch lines of this highway. Three branch lines will come into construction as one project, including renovation of Jiuyuan Highway and Jiwei Highway, the construction of Jin-Ji Expressway.      According to the result of feasible study, the forecast of transportation flow of three highways are as follows:         Year    Jinwei Highway    Jiuyuan Highway    Jin-Ji Expressway       Remarks          2004         4824               1833               15165          middle-model vehicles /day          2014         7415               3429               28696          middle-model vehicles/day         2024         15639              5325               40154          middle-model vehicles/day      3.Construction scale and standard       (1)Construction of Jin-Ji Expressway     The Expressway starts from Xuzhuangzi (the crossing of Jinzhong Road and Out Circle), connects Jinzhong Road and ends the place 3 km from the south Ji County. It is next to Bangxi Highway. Along the expressway are Dongli District, Beichen District, Ninghe County, Baodi County and Ji County. The total length is 104 km. It is two-way and four-lane, the width of the roadbed is 28 meters, and the available speed is 120km/h. There are 7 cross, 12 seperating high cross, 30 large or middle type bridge, 296 culverts and 1 service station.       (2)Renovation of Jiwei Highway     It starts from the Out Circle and ends Bangxi Highway of Ji County. The length is 96 km. The renovation will carry on the base of the second-class standard.       (3)Reconstruction of Jiuyuan Highway It starts from Jiuwangzhuang Bridge in the north and ends Jingjin Highway (in Langyuan). The length is 80 km, of which 8.5 km is newly built and the rest is reconstructed. The reconstruction is carried on the base of the second-class standard. The total investment is 5.5 billion yuan(excluding priced old-parts of Jiwei Highway and Jiuyuan Highway). The investment of Jinji Expressway is 4.74 billion yuan, the investment of Jinwei Highway reconstruction is 0.52 billion yuan and the investment of Jiuyuan is 0.24 billion yuan.     4.Financial and Economical Analysis     The financial analysis is based on the following charges:     The charge of Jinji Expressway:     A-model vehicles 0.71 yuan/vehicle/km     B-model vehicles 0.95 yuan/vehicle/km     C-model vehicles 1.43 yuan/vehicle/km     D-model vehicles 1.91 yuan/vehicle/km     There is one charge station every 40 km along the Jinway Highway and Jiuyuan Highway. The charge is as follows:     A-model vehicle 1 yuan     B-model vehicle 5 yuan     C-model vehicle 10 yuan      D-model vehicle 15 yuan     E-model vehicle 20 yuan     The internal rate of return is 19.2%, the net present value of the year 2004 will be 27.472 million yuan and the accumulated present value of the year 2022 will be 163.343 million yuan. The period of recovery is 15.4 years. The project has a good economical earning.      5.Progress of the project     (1)The reconstruction of Jiuyuan Highway went into operation in Oct. 1998, completed in July 1999, and has run into operation.     (2)The reconstruction of Jinwei Highway went into operation in July 1998, completed in Oct. 2000, and has run into operation.     (3)The construction site of Jin-ji Expressway has already taken over for use in the year 2000. The construction of Jinwei Highway went into operation in the year 2001, and planned time for completion is the year 2003. The work period is 3 years.     6.Pattern of investment     The project is planned to invest by the cooperation, the 10% of the total with the rest 90% by introducing investment. The part invested by the proprietor is planned to raise funds by subsidiary of the Transportation Ministry, bank loan and their own capital.      Jinwei Highway and Jiuyuan Highway have already charged, the investor can invest 90% of the total funds (including renovation payment and evaluated price of the old highways), and participate in the management and share the profit.      The cooperative period of the project is 30 years (including 3 years of construction).