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Circular Economy Demonstration Zone Rural Land Purchase and Reserving Project of Siping City
2016/11/29     Source:

 

1. Introduction to the Project

1.1 Project Background

Siping Circular Economy Demonstration Zone is the industrial concentration area established with the approval of Jilin Provincial Government. The planned area is 50 km2. It is located in the north of Tiexi District, Siping City. Demonstration Zone is designated to be the only pilot institution for the development of circular economy by Jilin Provincial Government in 2005. It is included in the “11th Five-Year Plan” of Jilin Province. It begins to enjoy the treatments of provincial development zone since 2006. It is included in the second batch of national circular economy pilot units in December 2007. Due to capital problems, infrastructure seriously lags behind. To build Demonstration Zone into an open, multi-functional and modern new city and effectively improve the production and living conditions of farmers in the region, Siping City Circular Economy Demonstration Zone Management Committee proposes the rural land purchase reserve construction project.

1.1.1 Significances for project construction

Rural land purchase and reserving construction project of Siping Circular Economy Demonstration Zone conforms to the requirements of the overall planning. Its construction can not only improve the urban living conditions, rationalize the layout of city, and provide convenience for the production and living of residents, but also beautify the urban environment and promote economic development. It is of great significance to accelerate the economic development of circular economy demonstration zone, promote urbanization, improve agricultural production conditions and promote the good and fast economic and social development of this region. Upon the completion of the project, it can accommodate the population of 60,000 to 80,000, which provides enormous space for the development of Siping City when its population reaches 1 million.

1.1.2 Principles of project

Adhere to the principle of “planning in advance, government guidance and market operation, project driven”, strengthen the construction of infrastructure projects and land development and implement the integration of project financing and construction. The land management income shall be preferentially used to repay the loan. In strict accordance with the principle of “arrangement first, demolition second”, rural land remediation shall be implemented. The farmers whose house is demolished shall be properly arranged in accordance with the land requisition compensation and resettlement program to ensure that the project can be started as soon as possible and implemented smoothly. The use of loan funds shall be strictly supervised. All projects using the loan funds issued by Agricultural Development Bank shall execute and implement the project owner responsibility system, public bidding system, project supervision system and lifelong quality responsibility system to ensure that loan funds are used for their special purposes efficiently and safely in order to generate the greatest benefits.

1.2 Construction Site of the Project

Rural land purchase and reserving construction project for Siping Circular Economy Demonstration Zone is located in Phase 1 Demonstration Zone. It borders Fuxing Road in the south, North Xinhua Street (Sili Road) in the north, Xingping Street in the west, and North Xinhua Street in the east. The planned total floor area is about 4,541,700 m2, where, the residential floor area is 1,647,200 m2, the commercial floor area is 265,400 m2, the office area is 298,000 m2, the floor area of industrial land (emphasis on agricultural industrialization projects) is 1,442,100 m2, and the floor area for road construction is 889,000 m2. The construction scale:

The purchased and reserving land area of this project is 4,541,700 m2. The demolished residential area is 240,000 m2, and the length of planned road is 17.79 km.

1.3 Total Investment of the Project and Capital Raising

1.3.1 Total Investment of the Project

The total investment of this project is 920,271,000 Yuan, where, 318,747,000 Yuan is invested into road construction, 192 million Yuan is invested into farmer house demolition, and 409,524,000 Yuan is invested into land purchase and reserving (total working investment).

Table 1: Summary Table of Total Investment of the Project     Unit: RMB10,000

 

 

 

No.

Expense Name

Amount of Investment

Proportion of Total Investment %

Remarks

1

Construction investment

51074.7

55.4

 

2

Interest incurred in construction period

 

 

 

3

Working capital

40952.4

44.6

 

 

Total investment of the project (1+2+3)

92027.1

100

 

Calculation of road construction investment:

List of Planned Road Construction in Demonstration Zone

SN

Name of road

Starting point

Length

Standard (width)

Floor area

1

Yingbin Street

Fuxing Road--- No.4 Road in Demonstration Zone

2380m

80m

190400

2

Yingbin Street

No.4 Road in Demonstration Zone --- North Xinhua Street

330m

80m

26400

3

Yongbin Road

Xingping Street --- North Xinhua Street

1700m

80m

136000

4

Fuxing Road

Xingping Street---North Xinhua Street

1700m

80m

136000

5

No.1 Road in Demonstration Zone

Xingping Street---North Xinhua Street

1700m

30m

51000

6

No.2 Road in Demonstration Zone

Xingping Street---North Xinhua Street

1700m

30m

51000

7

No.3 Road in Demonstration Zone

Xingping Street---North Xinhua Street

1650m

40m

66000

8

No.4 Road in Demonstration Zone

Xingping Street --- Yinbin Street

900m

30m

27000

9

Weihai Road

Xingping Street---Yinbin Street

950m

30m

28500

10

Ningbo Road

Xingping Street---=Yinbin Street

950m

40m

38000

11

Youyi Street

Fuxin Road --- No.4 Road in Demonstration Zone

2380m

40m

95200

12

Xincai Street

Fuxin Road --- No.3 Road in Demonstration Zone

1450m

30m

43500

Total

 

 

17790m

 

889000

The total investment is estimated to be: 318,747,000 Yuan

① Land purchase cost: the floor area of road is approximately 889,000 m2, compensation fee for land purchase calculated at 120 Yuan per m2, i.e., 889000 × 120 = 106.68 million;

Road engineering cost: 6110m × 12000 Yuan/m +4980m × 8000 Yuan/m +6700m × 6000 Yuan/m = 153.36 million Yuan; (including the expenses of medians, green belts, lighting engineering, transport facilities and others)

Water distribution network: 17790 m × 900 Yuan/m = 16.011 million Yuan;

Drainage network: 17,790 m × 500 Yuan/m = 8.895 million Yuan;

Rainwater pipe network: 17,790 m × 900 Yuan/m = 16.011 million Yuan;

Supply line: 17,790 m × 1000 Yuan/m = 17.79 million Yuan;

Note: This project does not include heat supply and gas network. The project of heat supply and gas network shall be invested by heating supply and gas companies.

The northern section of Yingbin Street, Yongjun Road and Fuxing Road are designed to be the trunk road network of city. The total length of road is 6110 m. The road is of three-carriageway from the view of cross section. The width of green line is 80 m, the width of red line is 46 m and the width of motor vehicle lane is 15 m, the width of 2 auxiliary lanes is 6.5 m. the width of 2 passenger lanes is 3.0m and the width of 2 separator lanes is 5.0m and the width of 2 green belt is 1m.

For Ningbo Road, Youyi Street and No.3 Road in Demonstration Area are the urban sub-trunk roads with the standard design width of red line of 40 m. The total length is 4980 m and the road is of single carriageway from the view of cross section.

Weihai Road, Xincai Street, No.1 Road in Demonstration Area, No.2 Road in Demonstration Area and No.4 Road in Demonstration Area are the urban sub-trunk roads with the standard design width of red line of 30 m. The total length is 6700 m. The road is of single carriageway from the view of cross section.

The said roads are also equipped with water supply network, drainage network, power line, greening and illumination.

The diameter of water supply pipe network is DN400. The pipes are made of nodular cast iron.

Drainage network adopts rain and sewage separation system. The diameter of sewage pipe network is d400 ~ d600. The diameter of rainwater pipe is d800, while the supporting inspection well is constructed.

Overhead 10kV power line is paved along one side of road.

(2) Demolition of residence of farmer:

240,000 m2 × 800 Yuan/m2 = 192 million Yuan

(3) Land purchase reserves (excluding farmers’ residences land and roads):

3,412,700 m2 × 120 Yuan/m2 = 409,524,000 Yuan

1.3.2 Financing

The total investment of this project is 949,071,000 Yuan. It is planned to apply for bank loan of 600 million Yuan. The balance of 349.071 million Yuan shall be resolved by the project undertaking organization.

1.4 Financial Analysis and Social Evaluation

1.4.1 Main Financial Indexes

Table 2: List of Major Indexes for Forecast of Economic Benefits

 

 

 

 

No.

Name

Unit

Index

Remarks

1

Sales income

RMB10,000/a

91370.315

Normal year

2

Total profit

RMB10,000/a

15851.68

Normal year

3

FIRR of all investments

%

12

After income tax

4

FNPV (Ic=10%)

RMB10,000

6203

After income tax

5

Period for recovery of all investments (after tax)

a

5

Including 2 years of construction period

6

Rate of return on investment

%

13

After income tax

Note: "RMB10,000" in the Table shall be RMB.

List of Land Parcel Transfer in Planning Area

Land number

Area

Land use nature

Average transfer fee (land purchase and transfer fee excluded)

Estimated transferable amount

1

214200

Residence

350 Yuan /㎡

74.97 million Yuan

2

154800

Residence

350 Yuan /㎡

54.18 million Yuan

3

146200

Office

450 Yuan /㎡

65.79 million Yuan

4

151800

Office

450 Yuan /㎡

68.31 million Yuan

5

306600

Residence

350 Yuan /㎡

107.31 million Yuan

6

196800

Residence

350 Yuan /㎡

68.88 million Yuan

7

155400

Residence

350 Yuan /㎡

54.39 million Yuan

8

275400

Residence

350 Yuan /㎡

96.39 million Yuan

9

188600

Residence

350 Yuan /㎡

66.01 million Yuan

10

155400

Residence

350 Yuan /㎡

54.39 million Yuan

11

500000

Industry

150 Yuan /㎡

75 million Yuan

12

151800

Industry

150 Yuan /㎡

22.77 million Yuan

13

139400

Industry

150 Yuan /㎡

20.91 million Yuan

14

125400

Industry

150 Yuan /㎡

18.81 million Yuan

15

133000

Industry

150 Yuan /㎡

19.95 million Yuan

16

95000

Industry

150 Yuan /㎡

14.25 million Yuan

17

88400

Industry

150 Yuan /㎡

13.26 million Yuan

18

117300

Industry

150 Yuan /㎡

17.595 million Yuan

19

91800

Industry

150 Yuan /㎡

13.77 million Yuan

20

66500

Business

450 Yuan /㎡

29.925 million Yuan

21

59500

Business

450 Yuan /㎡

26.775 million Yuan

22

78200

Business

450 Yuan /㎡

35.19 million Yuan

23

61200

Business

450 Yuan /㎡

27.54 million Yuan

Total

3652700

 

 

1.046365 billion Yuan

In summary, the estimated land transfer income land of the land purchase and storage development and construction project is 837,092,000 Yuan (calculated at 80% of local-level income).

In addition to the said fixed incomes, the project can get the benefits from land development and “PPP mode” with the Government.

1.5 Cooperative Ways

Cooperation

1.6 Construction Site of the Project

Siping Circular Economy Demonstration Zone

1.7 The On-going Condition of Project

The cooperation proposal has been prepared.

2. Introduction to Partner

2.1 Basic Conditions

Name: Siping Circular Economy Demonstration Area

Address: Siping Circular Economy Demonstration Area

2.2 Overview

Siping Circular Economy Demonstration Zone of Jilin Province was established with the approval of Jilin Provincial Government in 2005. It is included into the second batch of national circular economy pilot projects in December 2007. It enjoys the national circular economy industrial policy, financial supports and green approval channel. Demonstration Zone is the only pilot institution for the development of circular economy in Jilin Province. It is included in the key development projects of “11th Five-Year Plan” in Jilin Province. Demonstration Zone is located in the northern suburb of Tiexi District, Siping City, Jilin Province. The planning area is 50 km2. It mainly develops the efficient use and recycling of resources, by abiding by the principle of “reduction, reuse and recycle”. A new pattern of circular economy demonstration zone featured with “low consumption, low emission and high efficiency” shall be formed.

2.3 Contact Method

Investment Promotion Department of Project Location: Siping Circular Economy Demonstration Area Management Committee

Address: Siping Circular Economy Demonstration Area

Zip Code: 136000

Contact Person: Wu Zhengang

Tel: 0434-7783009

 

Contact Person of Project City (Prefecture):

Contact Unit: Economic and Technical Cooperation Bureau of Shiping City

Contact Person: Wang Hongyan

Tel: 0434-3266807  13604348567

E-mail: 695740353@qq.com

Website of City (Prefecture): http://investsiping.com

 

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