For the first phase of the NeoPark infrastructure project, with a total investment of RMB 4.07 billion, Hefei received RMB 2.45 billion in funding through a government bond issue.
(NeoPark rendering. Image credit: NIO)
Hefei, Anhui province, where NIO China is headquartered, got part of the funding for the construction of NeoPark through a special government bond issue, according to an announcement.
For the RMB 4.07 billion Xinqiao Smart Electric Vehicle Industrial Park (NeoPark) (Phase I) infrastructure project, Hefei applied for an RMB 2.45 billion special government bond issue for it, according to an announcement issued today by the city's Finance Bureau.
As of the end of March, the bonds for the project were fully issued and the funds will be used for the construction of the project, including the plants and the park's supporting infrastructure, according to the announcement.
Upon completion, the project will have R&D, manufacturing and supporting services and is expected to bring in social capital of over RMB 30 billion in investment, according to the announcement.
The park plans to introduce more than 30 core suppliers in the fields of batteries, electric drives and stamping parts, and can accommodate more than 10,000 R&D personnel and 40,000 skilled workers, the announcement said.
R&D in the fields of vehicles, core components and autonomous driving will be carried out here, and the future production of each electric vehicle (EV) is expected to save RMB 3,000 yuan in logistics costs, according to the announcement.
The overall annual production capacity of the project will reach 1 million vehicles and 100GWh/year of battery capacity, with an expected annual output value of over RMB 500 billion, the announcement said.
NeoPark is an electric vehicle industrial park jointly promoted by NIO (NYSE: NIO, HKG: 9866) and the Hefei municipal government.
On April 29, 2021, the Hefei Municipal Government and NIO jointly announced the official start of construction of NeoPark. The park covers an area of 16,950 mu (11.3 square kilometers) and is expected to have an annual capacity of 1 million vehicles and 100 GWh of batteries, with an upfront investment of RMB 50 billion.
Hefei's goal is that NeoPark will have an annual output value of over RMB 500 billion upon completion and bring together more than 50,000 talents from around the world to become one of the world's leading gathering places for the intelligent EV industry chain.
Previously available information did not reveal who will bear the cost of NeoPark construction, but from that announcement from the Hefei Finance Bureau, it appears that the infrastructure construction will be done by the city government.
During the past Labor Day holiday from April 30 to May 4, construction of NeoPark continued with a busy scene at the site of the Phase I (North) project, according to local media.
More than 600 workers gave up their vacations to speed up the project, state-owned China National Radio reported on Monday.
The project is currently in the construction phase of the main structure, with the construction of all the main steel elements completed and 90 percent of the secondary steel elements, according to the report.
Construction of the project's envelope, secondary structure and flooring is proceeding in parallel to ensure that the plant will be handed over on June 30 this year, the report said.