09:37     BEIJING AIRPORT<00694> - Announcement (2)                           

    2. renovation of the airside freight access link;                         
                                                                              
    3. construction of the northern area freight area and corresponding       
    auxiliary facilities;                                                     
                                                                              
    4. addition of 11 aircraft parking stands at the Air China freight        
    area;                                                                     
                                                                              
    5. renovation of a de-icing apron and renovation of certain taxiways;     
                                                                              
    6. demolition of the remaining properties at the two sides of the         
    existing freight area and renovation of the freight apron and roadside    
    transportation;                                                           
                                                                              
    7. expansion of the boundary on the west side of the west runway          
    airfield area and renovation of the water drainage facilities;            
                                                                              
    (ii) East Runway Airfield Area                                            
                                                                              
    8. renovation of the No.5 northern apron to facilitate the addition of    
    6 new aircraft parking stands;                                            
                                                                              
    9. construction of a new apron to the south of Air China's apron to       
    facilitate the addition of 5 new aircraft parking stands;                 
                                                                              
    10. removal of the No. 6 navigation lighting station;                     
                                                                              
    11. construction of a new high speed exit and a new U taxiway; and        
                                                                              
    12. renovation of certain taxiways.                                       
                                                                              
    B. THE PROJECT AGREEMENT                                                  
                                                                              
    Date : 18 January 2005                                                    
                                                                              
    Parties : the Company and Construction Corporation                        
                                                                              
    (i) Duration of the Project Agreement                                     
                                                                              
    From 18 January 2005 to 31 December 2007                                  
                                                                              
    (ii) Provision of services                                                
                                                                              
    Construction Corporation has agreed to provide certain project            
    management services in relation to the Project to the Company upon the    
    terms and conditions of the Project Agreement.                            
                                                                              
    (iii) Scope of the services of Construction Corporation                   
                                                                              
    The project management services proposed to be provided by                
    Construction Corporation include, inter alia, managing the Project,       
    devising a management plan for the Project, ensuring the prompt, safe     
    and proper completion of each particular work of the Project,             
    monitoring the costs and quality of works performed by the                
    contractors, monitoring the progress of the Project, purchasing           
    equipment and materials for the Project, preparing the contractors        
    tender documents in accordance with the relevant PRC laws and             
    regulations, applying for and obtaining all relevant approvals from       
    the relevant government bureaux and departments before commencement of    
    each particular work of the Project, organizing handover and              
    examination on completion of each particular work, and supervising the    
    implementation of security measures of the Company to ensure that the     
    construction works will not cause any suspension of flights.              
                                                                              
    Construction Corporation has agreed to enter into non-corruption          
    agreement with all relevant contractors and advise the Company in         
    relation to its entering into of warranty agreements with all relevant    
    contractors.                                                              
                                                                              
    (iv) Scope of duties of the Company                                       
                                                                              
    The Company has agreed to enter into agreements directly with the         
    relevant contractors that will actually carry out the Project. The        
    Company will choose the bidders for each particular work of the           
    Project. The Company will also be responsible for devising the annual     
    funding plan. In addition, the Company will be responsible for the        
    budget proposal of the Project.                                           
                                                                              
    C. SERVICE FEES                                                           
                                                                              
    Pursuant to the Project Agreement, Service Fees are payable by the        
    Company to Construction Corporation. Such fees comprise of the            
    following:                                                                
                                                                              
    (a) the Basic Fee. The Basic Fee shall be equivalent to 80% of the        
    approved project management costs for each particular work under the      
    Project. Such percentage has been determined with reference to the        
    proportion of the project management services proposed to be              
    undertaken by Construction Corporation in the Project, as compared to