PRESS RELEASE

February 27, 2002 - Sydney - Cheung Kong Infrastructure Holdings Ltd. (CKI) today announced that a CKI-led consortium has been chosen as the preferred tenderer for a new HK$3 billion (A$800-million) road tunnel project to carry through-traffic under the central business district of Sydney, Australia.

CKI has a 50 per cent interest in the consortium, Cross City Motorway (CCM) - which also includes D B Capital Partners (30 per cent) and construction contractor Baulderstone Hornibrook (20 per cent).

The project is a two-kilometre cross city tollway tunnel linking Sydney's eastern suburbs with the city's west. Expected to carry up to 95,000 vehicles a day by 2006, the tunnel is intended to alleviate the current heavy road traffic on the busy William Street connecting King's Cross to the Darling Harbour Bridge.

CCM was chosen as the preferred tenderer from three consortia considered by the New South Wales Government.

As preferred tenderer, CCM now will discuss a few outstanding issues with the State Government, upon satisfactory completion of which, the contract would be finalized by mid-year. Work is expected to commence before the end of 2002, and operation to begin by end 2006.

The Cross City Tunnel would be the first transport infrastructure project of CKI in Australia. It leverages off CKI's successful toll road and tunnel projects in Asia and its existing energy investments in Australia - Envestra, ETSA, and Powercor.

Commenting in Sydney about the project, Mr. H.L. Kam, Group Managing Director of CKI, said that the tunnel project is another milestone in CKI's Australian infrastructure development.

"This is our first transportation investment in Australia and our first infrastructure project in the State of New South Wales," Mr. Kam expressed.

"Sydney is a big city with heavy traffic volumes. Motorists have demonstrated that they appreciate the benefits of time-saving tollways and tunnels. This should pose as another high yield project to our existing HK$25 billion investment portfolio in Australia," he commented.

The decision in favour of CCM was announced in Sydney today by New South Wales Transport Minister Carl Scully, who emphasised the tunnel would be a vital part of Sydney's future transport planning.

"The Cross City Tunnel is a key part of the State Government's work to make it easier for people to travel around Sydney, bringing major benefits for motorists, public transport, pedestrians and cyclists," Minister Scully said.

CKI is the largest publicly-listed infrastructure company in Hong Kong with investments in Hong Kong Electric, infrastructure investments, infrastructure materials and infrastructure-related businesses. The company has operations in Hong Kong, mainland China, Australia, Canada and the Philippines.

Further information, please contact Miss Winnie Cheong of Cheung Kong Infrastructure Holdings Ltd at (852) 2122-2150.