I. Survey of Changfeng County

1. Regional Survey

Changfeng County lies in the middle of Anhui Province. With its south bordering on the capital Hefei City, north to Huainan City, its east to Bengbu City, Changfeng County is a traffic hinge to connect Hefei, Huainan and Bengbu. It now has jurisdiction of 8 organizational system towns, 7 townships and one developing zone at provincial level, with the total area of 1938 km², among which cultivated land amounts for about 60% of the territory area and the total population of 783,000, including 695,000 agricultural population. It was listed as national important county for aid-the-poor programme in 1994 and the provincial harnessing and developing important county for the dividing line between the Yangtze River and Huai River.

2. Natural Condition (Climate, Atmospheric Temperature, Precipitation, River Course and Natural Resources)

Changfeng County lies in the transition place between subtropics monsoon moist climate and temperate semi-moist climate. Within the county, four seasons are clearly divided; climate is mild; the sunshine is abundance; the rainfall is moderate and the period without frost is relatively long, which is helpful for the production of crops. The annual average temperature is 15℃ and the average non-frost period over the years is 224 days, with the longest 245 days and the shortest 195 days. The average rainfall for years is 957.4 mm, with the most annual rainfall of 1281.9 mm and the least 478.1 mm. There is the most rainfall in summer and the least in winter. The groundwater resource in this place is abundant. The average depth of runoff within the boundaries from north to south is 270-292mm, with the average point of about 280mm. The annual average runoff quantity (water-producing quantity) is 656,000,000m³. The average depth of rainfall over the years is 226.2mm and the runoff quantity that can be used is 530,000,000 m³. There are Zhuangmu Lake, Pei River, Chi River and South Fei River in the place. The lakes in this place are Wabu Lake that the average water-coming quantity is 399,000,000 m³ and Gaotang Lake that the average water-coming quantity is 198,000,000 m³. Besides these, there are Wadong trunk canal and Chuhe trunk canal. There are 188 medium-and-small sized reservoirs in the county, with the storage capacity of more than 100,000,000m³.

3. The Condition of Industrial and Economic Development

In recent years, Changfeng County promotes striding development of county economy with extra-regular dynamics. The country economy is in fast track of total quantity enlarging and the speed increasing. From 2005, the county has been in the first row of the ten best dynamic counties of the province for the successive two years and its comprehensive strength is listed in the upper-middle of the province. In 2006, the regional total output value breaks 5,000,000,000 Yuan; the industrial total value breaks 6,000,000,000 Yuan; the financial income breaks 350,000,000 Yuan and the per capita net income of farmers breaks 3,000 Yuan, which surpasses the provincial average level.

II. Analyses of the Advantages for the Construction Conditions of this Project

1. Regional Traffic Advantage

Changfeng County is an intercity county, which lies between the two big cities of Anhui Province. With its north to Huainan City, a city rich in energy sources and its south bordering on the capital Hefei Ccity, it has the advantage of nearing city and advantageous regional condition. Hefei is the first stop for the speeding transferring of property and fund home and abroad to the inland. It is the city that is nearest to sea in all the interior provincial capitals, which is the close neighbor of Yangtze Triangle Economic Circle. It is the hinderland of the coastaland and the forward position of the inland. If you draw a circle with Hefei as the center of the circle and the radius of 500 kilometers, it can scope about 7 provinces and 1 municipality in the east and middle China with the population more than 400,000,000. Changfeng County possesses the advantage of highway, railway and airfreight with the convenient traffic. No.206 national highway, No.315 provincial freeway, Huainan Railway and Hefei North Three Ring Belt Highway that is going to be open to traffic and the highway from Hefei to Huaibei and Fuyang run through the whole county, connecting with freeways of Hefei-Nanjing, Hefei-Xuzhou and Hefei-Wuhu, and connecting with railways of Beijing-Shanghai, Beijing-Jiulong and Nanjing-Xi’an. The high speed railway from Hefei to Huainan and Bengbu that is in the plan also runs through the county. It is only 18 kilometers from Changfeng to Luogang Airport in Hefei which is the first-rank big-sized airport in China with more than 40 lines directing reaching important cities in home and abroad. The 4E-rank Hefei Xinqiao International Airport that is under planning is near Wushan Town of this county. When the railways of Shanghai-Wuhan-Chengdu, Hefei-Nanjing and Hefei-Wuhan are completed, it takes only 45 minutes from Hefei to Nanjing and 2 hours to Shanghai and Wuhan. For the water transport, it can go from Chaohu Lake directly to the Yangtze River. The Yangtze River and Huai River canal construction project that is just starting will make Hefei be the water transport center for connecting the Yangtze River and Huai River. It takes within 6 hours to the ports of Wuhu, Nanjing and Shanghai in the water transport to do ocean-going transport.

2. Investment Cost and the Preferential Policies

(1). The Price of Water and Electricity and the Cost of Handling Waste Materials

The cost of production and operation in Changfeng County is relatively low, which can provide big profit space for the investors. The cost of water, electricity and labor is lower than the coastal cities by 30-50% and the price of the industrial land is only 40% of Hefei City, which has the title of “the land of city but the price of countryside”. Changfeng is near to Huainan, a city of energy sources and the sufficient supply of coal and electricity. Even in the peak season of using electricity, it won’t be cut off. After completing this project, it will consume a lot of water. Now, we have three water-using plans. The first is using running water. The price of water for industrial production in Changfeng County is 2.1 Yuan per ton. For those projects which reach a certain investing degree with high additional value and long production chain, the price of water can be a litter less relatively. The second plan is to exploit water by yourself. The water resource in Changfeng County is abundant. The underground water resource is not deep with high quality and easy to be exploited. The underground water can be utilized in industrial and agricultural production and daily life. If this project exploits underground water by yourself, Changfeng County will collect a certain water resource management fee (the surface water resource management fee in our county is 0.06 Yuan/ m³, and the underground water resource management fee is as follows: for the depth of the well above 50 meters, it is 0.15 Yuan/m³; for the depth of well below 50 meters, it is 0.3 Yuan/m³). The third plan is to get water from the reservoir. There are 188 medium-and-small-sized reservoirs in the county with the storage capacity of more than 100,000,000m3. If this project gets water from the reservoir, the fee of eater resource is 0.06 Yuan/m³ and the water fee for industrial project is 0.15 Yuan/m³.

The cultivation base of this project belongs to agricultural usage electricity. The price of electricity varies in accordance with the rank of voltage. The slaughtering project belongs to industrial usage electricity and the electricity price is fixed on according to the capacitance. The standard of electricity price of Changfeng County is in the following table (This table is only served as reference. For the specific electricity price, it will take the electricity price policy in Anhui Province as standard according to the difference of the capacitance).

For the cost of this project in handling waste materials, the enterprise is allowed to build its station. If it reaches the standard of getting out, the cost can be exempted.

(2) The Raw Materials Supply and Labor Condition of this Project

Changfeng County is the big county of agriculture, the national production base county for commodity grain, one of the national 100 better counties of oil production, the national breeding base of cash pork pigs, the production trial place of national non-pollution strawberry and Xueshan chickens, the biggest county of strawberry production, and cow-breeding in Anhui Province and key county of cotton production and corn-planting of Anhui province. The corn-planting area of Changfeng County in 2007 is more than 80,000 mu and the production of corn is about 40,000 tons. There are about 30 medium-and-small-sized oil factories in Changfeng County, such as, Fengle Plant Oil Factory of Changfeng County and Huayuan Oil Fat of Changfeng County. The annual bean production of the whole county is about 50,000 tons. Besides these, near Changfeng County, there are agricultural counties of Feidong, Feixi, Dingyuan and Shouxian etc. where the corn-planting area is more than 30,000 mu and the annual corn production is about 150,000 tons. This can guarantee that this project has sufficient raw materials supplying market. In recent years, Changfeng County develops the breeding industry, taking Lihua Livestock Co., Ltd. as the focus and lists the agricultural industrialization enterprises as the importance. At present, there are two municipal agricultural industrialization enterprises in Changfeng poultry enterprises, that is, Changfeng Anqin Poultry Breeding Co., Ltd. and Changfeng Fengbao Poultry Breeding Company. Anqin Poultry Company is the biggest chicks breeding enterprise in Anhui Province. It has chicken breeders 180,000. Changfeng County has one provincial enterprise---Hefei Lihua Poultry Breeding Co., Ltd. It was approved to be the demonstration base of national agricultural standardization production in 2005 and it was confirmed as the provincial agricultural industrialization important enterprise in 2006. Its leading product---Xueshan Chicken was recognized as mutual-recognizing product by Shanghai in 2006 and passed the non-pollution agricultural product authentication of Ministry of Agriculture in 2007. It is predicted that there are about 23,500,000 to 24,600,000 domestic fouls of the county in 2007. There are more than 500 livestock on hand all over the year and 371 households that can give more than 5000 poultry each year. Now, there are 4,237,100 livestock on hand. In October 2007, there are 21 households that have 10,000 to 50,000 poultry on hand and five households that have 50,000 to 100,000 poultry on hand and four households that have more than 100,000. The enthusiasm of breeding in the county is on the upsurge. There are a lot of skilled breeding workers.

(3) Policies Advantages

Changfeng County is the national important county of aid-the-poor programme development. The productive enterprises that invest in Changfeng County can enjoy the special preferential policies, such as “three exemptions” of enterprise income tax of national poor counties within the prescriptive period. Changfeng County is in the scope of “two compares”. It can compare the relevant preferential policies of implementing the old industrial base in Northeast China etc. and western development. For the enterprises that invest in Changfeng, the tax in the future years will be reduced greatly. Changfeng County encourages industrial development and for the projects of industrial investment, it won’t collect 45 administrative fees of industrial and commercial registration etc. and for the aspects of prophase fee of industrial project, the production enlargement, the technology innovation and award of backbone industry etc., it will give policy support. Besides this, it will adopt the method of “one ting, one discussion” for the projects of the kind of national encouragement and relatively large investing intensity of all those new productive enterprises invested in Changfeng County. When this project is settled in Changfeng County, we will assist it to apply for provincial agricultural industrialization leading enterprise and strive for provincial annual supporting fund for agricultural industrialization leading enterprise according to the relevant documents of the province and the city.

(4) Service Advantages

Changfeng County issues “One plate, two cards” to external enterprises and merchants to protect the legal rights and interests of the investors and to carry out obvious support for the important enterprises. For the needs of the investors, it will adopt the principle of “If there is anything, it will be certainly done; if the thing is difficult, the county will help it to be done; if the thing is urgent, it will be done in time and if the thing is special, it will be done in a special way”. Changfeng County also establishes the service network of three levels of county, township and village that is convenient and helpful to people and merchants. It carries out the whole course housekeeper one-station service of “helping and acting on its behalf” and implements the policies of finishing the procedures within the time, finishing in twice, approving and examining together, tolerating absence, handling the important projects in the meeting and handle specially for the special things etc. It has become the brand of “Changfeng Service” for “the least approving and examining procedures, the highest of the work efficiency, the lowest of developing cost, the fastest of project construction and the best of social reputation”. Changfeng County carries out the close management for the industrial district and implements “quiet working day” and “without meeting” policies for enterprises. In 2005, Hefei City won “Chang’an Cup” prize—the highest prize for national social order and Changfeng County was entitled “Peace County of the Province” this year.

III. Survey of the Suggestive Places for this Project

1.      Xiatang Town of Changfeng County

Xiatang Town lies in the middle of Changfeng County. It is established in the Song Dynasty and has more than one thousand years history. The folkway here is honest and simple. It is 35 km from Hefei City to the south of this town, only 18 km from the exit of Hefei North Three Ring Highway and 6 km from the exit of Hefei—Huainan—Fuyang Highway. Hefei—Jiulonggang road (from Hefei City to Jiulonggang of Huannan City) goes through this place from south to north, which is the standardized provincial second-rank road. It is 38 km from Hefei Xinqiao International Airport to south-west of this town. The traffic is very convenient.

Xiatang Town has abundant water resource. There are more than ten big-and-small-sized reservoirs in this town, among which the relatively large Shuanghe reservoir has the capacity of 19,000,000 m³, lying north-east of Xiatang Town, east of Hefei—Shuijiahu road and Longmen Temple reservoir, with 11,300,000 m³, south-west of Xiatang Town and south of Xiayang Road, Taolaoba reservoir, 6,540,000 m³, south of Xiatang and Xiayang Road, Hongqi reservoir, 6,140,000 m³, middle east of Xiatang, east of Hefei---Jiulonggang Road and Dongfanfhong reservoir, 3,800,000 m³, north-east of Xiatang Town, east of Hefei---Jiulonggang Road. The total capacity of the reservoirs in the town is about 60,000,000 m³. Furthermore, in the upriver the five reservoirs of Dabie Mountain and in the downriver branch of Pishihang canal trunk and Wadong canal trunk go through the town, so it can supply water through mediation at any time, which makes Xiatang Town ensure stable agricultural yields despite drought or excessive rain for many years and the water environment of sufficient industrial usage water. At present, the water-supplying ability of Xiatang Running Water Factory within the town boundaries can reach 10,000 tons/day. The water source is clean; the water quality is fine. The water price of industrial production is 1.86 Yuan/ton. The underground water of Xiatang Town is abundant and the water level is high, which has high using proportion.

Xiatang Town lies in the middle of Huainan City—one of the Huadong power supply center and Hefei City. The 110 kv transformer substation in the town can receive the electric power supply from each big power factory in the two big cities of Huainan and Hefei. The water resource is abundant. For many years, this town does not have the situation of closing brake to restrict electricity supply. The electricity price is relatively low, which has strong competition. (Attached with photos).

2.      Taolou Township in Changfeng County

Taolou Township lies in the middle south of Changfeng County. It is about 1.5 km to the east of 206 national road and about 30 km from provincial capital Hefei. The national land area within the boundaries is 105 km². The main water sources are state-owned medium-sized Longmen Temple and Taolaoba reservoirs. Meanwhile, there is one small one-type reservoir and 12 small two-type reservoirs within the boundaries so that the water sources can be guaranteed.

In recent years, with the government paying attention to “Agriculture，Rural Areas and Peasantry” and the provincial committee and provincial government continuously strengthening the comprehensive harnessing of the dividing district between the Yangtze River and Huai River, Taolou Township grips the opportunity, steps up facing the difficulty and increases agricultural devotion. Therefore, the developing momentum of stockbreeding is driving. For the two years, three cow breeding sections and two hoggeries have been built. There are also about 120 chicken breeding rocs of all kinds, which can give out 200,000 commodity chickens every year.

This project can select the upriver place of Taolou Township. The water area of Taolaoba reservoir is more than 4,000 mu with the storage capacity of 7,500,000 m³. The surrounding environment of the reservoir is beautiful. It has the useable land of about 1,200 mu, which is suitable for the construction of big-sized slaughterhouse. (Attached with photos)

Person to Contact: Fan Fudi  Director General of Investment Promotion Bureau of the People’s Government of Changfeng County

Telephone to Contact: 0551—6681340

Appendixes:

1. Photos of Xiatang Town

2. Photos of Taolou Township

3. Administrative Planning Draft of Changfeng County

Investment Promotion Bureau of the People’s Government of Changfeng County

November 28, 2007