(Yicai Global) July 4 -- Internet giant Tencent Holdings will build the smart city infrastructure and provide operational services for a CNY874 million (USD127.2 million) garden city project in Chengdu, the capital of China's southwestern province of Sichuan.

A consortium has inked a contract with Chengdu Tianfu Greenway Construction Investment, a subsidiary of the Chengdu municipal government and developer of the Chengdu Jincheng Greenway Project, for investment, construction and services, DHC Software said in a statement yesterday. Included in the consortium is Beijing DHC Digital Technology, a wholly owned unit of DHC Software, in which Tencent has an indirect quarter stake.

Shenzhen Tencent Industrial Investment Fund will set up and run a project company, with project construction funds raised by the consortium. Building work is expected to be completed within two years, the statement said.

The eco-friendly Jincheng Greenway Project is invested and developed by the Chengdu government along the city's ring road, featuring leisure tourism, sports, farm landscapes, and cultural exhibitions. A 133.1 square-kilometer ecological area will be formed after completion, according to publicly available information.

Tencent's project includes infrastructure construction, customized software system development and five-year after-sales service, covering several systems for a public cloud platform, network security and a Big Data platform.

After the project is completed and delivered, owner Tianfu Greenway Construction Investment will gradually repurchase it within four years in accordance with terms stipulated in the contract.

Tencent's cloud computing unit Tencent Cloud Computing Beijing and infrastructure contractor Sichuan Huati Lighting Technology will also participate in building the project, the statement said.

Tencent Industrial Investment Fund and the owner will form a joint venture to operate, manage and maintain the project after construction is finished, with the former holding a 30 percent stake in the JV, the statement said.