CONSTRUCTION of a fourth heavy metro line in Beijing is to be undertaken by a private-sector consortium including Hong Kong MTRCorp, which recently signed a concession in Shenzhen (RG 2.04 p65).
The Chairman of Beijing Capital Group Liu Xiaoguang revealed on March 4 that the company had reached an agreement in principle with MTRC to 'jointly undertake' construction and operation of Beijing's fourth line; total value of the project is put at 15·6bn yuan. Liu said the municipal government would take a majority stake, with the remaining equity shared between Beijing Capital and MTRC.
The deal includes rights to develop land and property along the route. Liu did not indicate whether this would be managed by MTRC, or by Beijing Capital Land which already has development rights on Line 5.
Beijing Rail Transport Construction & Management Company signed anti-corruption contracts on March 11 with 16 departments involved with construction of 86·2 km of metro and light lines in the capital ready for the 2008 Olympic Games.
- On March 2 General Manager Xie Zhengguang announced that Beijing Subway Corp would spend 3·7bn yuan on 44 projects to reduce risk on its metro network by 2007. The work includes upgrading the fire control, ventilation and power supply systems and rolling stock renewal.