CHINA: Beijing municipality and Beijing MTR Corp Ltd initialled a PPP concession covering railway systems and the future operation of metro Line 14 on November 6. The agreement is still subject to approval by government authorities.
Beijing MTR Corp Ltd is a joint venture of MTR Corp (49%), Beijing Capital Group (49%) and Beijing Infrastructure Investment Corp (2%).
The Line 14 project is divided into two parts. Part A is being undertaken by Beijing Infrastructure Investment Corp and covers civil works accounting for about 70% of the project's 50bn yuan capital cost. Construction of the 47·3 km line started in 2010, with the first 12·7 km expected to open in 2013 and the rest of the line in 2015.
Under the PPP deal Beijing MTR would be responsible for Part B, covering electrical and mechanical systems, rolling stock and operation and maintenance for 30 years.
Beijing MTR would invest approximately 15bn yuan, 30% of the total project cost. MTR Corp would contribute additional equity of approximately 2·2bn yuan to Beijing MTR.
Line 14 will run from Zhangguozhuang in the southern Fengtai District to Shangezhuang in the eastern Chaoyang District, via Chaoyang Park and the Wangjing central business district. The 37 stations will include 10 interchanges.
'Line 14 will be the backbone of public transport between the southern and eastern parts of Beijing, and it will offer great convenience to the local community when it opens', said Richard Wong, General Manager of Beijing MTR, which currently operates Line 4 and the Daxing Line.