UP TO 30% of the funding needed to expand Beijing’s metro network for the 2008 Olympic Games will be raised from the private sector.
The city government’s Deputy Director-General of Development & Planning Liu Zhi revealed on May 25 that the city was looking to raise 14·5bn yuan in foreign capital by awarding concessions to operate the planned Lines 4, 5, 9 and 10 (RG 3.03 p119). Open tenders will be invited shortly on the basis of a 7:3 public-private partnership.
Totalling 103·5 km, the four routes are expected to cost 50bn yuan. The city’s investment will be managed by a new company, Beijing Infrastructure Investment Co Ltd, and will fund the civil and E&M works. The private-sector element is expected to fund the rolling stock and station services such as fare collection and passenger information systems.
Liu said that under its current master plan, the city expects to invest 230bn yuan in urban infrastructure works over the next four years. Much of this will be through BOT contracts with the aim of opening up the construction market. Some existing planning approval process will be replaced by new regulations to permit market pricing and open tendering.