Four urban rail projects in Beijing that went on public display
Tuesday offer enticing opportunities for domestic and foreign
investors.
Wang Qi, general manager of Beijing Infrastructure Investment
Co. Ltd., said that total investment in the four railway lines is
set at 49.9 billion yuan (US$6.0 billion). The projects involve the
construction of the Numbers 4, 5 and 9 lines and the first phase of
Number 10, which includes the Olympic branch line. The total length
of lines to be built is 103.5 kilometers.
"While 70 percent of the funds needed, or 34.9 billion yuan
(US$4.2 billion), will come from the government; the remaining 30
percent, or 15.0 billion yuan (US$1.8 billion), depends on the
private sector," said Wang.
Beijing Infrastructure, designated by the municipal government
to act as the government investment agent, reports that the
government will be responsible for the requisition of land and
relocation of residents, earth removal work (including building of
subway stations, access areas and parking areas), rail lines and
civil defense.
The private investors will be in charge of the purchase and
installation of electromechanical equipment such as vehicles,
automatic ticket-checking systems, signals and communications,
climate control, water supply and drainage, fire control,
escalators, elevators, control equipment and power supply.
"Private investors should also handle maintenance and repair of
tunnels, stations and equipment, and operate advertising,
communication and commercial facilities along the subway lines,"
said Wang.
The government investment party will enter into contracts with
private investors to establish cooperative licensed operating
companies.
"The government investment party will control the cooperative
company but does not have the right to make decisions on daily
operations. It will not share the income or be responsible for any
deficits," said Wang. "The private investor receives all revenue
from tickets, advertising and commercial rentals."
At the end of the licensed period, generally 30 years, the
cooperative company must transfer the project, free of charge, to
the government.
(China Daily June 30, 2004)