Beijing subway system provides opportunity By Liu Jie (China Daily) Updated: 2004-06-30 08:27
Four urban rail projects in Beijing that went on public display yesterday
offer ample opportunities for domestic and foreign investors, according to
analysts.
Wang Qi, general manager of Beijing Infrastructure Investment Co Ltd, said
the total investment in the four railway lines will reach 49.92 billion yuan
(US$6.01 billion). The projects involve the construction of the No 4, No 5, and
No 9 lines, and the first-phase of No 10 (including the Olympic branch line). A
total railway length of 103.54 kilometres will be built.
The
four urban rail projects in Beijing will offer ample opportunities for
domestic and foreign investors, according to
analysts.[newsphoto]
"While 70 per cent of the funds needed, or 34.94 billion yuan (US$4.21
billion), will come from fiscal investment; the remaining 30 per cent, or 14.98
billion yuan (US$1.81 billion), is to depend on private investment," said Wang.
According to the investment documents issued by the Beijing Infrastructure Co
Ltd, designated by the municipal government to act as the government investment
party, the government will be responsible for the requisition and relocation of
residents, earth works (including building of subway stations, holes, vehicle
pieces and parking lots), railways 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 communication, air-conditioners, water supply and drainage,
fire controls, escalators, elevators, control equipment and power supply
facilities.
"Private investors should also conduct the maintenance and renewal of
cavities, stations and equipment, and operate advertising, communication and
commercial facilities along the subway lines," said Wang.
The government investment party will sign a contract with the private
investor that wins the bid, to set up a co-operative licensed operating company.
"The government investment party is to control the co-operative company but
does not have the right to make decisions on daily operations, and will not
share the income or be responsible for any deficits," said Wang.
"All revenue from tickets, advertising and commercial rentals will be enjoyed
by the private investor."
At the end of the licensed period, generally 30 years, the co-operative
company must transfer the project, free of expense, to the
government.
