MegaProject 1010: China’s first high-speed rail PPP reaches financial close
- China Railway Construction Corporation (CRCC)
- Fosun International Limited
- Hongrun Construction Group
- Wangfeng Auto Holding Group
- Ping An Insurance Company of China
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A Fosun-led consortium has signed China’s Hangzhou-Shaoxing-Taizhou railway PPP, the first Chinese high-speed railway (HSR) controlled by private capital.
The consortium comprises Fosun International (28.65%), Hongrun Construction Group (12.75%), Wangfeng Auto Holding Group (7.65%). Zhejiang United Mechanical & Electrical and Chinese insurance giant Ping An also signed up as partners with minority stakes.
State-owned China Railway Corporation (15%) and the Shaoxing, Taizhou and Zhejiang governments (34%) will hold the remaining shares.
Sunvision Capital, which is under Fosun Property, a member company of Fosun Group, will work with all parties concerned to jointly promote the smooth progress of the project.
Hangzhou-Shaoxing-Taizhou HSR Project is part of the coastal rapid passenger traffic passage in China, an important portion of the integrated transportation network in urban area and inter-city rapid transportation network in the Yangtze River Delta. It is also a dedicated passenger railway line integrating various functions of road network, inter-city connection, tourism and economic development.
The 270km-project will be developer under the build, own, operate and transfer (BOOT) model. The construction woks will commence this year and It is set to be completed by 2021. The project will have a 30 year concession period.
As a national railway PPP demonstration project and the No. 1 PPP project in Zhejiang, Hangzhou-Shaoxing-Taizhou HSR Project is expected to post a total investment of CNY44 billion (US$6.7 billlion).
In the country, PPP projects have predominantly been undertaken by state-owned enterprises due to their long payback period.