China Railway Construction wins metro PPP project

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China Railway Construction wins metro PPP project

The consortium comprising China Railway Construction, Beijing Infrastructure Investment Co., Ltd. and Beijing MTR Construction Administration Corporation has won the bidding of Urumqi Metro Line No. 2 (Phase I) PPP Project.

The total length of the line under the project will be 19.35km with an estimated amount of CNY16.2 billion (US$2.4 billion) for the initial design.

The project will adopt Public-Private-Partnership (PPP) model for construction

A concession company will be incorporated in Urumqi jointly by the investor and Urumqi Urban Metro Group Co., Ltd. with 49% shareholding held by Urban Metro Group and 51% shareholding held by the investor. The capital of the project amounts to approximately CNY6.48 billion (US$975 million), representing 40% of the total investment of the project, with a capital contribution of CNY3.3 billion (US$496 million) by the investor.

The shareholding structure of the consortium will include Beijing Investment Company (with 51% shareholding), Construction Administration Company (with 14% shareholding) and China Railway Construction (with 35% shareholding).

As the leader of the consortium, Beijing Investment Company will be responsible for the coordination and management of the daily operation of the project throughout the investment period and negotiate with officials of Urumqi Municipal Government for business opportunities and enter into relevant agreements on behalf of the consortium. As the general engineering contractor of the project, China Railway Construction will undertake two-thirds of the engineering of the project (with an estimated investment of approximately RMB5.77 billion).

The concession period of the project will be 35 years with the construction period of 5 years and operation period of 30 years. The project will be delivered to Urumqi Municipal Government or its designated authorities upon the expiry of the operation period. 

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