The Beijing MTR joint venture (JV) has signed the concession agreement with the city’s municipal government for the Beijing Metro Line 16 public-private partnership (PPP) project.
Under this concession agreement, which is subject to approval by relevant authorities, Beijing MTR will be responsible for the operations and maintenance of Line 16 for a period of 30 years.
Beijing MTR JV consists of MTR Corporation Limited (49%), Beijing Capital Group Limited (49%) and Beijing Infrastructure Investment Corporation Limited (2%).
MTR Corporation acting CEO Lincoln Leong said: “As a shareholder of Beijing MTR, we are most honoured to have the opportunity to extend the safe, reliable and convenient metro service that we currently provide on Line 4, the Daxing Line and Line 14 to even more commuters.
“Through this fourth metro project of Beijing MTR, we hope to continue to contribute to the sustainable development of Beijing.”
The $8-billion Line 16 project has been divided into two parts with Part A to be undertaken by Beijing Infrastructure Investment Corporation and it includes the line’s civil construction and accounts for 70% of the project’s capital cost.
Beijing MTR will be responsible for Part B which covers electrical and mechanical systems and rolling stock, and it takes up the remaining capital cost of the project. The JV is expected to contribute additional equity of up to $392 million for the project.
The 50km-long Line 16 will serve 29 stations from Beianhe to Wanping through several major districts, namely Haidian, Xicheng and Fengtai.
The first phase of the project is expected to open by the end of 2016, while the line will be fully operational after 2017.