Beijing Metro Line 16 PPP Project
2023.08.02
Project Name | Beijing Metro Line 16 PPP Project |
Location | Beijing |
Owner/Implementation Units | Owner Unit: Beijing Municipal Commission of Transport Government Funding Representative: Beijing Infrastructure Investment Co., Ltd. Implementation Unit: Beijing MTR Corporation Limited |
Keywords | rail transit; PPP; BOT |
Completion Time | December 2016 |
Description | Beijing Metro Line 16 connects Suzhou Jie on the north and Wanping Cheng on the south and passes through Suzhou Qiao, Sanlihe, Muxidi, Lize Business District, and other places. With a maximum operating speed of 80 km/h, it has 16 stations and 280 vehicles. The total investment of the Beijing Metro Line 16 PPP project is about 47.4 billion yuan. Funds are raised in accordance with the Beijing rail transit policy, of which 40% are resolved by the special fund for rail transit construction and the rest are resolved through bank loans. The construction of the project started in 2013 and the first section was completed and opened to traffic on December 31, 2016. The total investment of Beijing Metro Line 16 has been divided into two parts according to certain principles and proportions. Part A is civil construction, which is funded and owned by the government. It will be leased to Beijing MTR Corporation Limited after completion. Part B is the system and equipment, which is franchised by Beijing MTR Corporation Limited under the PPP model. The Beijing MTR Corporation Limited shall be responsible for the maintenance and renewal of all facilities of Line 16, including parts A and B, during the concession period. The investment of about 32.4 billion yuan in part A of Line 16 is undertaken by Line 16 Company (a wholly-owned subsidiary of the Beijing Infrastructure Investment Co., Ltd.). It includes about 13 billion yuan project capital, which is raised by the equity investor through insurance equity investment plans or other feasible ways, and 12 billion yuan equity investment for participating in the Line 16 Company, and the rest of the capital invested by the Beijing Infrastructure Investment Co., Ltd. Equity investors shall entrust all the equity held to the Beijing Infrastructure Investment Co., Ltd. They shall neither participate in the operation and management of Line 16 Company nor transfer their equity in Line 16 Company to a third party. The equity investment period shall not exceed 20 years. The Beijing Infrastructure Investment Co., Ltd. shall repurchase the equity of Line 16 Company held by the equity investor at the original value under the expiration of the period. During the equity investment period, equity investors obtain equity investment returns in the form of equity transfer consideration or other names. The Beijing MTR Corporation Limited, as the bid winner, shall be responsible for the investment and construction of Part B of Line 16 during the construction period, and the operation, management, and maintenance of all facilities (covering Part A and Part B) of Line 16 as well as the asset renovation and additional investment apart from the cave in the concession period of 30 years. Upon the expiration of the concession period, Beijing MTR Corporation Limited shall hand over the project facilities to Line 16 Company or the designated department of the municipal government for free. The Beijing MTR Corporation Limited shall achieve investment recovery and obtain a reasonable return on investment through three ways, including the passenger ticket revenue during the concession period, the income of non-ticket business within the concession agreement, and government subsidies. For the part A project invested and constructed by the Line 16 Company, the Beijing MTR Corporation Limited shall sign an asset leasing agreement with the Line 16 Company to obtain the right to use the assets after its completion and acceptance. For the Beijing Metro Line 16 PPP project, the private investor adopts the PPP model to participate in the investment, construction, and operation of the metro, and obtains the franchise right for the entire line. During the concession period, it achieves investment recovery and obtains a reasonable return on investment through ticket income, non-ticket income, and government subsidies for tickets. The equity investor raises funds through insurance equity investment plans or other feasible ways and participates in the equity investment of Line 16 Company. The composite PPP model is a new attempt that pioneered in the financing model and capital scale in China. |
Key Data | Total investment of the project: 27.3 billion yuan Concession period: 30 years Total length of the line: 50 kilometers Designed speed: 80 km/h There are 16 stations, including 10 transfer stations. It is equipped with eight-car subway trains with in total 280 cars in the early stage, the short term and the long term. |
Stakeholders | / |
Status Quo/Progress | On December 31, 2022, the south section of Beijing Metro Line 16 was officially opened and connected with the north and central sections. The south section of Line 16 connects Muxidi on the north and Yushuzhuang on the south. With a total length of 14.3 kilometers, it covers 10 stations. |
Innovation Point | The PPP investment mode is planned in advance. The targeted financing model of “equity financing+concession operation” is adopted to attract private investors of different characteristics. Meanwhile, the investment control method is adjusted to ensure that the investment is fully in place. |
Download attachment | https://www.cpppc.org:8082/inforpublic/homepage.html#/preview/001720200118100044030soy000049as3qw |
