Beijing Xingyan Expressway PPP Project
2023.08.02
Project Name | Beijing Xingyan Expressway PPP Project |
Location | Beijing |
Owner/Implementation Units | Public Investor: Beijing Capital Highway Development Group Co., Ltd. Implementation Unit: China Railway Construction Corporation Limited, China Railway 12th Bureau Group Co., Ltd., and China Railway 14th Bureau Group Corporation Limited. |
Keywords | Beijing-Tianjin-Hebei integration; Expressway construction; PPP |
Completion Time | Opened to traffic on January 1, 2019 |
Description | To alleviate the traffic pressure in North China and the northwest of Beijing, support the passenger and cargo diversion policy in the northwest of Beijing, and further promote the integrated transportation networks of Beijing-Tianjin-Hebei region, the Beijing Xingyan Expressway project was implemented in the PPP mode with the consent of the Beijing Municipal Government. Located to the west of the Beijing–Lhasa Expressway, the 42.4 kilometers Xingyan Expressway runs from the south to the north, extending from the Northwest Sixth Ring Road in the south to the north of Yingchengzi Interchange Toll Station of the Beijing-Lhasa Expressway. The estimated total investment of the project is about 14.35 billion yuan and the operation period is 25 years. The government provides about 3.6 billion yuan, accounting for 25% of the total project investment. The private investor provides approximately 3.75 billion yuan according to its equity ratio and the project company is responsible for raising the remaining funds. Under the PPP mode of franchising, the Beijing Municipal Government authorizes the Beijing Municipal Commission of Transport as the owner unit which selects the private investor through public bidding. The Beijing Capital Highway Development Group Co., Ltd., as the public investor, contributes to about 25% of the total project investment. The private investor contributes to about 26% of the total project investment. The two sides establish the project company under the equity ratio of 49:51. The project company is jointly established by the Beijing Capital Highway Development Group Co., Ltd. and the private investor. Among them, the Beijing Capital Highway Development Group Co., Ltd. invested about 3.27 billion yuan (accounting for 49% of the shares) with government capital and the private investor provided about 3.4 billion yuan (accounting for 51% of the shares). The Beijing Capital Highway Development Group Co., Ltd. doesn’t get dividends from the project company. The project company is responsible for project investment, construction, operation, and maintenance of the Xingyan Expressway, which should be handed over to the government upon expiration of the operation period. The franchise rights during the franchise period of the project include the right to charge expressways and billboards along the line, as well as the right to operate refueling stations. The Xingyan Expressway PPP project is the first successful expressway PPP project in China, providing a good example for the promotion of the expressway PPP project in the country. Compared with the traditional construction mode, the investment (drop by 8%) and operating costs (drop by 78%) have been effectively reduced under the PPP mode. The agreed toll rate has been reduced to 0.88 yuan per kilometer for a standard car. The annual governmental subsidy has been dropped from the expected 1 billion yuan to 0.3 billion yuan. Over 17.5 billion yuan will be saved during the operation period, greatly reducing the financial pressure on the government. |
Key Data | The estimated total investment of the project is about 14.35 billion yuan. The Beijing Capital Highway Development Group Co., Ltd., as the public investor, contributes to about 25% of the total project investment. The private investor contributes to about 26% of the total project investment. The two sides establish the project company under the equity ratio of 49:51. The project company is jointly established by the Beijing Capital Highway Development Group Co., Ltd. and the private investor. Among them, the Beijing Capital Highway Development Group Co., Ltd. invested about 3.27 billion yuan (accounting for 49% of the shares) with government capital and the private investor provided about 3.4 billion yuan (accounting for 51% of the shares). Compared with the traditional construction mode, the investment (drop by 8%) and operating costs (drop by 78%) have been effectively reduced under the PPP mode. The agreed toll rate has been reduced to 0.88 yuan per kilometer for a standard car. The annual governmental subsidy has been dropped from the expected 1 billion yuan to 0.3 billion yuan. |
Stakeholders | Beijing Capital Highway Development Group Co., Ltd., China Railway Construction Corporation Limited, China Railway 12th Bureau Group Co., Ltd., and China Railway 14th Bureau Group Corporation Limited. |
Status Quo/Progress | In February 2019, the Beijing Municipal Commission of Development and Reform launched a special construction task for the green channel landscape construction project of Xingyan Expressway (Changping Section). With the greening of more than 600 hectares, the landscape corridor of Xingyan Expressway was built. The project has won the first prize of the 2021 Excellent Municipal Public Engineering Comprehensive Award (Rail Transit). |
Innovation Point | There are five innovation points of the project: The first is that it is the first project to set an “agreed toll rate” for expressways in China. The second is that it rationally designs the minimum traffic flow and excess profit-sharing mechanism. The third is that it builds a reasonable income distribution and risk-sharing mechanism. The fourth is that it adopts the double-envelope comprehensive evaluation for bid evaluation. The fifth is that it innovates the preparation of bidding documents and contracts for expressway PPP projects. |
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