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China Railway Construction Corporation (CRCC) has won the Wuzhong - Zhongwei section of the Shizuishan - Guyuan intercity rail line and the Line 5 of Kunming Rail Transit project, both located in China. The projects will be developed under the public private partnership (PPP) model.

The Wuzhong - Zhongwei rail PPP project involves an estimated investment of CNY13,615 million (US$2.07 billion), of which the construction cost is CNY9,592.49 million. Ningxia Railway Investment will hold 70% equity of the project, while the remaining 30% will be held by CRCC. The expected construction period of the project is 28 months.

The Line 5 of Kunming Rail Transit PPP project involves an estimated investment of CNY21,351 million (US$3.25 billion). In particular, the civil construction, purchase of electromechanical equipment and vehicles as well as land requisition and demolishing will be approximately CNY10,845 million, CNY169 million and CNY3,337 million, respectively. The PPP cooperation model will be divided into two parts:

• 15 - year concession for the civil construction (Part A) and
• 30 - year concession for the electromechanical equipment and vehicles (Part B)

The project capital represents 40% of the total investment of the project, of which the project capital for Part A and Part B are tentatively set to be CNY4,338 million and CNY2,867 million respectively.

In early 2016, we announced that CRCC won the Phase 1 for the development of the Xuzhou urban rail transit line 2 project.  Previously, we reported that the company announced a plan to raise US$500 million by issuing a bond convertible shares to fund business operations.