China Railway announces victory in metro PPP
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China Railway Group Limited has won the bid for the Hohhot Metro Line 1 Phase One PPP project. Hohhot Municipal Government has awarded the project through a public competitive tendering through the public private partnership model.
The capital of the project is approximately 50% of the total investment of the project and the shareholding of the government and the consortium in the project company is 49%:51%.
The total length of the line is 21.932km and the total project investment amount is approximately CNY14.68 billion (US$2.2 billion). The duration of the contract will cover 30 years, with 57 months of construction period and 25 years of operating period.
The government has authorized the Office of Construction and Management of Airport and Railway of Hohhot to sign the concession agreement with the project company on behalf of the government.
The investors will realize the investment and reasonable return through the mechanism of payment by users + viability gap funding by the government.
Hohhot, formerly known as Kweisui, is the capital of Inner Mongolia in North China, serving as the region's administrative, economic, and cultural centre. Its population was 2,866,615 inhabitants at the 2010.
Other rail PPP projects recently awarded in China include:
