A consortium of China Railway Construction Corporation Ltd has announced that it has recently won a bid for the development of the engineering project of Tianjin Metro Line No. 8.

The project is worth approximately CNY24.48 billion (USD 354.72 million).

The value of the project consists of the availability service fee of CNY1.29 billion (USD 187 million) a year and an initial agreed service fee for the vehicle-kilometer of CNY23.77 (USD 3.44).

The project adopts an operation mode of “build-operate-transfer” with a return method of feasibility gap subsidies. The cooperation period of the project is 26 years, of which the construction period is 5 years and the operation period is 21 years.

The contribution from government and social capital is at an equity interest ratio of 49%: 51%. Other funds apart from the project capital are raised by the project company, being the financing subject, through bank loans as pledged by the expected return right of the project.