The Beijing MTR joint venture (JV) (Beijing MTR) in China has signed the concession agreement with the municipal government for the Beijing Metro Line 16 public-private partnership (PPP) project.
Comprising MTR (49%), Beijing Capital Group (49%) and Beijing Infrastructure Investment (2%), the JV will participate in the investment, operations and maintenance of the new line.
As part of the concession agreement, Beijing MTR will undertake the operations and maintenance of Line 16 for a term of 30 years.
MTR CEO Lincoln Leong said: "Currently, there are 18 metro lines operating in the capital city with a total route length of 527km.
"As a shareholder of Beijing MTR, we are most honoured to have the opportunity to extend the safe, reliable and convenient metro service that we currently provide on Line 4, Daxing Line and Line 14, to even more commuters through this fourth metro project of Beijing MTR."
The CNY47.4bn ($7.4bn) Line 16 project has been divided into two parts with Part A to be undertaken by Beijing Infrastructure Investment. It includes the line’s civil construction and accounts for 70% of the project’s capital cost.
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Beijing MTR will be responsible for Part B, which covers electrical and mechanical systems and rolling stock and it takes up the remaining capital cost of the project.
Beijing MTR general manager Richard Wong said: "Beijing Metro Line 16 will run through three major districts and connect to the city’s metro network through 12 interchange stations, making passenger journeys faster and easier while enhancing the overall convenience of Beijing’s metro system, which is used by ten million passengers a day."
Planned to be opened in two phases, the 50km-long Line 16 will serve 29 stations from Beianhe to Wanping through major districts Haidian, Xicheng and Fengtai.
The first phase of the project is expected to open by the end of next year, while the line will be fully operational after 2017.
Image: Executives of the companies at the signing of the Concession Agreement for Beijing Metro Line 16. Photo: courtesy of MTR Corporation.