Contract for joint venture company for Hangzhou metro line 1 signed
MTR Corporation is pleased to announce the National Development and Reform Commission approved the Public-Private Partnership (PPP) project for investment, construction and operations of Hangzhou Metro Line 1.
Following the approval, MTR Corporation’s subsidiary, MTR Hangzhou Line 1 Investment Company Limited, has signed a contract with a subsidiary of Hangzhou Metro Group Company Limited to set up a Joint Venture Company to invest in and operate Hangzhou Metro Line 1 for a period of 25 years. Mr Jay Walder, Chief Executive Officer of MTR Corporation, said the signing of the Joint Venture contract today marked a major milestone for the Corporation’s growing business in the Mainland. “This is an exciting time for MTR as we expand our investment and operations into our third Mainland city, Hangzhou, which will add to and complement the metro lines which MTR already operates in Beijing and Shenzhen,” added Mr Walder.
Total capital cost of the Hangzhou Metro Line 1 is about RMB¥ 22 billion. Hangzhou Metro Group Company Limited undertakes to invest in the project’s civil construction work representing about 62% of the total project cost. Under the approved PPP arrangement, the Joint Venture Company is responsible for the electrical and mechanical system as well as rolling stock with a total investment of approximately RMB¥ 8.3 billion, which is about
38% of the total project cost. MTR Corporation has an effective interest of 49% of the Joint Venture Company with the balance owned by Hangzhou Metro Group Company Limited. “Hangzou is a key modern commercial hub of historical and cultural significance in the rapidly developing Yangtze Delta Region. We will work hand in hand with our partner, Hangzhou Metro, to make Hangzhou Metro Line 1 a model of service excellence among
city metros in the world,” said Dr Raymond Ch’ien, Chairman of the MTR Corporation.
The 48-kilometre Hangzhou Metro Line 1, the first metro line in Hangzhou, is scheduled to open later this year. It features 31 stations running from the south to the north of Hangzhou.