[ET Net News Agency, 15 January 2020] China Railway Construction Corporation Limited
(01186) said a consortium of the company won the bid for the PPP project of Phase I
Engineering of Tianjin Metro Line No. 8. The bid-winning price of the project is the
availability service fee of RMB1.29582 billion/year, the initial agreed service fee for
vehicle-kilometre is RMB23.77/ vehicle-kilometre. The total value of the availability
service fee and service fee for vehicle-kilometre after discounting is approximately
RMB24.47885 billion. 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 registered capital of the project company amounts to RMB5 billion. The project
capital accounts for 40% of the total investment of the project. The contribution from
government and social capital are 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. (RC)