MTR wins Line 13 PPP project

Writer: Han Ximin  |  Editor: Stephanie Yang  |  From: Shenzhen Daily  |  Updated: 2020-08-04

Hong Kong MTR Corp. announced yesterday that its wholly owned subsidiary, MTR Consulting (Shenzhen) Co. Ltd. (MTR Consulting), taking the lead in a partnership with China Railway Electrification Bureau (Group) Co. Ltd. (EEB), was awarded the tender for the Shenzhen Metro Line 13 Private-Public Partnership (PPP) project.

An agreement will be signed with the Shenzhen Municipal Government for the investment and construction of the project, and operation of Line 13 for a term of 30 years after completion.

The PPP project will be undertaken by a joint venture company in which MTR Consulting and EEB will have effective interest of 83 percent and 15 percent respectively, with the balance (2 percent) owned by a subsidiary of the Shenzhen Municipal Government.

The PPP project covers track laying, rolling stock and electrical and mechanical systems including the signaling system and the automated fare collection system, with a total capital cost of approximately 4.91 billion yuan (US$702 million) to be financed by both bonds and equity. The civil construction of the project is being undertaken by Shenzhen Metro Group Co. Ltd.

“We are very delighted to be awarded the Line 13 PPP project and participate in the railway network development of this city again,” said Jacob Kam, CEO of Hong Kong MTR Corp. “Building on our proven expertise in operating international railway services and experience in serving commuters in Shenzhen since 2010, we look forward to working closely with Shenzhen Metro Group and delivering safe, reliable and convenient Metro service to serve more commuters in this city. We will continue to contribute to improving the railway network of Shenzhen and further stimulating economic vitality in the Greater Bay Area.”

The 22.4-kilometer Line 13 is expected to commence service in 2023.