Fosun to sign China’s first private high speed railway contract
China’s first private high speed railway project contract is to be signed to Fosun Group, The Paper reports.
Private Chinese companies, led by investment company Fosun Group, will own a 51 percent stake in the Hangzhou-Shaoxing-Ningbo High Speed Railway, which is to be built in Zhejiang Province. Four State-Owned Enterprises (SOEs), including China Railway Corporation, will hold the remaining shares.
With a total investment of USD 6.89 billion, the project is expected to begin at the end of 2017. Upon completion, trains will travel at a designated speed of 350 kilometres per hour along the 269-kilometre railway.
The private companies and SOEs involved will be fully responsible for investment, financing, construction, operation and maintenance of the railway project. As well as a planned construction period of four years, all shareholders will be granted an operating concession period of 30 years, before the line is handed over to the Zhejiang Provincial Government.
“The first private high speed railway project helps encourage Chinese private companies to participate in the country’s infrastructure construction and promote the marketisation of Chinese railways,” said Li Hongchang, deputy director of the Chinese Transportation Economic Research Centre.
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