Phase 2 PPP project of Qingdao Subway with contract value of 14,000 million yuan is won by CCCC

Source:East China Regional HeadquartersTime:2016-11-01
On October 28, CCCC won the bid for Phase 2 PPP project of Hongdao-Jiaonan Intercity Rail Transit in Qingdao. Located at the Qingdao West Coast New Area, with a full length of some 40 km, an operation period of 25 years, a construction period of four years and a total investment of some 14,000 million yuan, the project is connected to the south and north ends of Phase 1.

CCCC has worked with Qingdao Metro and financial institutions to explore the innovative "Phase 2 model" for rail transit PPP Project cooperation. The model features the integration of limited partnership fund establishment with direct investment, and the government will carry out procurement from constructing investors and non-constructing investors, separately. Through business and financial model innovation, the role relationship among subway investors, financial institutions and constructors under PPP model will further change from counterparties to partners, to different parties' resource advantage into effectively, and accomplish the sharing of risks and benefits.

CCCC has achieved a cumulative construction output value of 2,750 million yuan after winning the bid for Phase 1 in October 2014, and is expected to break through bridges and tunnels in mid-November and December 2016 respectively, laying a solid foundation for Phase 2 cooperation.