The most popular subway in Shenyang will eventuall

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Shenyang Metro will eventually break the ground with an investment of nearly 10 billion yuan in 10 years

Shenyang Metro will eventually break the ground with an investment of nearly 10 billion yuan in 10 years

China Construction Machinery Information

Guide: the construction of Shenyang Metro Line 1 is expected to start in September. A high-level official from Tiexi District of Shenyang told Li that at present, the negotiation with the South Korean side is smooth, and the South Korean well-known enterprise Daewoo construction expressed its interest in joint venture cooperation. He also affirmed that the investment of 9.48 billion yuan would not be a problem. Fundraising

"Shenyang Metro Line 1 is expected to start construction in September." A senior official in Tiexi District of Shenyang told Li, "at present, the negotiation with the South Korean side is smooth, and the South Korean well-known enterprise Daewoo construction expressed its intention to cooperate in a joint venture." He also affirmed that "the investment of 9.48 billion yuan will not be a problem"

the details of fund-raising are unknown to the outside world, but for Shenyang people, it is still regarded as "the fruit of midsummer". It has been 10 years since they put forward the construction plan, with several twists and turns. With the funding problem, we can finally break ground

difficulty in financing

it is understood that Shenyang metro line is 22.048 kilometers long, with an average investment of 430million yuan per kilometer and a total investment of 9.48 billion yuan. As the subway construction is an independent act of the local government, the central government generally does not give financial support. The construction cost of Shenyang Metro Line accounted for about 0.7% of the GDP of Shenyang in 2002 (140billion yuan), and the fiscal revenue of Shenyang in that year was 10.5 billion yuan

if the local government pays for the expenditure of nearly 10 billion yuan in full, it will undoubtedly cause local financial distress

"the municipal government has set up a leading group for metro construction, and decided that 43% of the construction funds for line 1, i.e. 4billion yuan, should be invested by the Municipal Finance in four years and included in the" Tenth Five Year "urban construction plan." Shenyang Planning Commission told the financial times. However, Shenyang refused to disclose the financing details of the remaining funds to the outside world

according to the insider, Shenyang is considering financing through policy loans from the China Development Bank and investment loans from the China Construction Bank. At the same time, it is not excluded to introduce some funds to financial organizations such as the world bank, the Asian Development Bank and the Japan Overseas Economic Cooperation Foundation

however, according to an official of the Liaoning Provincial Planning Commission who asked not to be named, these two methods have certain difficulties for the local government. First, there are more and more projects supported by China Development Bank; However, for the construction of urban rail transit with long construction cycle, long investment payback period and low income level, banks are unwilling to bear financial risks

on the other hand, although the loan interest of the world bank or Asian Development Bank and other financial institutions is low, they have attached conditions to purchase foreign equipment and spare parts during maintenance. Some cities have introduced German car bodies, each amounting to US $1.8 million, accounting for 36% of the investment; The domestic car body unit price is USD 700000 ~ 1.2 million. And the annual purchase of parts maintenance is also controlled by others

ppp (public and private partnership) refers to the partnership between government and enterprises. This concept is widely used by European and American countries in large-scale infrastructure operation, and BOT mode is the most typical one

in the Olympic project of Beijing Metro Line 5 with an investment of 12billion yuan, lanwanling, an internationally renowned infrastructure investment company, and Canada's largest engineering construction company intend to apply the PPP concept to metro construction

the original plan was that Beijing Metro Line 5 Investment Co., Ltd. was established in Beijing, with capital group as the major shareholder, contributing 1.9 billion yuan, and the municipal Metro Corporation and the municipal state-owned assets management company contributing 300million yuan respectively; Canada lanwanling company injected RMB 1.5 billion. So far, Beijing Metro Line 5 Investment Co., Ltd. has a capital of 4billion yuan - according to the approval conditions of the former State Development Planning Commission - the project capital has reached one third of the investment amount, and has the strength to start Metro Line 5

however, people familiar with the matter told us that the joint venture was not established in the end

the contradiction first appears in the "small ticket price subsidy with discrete data" proposed by Beijing, which is quite different from the "pre subsidy" designed by lanwanling

the Beijing municipal government believes that the joint venture company will be responsible for the project investment and financing of line 5, and the project will be completed. Then the Beijing municipal government will subsidize the difference between the cost ticket price and the actual ticket price during the 25 years of operation of the joint venture company

LAN Wanling raised two objections: first, how to pay the subsidy and who will guarantee it? Second, when the government subsidizes, the determination of cost and ticket price becomes complicated

LAN Wanling suggested that the government should first pay the funds that need subsidies to complete the civil construction; Then the infrastructure will be invested and financed by the joint venture to complete the remaining mechanical and electrical equipment and other projects. In this way, the line operation income can recover about 40% of the investment, while the government can complete the construction and operation projects with only half of the funds. After negotiation, the Beijing government agreed to complete the civil works first

however, in June2002, the cooperation between the two sides began to stagnate

an unnamed person from the investment and Financing Department of Beijing Metro Group Co., Ltd., which participated in the metro construction project, said that there was no exact law for the subsidy scheme in China, and lanwanling believed that it was necessary to strengthen legislation

Beijing believes that at the beginning of the cooperation, lanwanling needs to put forward specific plans for operation and maintenance. For example, in this plan, which is also under examination, we should solve the personnel cost in the operating cost of 200 people per kilometer of Beijing Metro - less than 100 people per kilometer of Shanghai Metro and only 12 people per kilometer of Vancouver light rail in Canada

seeking for change

"public welfare projects such as the subway do not make money at all in China. The current operating cost of Beijing subway is 667million yuan, and it is still at a loss." "Only when the ticket price in Shanghai rises to 50 yuan can it be profitable." An insider told the financial times

specimen size small to diameter φ The total investment of 0.006mm gold wire

Shanghai Metro Line 2 has reached 12billion yuan, and the cost per kilometer has risen to a staggering 630million yuan. Line 2 was put into operation in 2000. In 2001, the ticket revenue was 147million yuan. In 2002, the ticket revenue quickly reached 225million yuan, but it is still far from achieving real profits

"assuming a debt ratio of 50% and an annual debt repayment interest of 4%, the annual interest expense of Metro Line 2 will be 240million yuan." Analysis by a doctor of finance from Jiaotong University. Based on this calculation, the annual income of line 2 is not even enough to repay the interest, let alone the annual operating cost of hundreds of millions of yuan, of which the electricity expense accounts for about 40%. In 2000, before the opening of line 3, the electricity expenditure of Shanghai's line 1 and line 2 reached 100million yuan

according to the information, major cities across the country have contacted foreign companies to varying degrees in the subway investment and financing construction. However, due to various reasons, the result is nothing. As for domestic private enterprises, the investment of billions or billions of dollars is beyond their power. Loans from domestic and foreign banks mean that such financing has become a simple government action. Finally, the financial risk is entirely borne by the bank and the local government

in March this year, Shanghai made an attempt to reform the infrastructure investment and financing system. Jiushi company and Shanghai Shentong Group Co., Ltd., the main financiers of Shanghai rail transit, issued "2003 Shanghai rail transit construction bonds" with a total amount of 4billion yuan. However, for the total rail transit construction investment of 100billion yuan in Shanghai during the Tenth Five Year Plan period, issuing bonds is just a cup of water for cars. This investment is no less than a Three Gorges Project

officials of LEGO have previously said that the reform of the national investment and financing system, which is concerned by the society, has recently emerged as a bright spot. It was learned that the relevant reform plan is being accelerated by the national development and Reform Commission. The improvement of the investment system may finally resolve the current confusion

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