The investment attraction arrangement for the New Airport Line, Beijing Subway was recently signed in Beijing. The New Airport Line is a subway route linking the central city with the new airport in Beijing. It is one of the primary supporting facilities for the new airport, and therefore the investment in it, as well as its construction and on-schedule operation are extremely significant for the successful operation of the Beijing new airport.
The New Airport Line is located out of Sanhuan, at the south of Beijing, starting northwards from Caoqiao, Fengtai District, and extending southwards towards the north terminal of the new airport. The entire line is approximately 41 km, part of which, namely around 11 km, is proposed to be co-constructed with the New Airport Expressway. The total investment in this project amounts to RMB 29.2 billion, of which about RMB 17.3 billion is social investment and was operated under PPP model by a project company co-established by investors representing the government and social capital investors.
In the PPP project in respect of the New Airport Line, the “A+B” structure was adopted. Accordingly, social capital investors were selected through public bidding, and an innovative PPP model was applied to the subway project, under which, in addition to entering into a public-private partnership in respect of the “equipment and facility-related investment + operation” as what is traditionally done in a subway-related project, the construction phase of the project was also opened for social investment, i.e. construction works were included in Part B of the “A+B” structure to invite private capital participation.
In this project, JunHe represented Beijing Infrastructure Investment Co., Ltd. and Beijing Municipal Commission of Transport successively. For two years, the team from JunHe successfully overcame various challenges, including project structure adjustment and change of external conditions, and finished all tasks excellently by exerting a great professional dedication.
JunHe is the only law firm fully involved in all PPPs in respect of subways in Beijing. The execution of the PPP arrangement for the New Airport Line is another incredible accomplishment of JunHe in subway-related PPP.
This project was led by the partners Ms. XIE, Zheng, Mr. QIN, Yu (Bill), Ms. Deng, Teresa Liang, Ms. CHENG, Yuan and Mr. Guo, Alex Yan, and undertook by the partners Ms. XIE, Zheng , Ms. CHENG, Yuan and Mr. Guo, Alex Yan.