The Beijing Subway Line No.4 is 28.65 kilometers long in total and there are 24 stations along the line, running across Fengtai, Xuanwu, Xicheng, and Haidian administrative districts from south to north. It is the north-south traffic artery on the west part of the city proper. The National Development and Reform Commission approved the feasibility study report for the project in 2004. The line is estimated to be constructed and open to traffic in September 2009. Upon completion, daily passenger carrying capacity of the line will be over 500,000, which will reduce the north-south traffic jams on the west part of Beijing city to a great extent.

In order to implement the principle of reforming investment and financing system of infrastructure, our company takes the lead in researching and developing the PPP licencing program in accordance with the characteristics of the rail public transportation industry in the country, advancing by doing the pilot experiment with the No.4 Line project, under the leadership and support of the municipal Party committee, the municipal government, and the departments concerned. After conducting standardized operations in such links as early stage preparation, open invitation to investment, competitive negotiations, and examination and approval of the project, the national Development and Reform Commission approved the application and the Licence Agreement for the Line No.4 PPP project at the end of September, 2005. On April 12, 2006, Beijing Municipal Committee of Communication concluded and signed “Beijing Subway Line No.4 Licence Agreement” with the licencing company invested and established by Hongkong Railway-Beijing Capital association on behalf of the municipal government. According to the agreement, the licencing company will be responsible for making an investment of approximately 4.6 billion yuan and conducting the construction as well as performing operation management for a period of licensing operation of 30 years for the subway line No.4.

The Beijing Subway Line No.4 PPP project is the first infrastructure project operated based on marketization by introducing Hongkong capital and deploying the form of licencing operation in the area of rail transport in the country and it is an significant innovation in financing for infrastructure in the city of Beijing.

Operation of the project is a symbol showing the reform in investment and financing system of infrastructure in Beijing has entered a new stage and it is an important achievement scored under the system of CEPA through economic cooperation between Beijing and Hongkong, which is beneficial to the introduction of the world’s advanced managerial principles in subway construction and operation, will further improves the Beijing subway operation service, is advantageous to the fulfillment of the policy to devote major efforts to developing public transport in Beijing, and will help establish a new transportation system in the city.

(Glossary: PPP is the abbreviation for the Public Private Partnership. PPP is a partnership between the public and private sector by concluding and signing an agreement clearly defining the rights and duties of both sides for the purpose of construction of certain public facilities, public transport means and related service projects. PPP mode rose in the early 1980s in Britain.)