Overseas investors welcome to bid on projects in Beijing

Foreign investors are welcome to finance the capital's infrastructure construction projects.

Six areas of Beijing's infrastructure construction will be open to overseas and domestic investors this year, said Peng Bo, a spokesman for the Beijing Commission of Reform and Development, the city's economic planner.

The six areas include rail transport, city roads, the rail transit complex, drainage treatment, garbage disposal and heat supply in townships.

A total of 126 projects will need an investment of 338 billion yuan ($55.15 billion), of which 130 billion yuan will be channeled from social capital, according to a plan released last week by the commission at the 5th Beijing Investment Fair.

The first phase of the plan has 27 projects, which need an investment of 68 billion yuan from social capital, said Yang Xuhui, a commissioner of the economic planning body.

The second phase, with 99 other projects, will call for investment from social capital later this year, Yang said.

Private companies will enjoy the same policies in terms of land, price, investment return and supporting facilities as their State-owned counterparts, according to a statement from the commission.

The internal return rate of investment in such projects will be 8 percent, and the Beijing government will take measures to make sure investors get a reasonable return, Yang said.

He said that information about the city's large public projects will be released to the public in advance, and investment qualifications and operation standards will be also released.

Among the 27 projects, the Pingguoyuan rail transit complex is the first of its kind to be open to social capital.

To attract investors, business development will be considered when designing the project, said Wang Jinghui, a manager at Beijing Gonglian Transport Transit Construction Co, a State-owned company responsible for the design of the Pingguoyuan complex.

Construction of the Pingguoyuan complex will start in the first half of next year, and the authority is working on the bidding plan for the project, said Peng Bo, spokesman for the Beijing Commission of Reform and Development.

Peng told China Daily that social capital will be introduced to six other rail transit complexes based on the experience with the Pingguoyuan complex.

Beijing MTR Corp, a public-private joint venture with Hong Kong MTR, has signed a contract with the Beijing municipal government to invest in and operate the subway's Line 14, one of the 27 projects.

Beijing MTR Corp said in a statement that the company hopes to participate in the operation of more subway lines in the city.

Through their experience in operation and management, Hong Kong MTR can improve services and promote the progress of the whole industry in Beijing, according to the statement.

The Beijing Commission of Transport, Beijing Water Authority and Beijing Commission of City Administration and Environment signed strategic agreements with potential investors last week.