It’s learned from Dalian Branch of CDB yesterday that, CDB has offered a loan of 4.3 billion yuan to Dalian first PPP pilot projects including stretch project of No. 202 track line and No. 3 rapid railway project. The total investment reaches 9.221 billion yuan and the overall length of the operation distance reaches 103.833 km. These are the first cooperation projects with German railway Co., Ltd. and also the first PPP pilot projects in Dalian.
The two projects have been finished. Stretch project of No. 202 track line started from May, 2009 and No. 3 rapid railway started from September, 2000, with a total investment of 4.648 billion yuan. The initial construction funds came from governmental fiscal funds. CDB gives full play to functional advantages of developmental financial institution and unites related departments of Dalian to innovate in building PPP financing patterns. The projects adopt TOT operation mode with the franchise period of 25 years. The general process of the mode is as follows. The government transfers project assets to PPP project companies and confers 25 years’ franchise rights. The project companies have the ownership of benefits during the operation period and should transfer the ownership to the government after the operation period. The borrower of the loans is the project company and the sources of repayment come from project operating incomes and government subsidies.