MTR Corp. Ltd. (00066.HK) will invest in a 49.5 billion yuan (US$7.93 billion) Beijing subway extension project, the Hong Kong Economic Journal reported Tuesday.
Hong Kong’s mass railway operator will make the investment in the Beijing No. 16 Line through its 49 percent-owned Beijing MTR Corp. Ltd.
It will inject 2.45 billion yuan into the subsidiary using bank loans and internal resources.
The agreement allows MTR to operate the line for 30 years but does include any property development projects, the report said.
In a regulatory filing, the company said the new line will include 29 stations and a 50-kilometer rail line.
Investment will be made in two stages, with Beijing MTR Corp. Ltd. responsible for the second phase involving 15 billion yuan.
The money will be used mainly for construction and purchase of rolling stock, equipment and systems.
The project is the fourth in Beijing for MTR Corp.
Translation by Vey Wong
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