Fo­sun joins high-speed rail­way PPP project

China Daily (USA) - - BUSINESS - By REUTERS in Shang­hai

Chi­nese con­glom­er­ate Fo­sun In­ter­na­tional Ltd said on Sept Thurs­day29 it it will will in­vest in­vest in in a 46.246.2 bil­lion­bil­lion yuan ($6.92($6.92 bil­lion)bil­lion) pub­lic-pri­vatepub­lic-pri­vate part­ner­ship­part­ner­ship project too build build a a high­high­speed rail link, be­com­ing the first pri­vate firm to take part in a high-speed rail project.

The gov­ern­ment is keen to lure pri­vate cap­i­tal to in­fra­struc­ture projects to al­le­vi­ate the debt bur­den of lo­cal au­thor­i­ties, and has promised poli­cies to sup­port PPPs.

In Jan­uary, the gov­ern­ment said it would test PPPs in the rail­way sec­tor with eight high­speed and in­ter­city rail projects in­clud­ing one in Zhe­jiang prov­ince link­ing the cities of Hangzhou andWen­zhou.

Fo­sun in an emailed state­ment said that its wholly owned sub­sidiary Shang­hai Fo­sunHighTech­nol­ogy Group Co Ltd signed an agree­ment with the Zhe­jiang gov­ern­ment for that project’s first phase, which will join the cities of Hangzhou and Taizhou.

Fo­sun did not dis­close how much it would in­vest in the project. Bil­lion­aire Guo Guangcheng, chair­man of Fo­sun, said there was much scope for in­vest­ment as in­fra­struc­ture per capita in China lagged that of de­vel­oped coun­tries.

China built the world’s long­est high-speed rail net­work in less than a decade but its na­tional rail­way op­er­a­tor took on heavy debt in the process. At the end of June, China Rail­way Corp’s li­a­bil­i­ties to­taled 4.21 tril­lion yuan.

Fo­sun also said Sun­vi­sion Cap­i­tal, a sub­sidiary of its prop­erty arm, was in­volved in close to 500 bil­lion yuan worth of PPP projects across China.

cost of the first high-speed rail pub­lic-pri­vate part­ner­ship project in Zhe­jiang

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