[photopress:Sichuan.jpg,full,alignright]Construction will start next month on the first privately-funded railway project in Southwest China’s Sichuan Province. The Pengzhou-Bailu Railway is being built under the BOT (Build, Operate and Transfer) scheme which encourages the use of private funds.
Jiang Wenlong, an official with the Sichuan Provincial Development and Reform Commission said the builder, the privately-owned Sichuan Dezhong Investment Construction Company, will own the right to operate the railway for 30 years before transferring it to the provincial government.
A ministry official said BOT would not become a major investment channel in the railway sector. He said, ‘It is because building a railway is very costly, and the returns, though stable, takes a longer time than other infrastructure projects.’
Lai Zheng’ao, chairman of the Sichuan Dezhong Investment Construction Company, said the Pengzhou-Bailu Railway will be 29 kilometers long and cost RMB420 million yuan ($55 million) and it is expected to be completed by next January.
The railway will serve the Sichuan Yadong Cement Company, and the 800,000-ton ethylene and 10 million-ton refinery project in Pengzhou. Lai Zheng’ao said, ‘We can recoup our investment within six to seven years.’
Source: China Daily