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Huge loan for new Beijing subway line
( 2002-10-18 17:06 ) (8 )

The Beijing Branch of China Construction Bank will provide 8 billion yuan (about 964 million US dollars) for the planned No.5 subway line in the Chinese national capital, Beijing Daily reported Friday.

According to an agreement signed Thursday between the bank and the Beijing Subway Group, the first 3 billion yuan (about 362 million US dollars) will be used as working capital to cover relocation costs and other preparatory work, said the newspaper.

The 27.6 km subway line will start from Songjiazhuang in southern Beijing's Fengtai District and end at Taipingzhuangbei in the Changping District of northern Beijing. There will be 22 stations.

The entire construction is estimated to cost 12 billion yuan ( about 1.45 billion US dollars), 4 billion yuan (about 482 million US dollars) of which will be provided by three companies including the Beijing Subway Group. The remainder will be covered by bank loans.

Construction of the No.5 subway line will begin in December this year.

Beijing plans to invest 63.8 billion yuan (7.69 billion US dollars) in eight planned light rail projects over the next six years, according to earlier reports.