作者：金杜律师事务所 King & Wood Mallesons
6 April, 2017, advised by King & Wood Mallesons (KWM), Haining Municipal People’s Government authorized the signing of Hangzhou-Haining Intercity Railway PPP Project Cooperation Agreement between Haining Transportation Bureau and Zhejiang Hanghai Intercity Railway Co., Ltd., which marked the official launch of the Hangzhou-Haining intercity railway PPP project. With a total investment of 13.611 billion yuan, the project uses a PPP model involving public and private capital. It is expected to be completed and open to traffic by the end of 2020. It is one of the first batch of national demonstration projects sponsored by the Ministry of Finance and an important part of the planned intercity railway in Zhejiang province. It is also the first PPP project invested by China Government-Enterprise Cooperative Investment Fund Co., Ltd. (“China PPP Fund”) in Zhejiang. The project is on the list of the National Development and Reform Commission’s PPP projects and is of important demonstrative significance.
Upon completion, the railway will start at Yuhang, and terminate at Biyun, Haining. With a length of 48.073 kilometers, the railway will connect 13 stations in total. Authorized by the Haining government, Zhejiang Hanghai Intercity Railway Co., Ltd., a PPP project company, has been established with funding from Haining Traffic Investment Group Co., Ltd., Haining Infrastructure Investment Fund Co., Ltd. and China PPP Fund. The PPP project company has signed an agreement with the project implementation agency, under which the cooperation will last 29 years, including four years of construction and 25 years of operation. During the term of cooperation, the project company will be responsible for project financing, survey, design, construction, operation and maintenance and handover. At the expiry of cooperation, it will hand over all the assets to the project implementation agency free of charge.
In close cooperation with the overall advisory service provider, PricewaterhouseCoopers Consultants (Shenzhen) Limited, KWM provided legal services to the Haining government in the whole life cycle of the project, including preliminary legal research, preparation of implementation programs and project procurement documents, establishment of the project company, and drafting, negotiation and signing of the PPP cooperation agreement. The project was led by partners Shaun Lee (Shanghai) and Fang Rong (Beijing).
Shaun Lee said at the Signing Ceremony for the Agreement, “We are honored to assist the Haining government in signing this important project agreement. The project has strong government support. Unlike previous PPP projects, the Hangzhou-Haining intercity railway project is a great reference for similar projects in the future as it will help the cities and towns it passes develop and upgrade their industries, further improving the regional economy and competitiveness. Leveraging our leading expertise in the field of PPP and our rich experience in serving government agencies, our team has provided quality, efficient and professional services that great impressed our client and other service providers.”