Shenzhen to spend 10b yuan on subway to suburbs

PUBLISHED : Friday, 21 May, 2004, 12:00am
UPDATED : Friday, 21 May, 2004, 12:00am

Shenzhen will spend 10 billion yuan in the next four years building a subway line linking the city centre to the suburbs.

Xinhua said the new line would see the city's subway system, which is due to open by the end of the year, expanded to the Buji, Longgang and Hengang districts.

The 33-km line would enter service by 2008 and could help Shenzhen solve its land shortage problem, it said. It could provide the infrastructure for new towns to be developed.

The Shenzhen city government and Longgang district government will provide half of the 10 billion yuan needed for the project.

The rest would be raised from bank loans, the capital market and private-sector investment.

Shenzhen so far has invested 36.4 billion yuan on its subway system, which has five lines.

The MTRC Corp in January signed a 6 billion yuan deal with Shenzhen Metro to build a line.

It gives it the right to build and operate the second phase of Shenzhen's fourth subway line and acquire land along the route for housing development.

It will be handed back to the city's municipal government at no cost after 30 years.

The MTRC will also help Shenzhen Metro train staff. Shenzhen faces severe traffic congestion and a lack of land, with one report saying there was just 30 sq km of unused land left in the city centre.