The MTR Corporation has initialled a concession agreement with the Shenzhen government for the investment, construction and operation of Shenzhen Metro Line 4 Phase 2 for 30 years, subject to approval by the National Development & Reform Commission.

The two parties today also signed a memorandum of understanding for co-operation on the investment, construction and operation of Shenzhen Metro Line 2 and Line 3. The initialling ceremony was witnessed by Secretary for the Environment, Transport & Works Dr Sarah Liao and Shenzhen Executive Vice Mayor Xu Zongheng.

Dr Liao said Line 4 will foster better integration between Hong Kong, Shenzhen and the Mainland. She said the agreement marks an important milestone in the partnership between the MTRC and the Mainland in railway development projects, and in cross-boundary co-operation.

RMB6b investment

The MTR will launch a project company to construct Line 4 Phase 2 and to operate Line 4, including the right to use the facilities of Phase 1. It also involves the acquisition of property development rights directly from the Shenzhen Municipal Government at stations and the depot along Line 4 with an aggregate gross floor area of 2.9 million square metres by the project company. The total investment of the project company will be RMB6 billion with a registered capital of RMB2.4 billion.

Line 4 is a 20.5km double-track urban railway running from Huanggang to Longhua New Town, with 15 stations. It will form the major north-south railway corridor linking Hong Kong, through Shenzhen, to the Mainland.

Phase 1 of Line 4, a 4.5km section between Huanggang and Shaoniangong, started service in December, operated by Shenzhen Metro Company. From the date of commencement and operation of Phase 2, the entire Line 4 will be operated by the MTR's project company for 30 years.

MTRC Chief Executive Officer CK Chow said the 'rail plus property' development model has been a highly successful one for the MTR over the past 25 years by not only providing funds for the construction of the metro system, but also creating communities of high quality city living.

"We are very pleased to be able to apply this successful business model in Shenzhen and are confident in delivering a new railway with well planned communities for the people of this fast growing city," he said.