By Wei Liming, Yang Guang
Published: 2007-10-17

In October 1994, the parent company of Huadu Road and Bridge Project Development Corporation undertook the construction of the Siyang segment, and, afterwards, cooperated with Huadu Development Corporation in Australia to operate road management services with a concession period of 50 years.

Mr. Li, a principal of Huadu Administration of Toll Charges for Roads and Bridges, tells the EO that the duration of toll charges is 50 years because the concession period in the contract says so. In this way, the road avoids the regulation's restriction of the duration to less than 30 years.

In fact, Huadu Road and Bridge Project Development Corporation conceded 10 percent of its right to charge to Huiyu Corporation in Hong Kong, with a transfer fee of 52.23 million yuan, which means the government was already capable of repaying all the loans at that time. But according to Mr. Li, the loans haven't been paid off so far.

Before the construction of the Siyang strip, the Beijing-Shijiazhuang highway, the first highway in Beijing, also experienced a transfer of management rights. In the end of the year 1999, Beijing transferred its rights to the road to Beijing Capital Road Development, with a concession period of 30 years starting from January 1st 2000.

However, toll stations of the highway began charging right after its construction in 1987 and have charged for the 13 years before the concession. According to statistics released from Audit Office of Beijing in 2005, the loan to build this expressway totals 724.35 million yuan, and was paid off before December 2000. However, as Beijing Roadway Administration Bureau reported to representatives of People's Congress, the debt will be paid off in 2026 according to the calculation of Beijing Capital Road Development Co., Ltd. In this way, the period of toll charges increases by 27 years to a total period of 39 years.

According to statistics from certain representatives of Peoples' Congress including Li Shuyuan, the present 9 highways in Beijing have all been transferred from non-profitable to profitable. Li Shuyuan believes that the transfer of right of management is the fundamental reason why toll charges continue although debts have been paid off.

 1  |  2  |  3  |  4