MTR Corporation Ltd signed the Operation & Maintenance Concession Agreement with Shenyang Metro Group Company Limited and Shenyang Municipal Government for the operation and maintenance of Shenyang Metro Lines 1 & 2.

     Under the agreement, a Joint Venture Company (JVC) will be formed by MTR Corporation (49%) and Shenyang Metro Group Company Limited (51%), a wholly-owned subsidiary of Shenyang Municipal Government, to operate and maintain the two metro lines for a franchise fee within the concession period of 30 years. The total investment of the JVC is RMB$400 million in which RMB$200 million is registered capital. The concession includes pre-operation readiness, train and station operations as well as the maintenance, but not replacement of assets for which a fee will be paid to the JVC.

     Shenyang Metro Lines 1 & 2 are the first two metro lines among the eleven planned lines of Shenyang city. The two lines are expected to commence service in 2010 and 2012 respectively. The total capital expenditure of Line 1 and 2 is about RMB$20 billion which is fully funded by Shenyang Government. The 28-km Shenyang Metro Line 1 will form the east-west traffic corridor in Shenyang with 22 underground stations while the 22-km Shenyang Metro Line 2 will form the north-south corridor with 19 underground stations connecting the southern and northern parts of Hun River of the city.

     Meanwhile, the Corporation has also signed a Cooperation Agreement to explore possible property development opportunities along the metro lines with Shenyang Metro Group, including projects along the 揋olden Corridor�. 揋olden Corridor�, a revitalization project in Shenyang, is identified by the Shenyang Government as a new focus to create a significant economic belt in the city. Shenyang Metro Line 2 will be constructed along the Corridor to help connect the planned commercial projects.