(Yicai Global) Nov. 19 -- A unit under state-owned infrastructure services provider China Communications Construction has won a USD5 billion contract to build Line One of the new metro in the Colombian capital Bogota.

China Harbour Engineering landed the bid to handle fundraising, design and construction, procurement, testing and operations and maintenance of the project, its Beijing-based parent said in a statement yesterday. It will hold a 28 year, three month franchise over the contract, which includes seven years and three months for construction.

The Bogota Metro is a fully elevated and autonomous metro system spanning nearly 24 kilometers. It includes 16 stations, depots, viaducts, connecting lines, signal systems and will require 30 seven-carriage trains. Ancillary projects will include rebuilding depot repair plants, creating bus rapid transit systems, building 22.6 kilometers of municipal roads and urbanization.

The Colombian government entrusted Bogota Metro to source and prepare land for the transport network and to hand out subsidies. The company will make milestone payments to its contractor during construction and quarterly payments throughout the operations period of the contract.

China Harbour also agreed to inject at least USD260 million into the project after seven years, while the Colombian government and financiers will provide the capital for construction.

Editor: James Boynton