1.Background     The construction of original part of Tianjin subway line began the year 1970, and is completed in 1984. The line starts from Tianjin west station and ends Xinhua Road station. The subway line is shallow-butying style with the length of 7.4 km. There are 8 stations every 1 km. There are 8 passenger trains and 24 coaches. A temporary maintenance overhaul yard is built on Changjiang Road, a dispatcher center on Erwei Road and a 35kv substation in Xinan Jiao. This line is a part of the No.1 Subway. Till now, the line has put into operation for 20 years.     Seven lines are planned by Tianjin municipal to encourage the development of city transportation and become fast, safe, high-efficiency and environment protection city. Transport net is 154 km in length. During the 10th Five-Year Plan period, the aim is to target the establishment of fast transport system in the urban districts and complete the No. 1 Subway.     2.The necessity of the project and marketing forecast     Tianjin is one of the four municipalities directly under the Central Government. It is a transport hub for land and sea routes in the northern part of China. Tianjin is a comprehensive industrial base with advanced techniques, a multi-function economy and trade center and a modern international port city. At present, the public transport can't meet the demand of passenger flow, and seriously crowded and all these restrict the economical and social development in Tianjin.     Nowadays, the development of fast-lane transport is the tendency in the large cities of the world and the necessity of solving the transportation problem in large cities in China. According to the General Plan in Tianjin, it is essential and necessary to construct a fast, safe, large capacity, all-weather transport lane.     No.1 Subway is the most important line in the transport plan in Tianjin. It can not only improve the infrastructure and provide the safe, fast, comfort vehicles, but also encourage the establishment of being the vital economy center in the north China.     Forecast in the volume of passenger flow: the maximum one-way section flow in the morning rush hours of the initial stage is 22491 person-time/ hour, the maximum one-way section flow in the morning rush hours of the long-term stage is 45597 person-time/ hour. The total passenger flow of the initial stage (the year 2008), the short-term stage (the year 2015) and the long-term stage (2030) is 223 million person-time/year, 395 million person-time/year and 494 million person-time/year.     3.Construction scale and content     No.1 Subway ranges from Liuyuan to Shuanglin with the length of 26.188 km. It includes original 7.335 km underground and 8.043 km newly-built underground. The surface route is 1.509 km with the transition road of 0.558 km. Along the line, there are 22 stations, in which there are 8 high-framed stations, 13 underground stations and 1 surface station. The course from Liuyuan to Shuanglin is the stretch to the north and the south. No. 1 Subway covers three sections: the section from Liuyuan to the West Station, the section from Xinhuan Road to Shuanglin, which are newly built, and the original section from the West Station to Xinhua Road. The line passes through business center areas, such as Xinanlou, Binjiand Road, Xiaobailou and Nanlou; residential areas, such as Xihengdi, Benxi Road, Dingzigu, Xiawafang, Nanlou, Jianshan and Xiaohaidi; industrial areas, such as Tucheng, Chentangzhuang and Huidui; large culture and sports activities center, such as Hongqiao Stadium, Tianjin Youth and Children Center, Hexi gymnasium, People Park; a transport hub, the West Station.      Estimated total investment of the project is 6.896 billion yuan.     4.Economy analysis of the project     In the financial assessment, the internal rate of return (total investment) is 4.65%, the period of recovery is 21.2 years. In the national economy assessment, the internal rate of return is 15.74%, which are higher than 12%, the social discount rate. The net present value of the total investment is 1,274,441,480,000 yuan. The project has a certain ability of risk-resistant according to the sensitive analysis.      5.Progress of the project         The project has been taken as an item after the approval of State Planning Commission. The planned time for going into operation is the year 2001, and the project is completed by the end of the year 2005.      6.Demand and ways of financing     To more domestic and overseas investment, multi-aspect and multi-channel ways of financing are expected together with international usage and preferential policies. The ways of financing include joint venture, co-operation and foreign investment and BOT.