In view of the numerous controversies surrounding urban rail transit Public-Private Partnership (PPP) projects, this paper analyzes the main problems faced by PPP projects during the operation period of such projects. To ensure the stability of urban rail transit operations during the operation period and safeguard the interests of all investors, three feasible solutions are proposed from the government's perspective, with an analysis of their implementation processes as well as their respective advantages and disadvantages. The research concludes that early termination of franchise rights through equity transfer is the relatively superior approach, as it offers strong operability, does not affect normal operations, helps maintain workforce stability, imposes relatively low fiscal pressure on the government, and aligns with policy requirements. Finally, taking China's first urban rail transit PPP project that was terminated during the operation phase—the Fuzhou Metro Line 2 electromechanical equipment PPP project—as a typical case, the study provides a detailed account of the entire process of successfully repurchasing the equity held by private investors and terminating the franchise agreement in advance, with the aim of offering reference and guidance for equity repurchase and exit practices in urban rail transit PPP projects.

urban rail transit  /  PPP projects  /  early termination  /  equity transfer  /  operation period