(It was considered at the 92th ordinary meeting of the Government of the Shanghai City on 6 December 2010 for publication, effective 1 May 2011, through Order No. 55 of the People's Government of Shanghai, 20 December 2010)

Chapter I General

Article 1 (Legislative purposes)

To regulate the operation of urban infrastructure concessions, preserve the legitimate rights and interests of the concessionaire, improve the quality of public products and public services, guarantee public interest and public safety, and develop this approach in accordance with the relevant laws, regulations.

Article 2 (Definition)

This approach refers to the Government's legal choice of legal persons outside the People's Republic of China or other economic organizations, which authorize it to operate a city infrastructure within a period of time and scope to provide public products or public services activities.

Article 3

This approach applies to the application of a licence operation within the city's administration.

The construction and operation of the following urban infrastructure projects can be implemented:

(i) Water supply, heating, sewage treatment, garbage treatment, urban roads, roads, urban orbit transport and other public transportation projects;

(ii) The Government of the city considers it necessary to implement other urban infrastructure projects operating under the licence.

Article IV

Concessions may take the following:

(i) Within a certain period of time, the Government authorizes the concessionaire to invest, build and operate urban infrastructure and to transfer no compensation to the Government after the expiry of the period;

(ii) During a period of time, the Government authorized the concessionaire to operate the urban infrastructure that had been built and to transfer no compensation to the Government after the expiry of the period;

(iii) Other modalities agreed by the Government of the city.

Article 5

The application of concessions should be guided by the principles of public interest and openness, equity and justice.

Article 6 (Promoting participation)

Domestic and foreign enterprises, other organizations and individuals are encouraged to take a variety of forms, such as sole-source, joint ventures and cooperation, in accordance with the law.

Article 7 (Management system)

The municipal development reform administration is responsible for the integrated coordination of the operation of the city's licence.

The municipal industry authorities are responsible for the specific implementation and supervision of the concessional operation projects in the city's administration area, and are in accordance with the authorization of the Government of the city.

Concessional projects in specific zones and district administrations may be implemented and monitored by the zones, the zones' government and the signing of a licence operating agreement.

The specific division of labour between the municipal and district authorities and the local governments in the implementation of the licence operation project is determined by the municipal development reform administration.

Within their respective responsibilities, the relevant administrations such as the construction of transport, the planning of the land, environmental protection, finance, prices, business, audit and inspection are governed by the law.

Chapter II Grant of the right to work

Article 8 (item requirements) Concession projects should be in line with the planning of economic and social development for the citizens of the city, urban overall planning, urban infrastructure planning and urban development needs.

Article 9

The implementation of the licence operation project should be developed by the municipal industry authorities and the district and the people's government (hereinafter referred to as the executive body).

Implementation programmes should include the following:

(i) The name of the project and its basic situation;

(ii) The executive body of the project;

(iii) Basic economic technical indicators for the project;

(iv) The conditions and options that the concessionaire should have;

(v) The draft licence agreement and the duration of the licence operation;

(vi) Total investment, investment returns, prices and their measurements;

(vii) Government commitments and guarantees;

(viii) Other matters should be identified.

Concessional projects are paid by Government-designated units or are required to be included in cost accounting for government pricing projects, and implementation agencies should incorporate the calculations into implementation programmes.

The executive body shall approve the approved project proposals or project approval advice, as well as the planning of inputs from the land and environmental management, as an annex to the implementation programme, using the concessionary operating modalities set out in Article 4, subparagraph (i), of this approach.

Article 10

The executive branch should report the implementation programme for the concessional operation project to the urban development reform administration. The urban development reform administration sector should review implementation programmes in the light of the fact that, following the receipt of the implementation programme, the relevant administrations, such as the construction of transport, the planning of the land, environmental protection, finance, prices, and the business sector, should have written reviews. The urban development reform administration will be accompanied by the executive branch, which is approved by the Government of the city following a review of the implementation programme.

Concessional projects carried out by the zones, the communes' governments should be implemented in advance with the consent of the municipal industry authorities.

In accordance with Article 3, paragraph 2, subparagraph (i) of this approach, the executive body shall seek the advice of the municipal transport administration prior to the implementation of the programme's urban development reform administration.

As a major concessional operation project, the municipal development reform administration should organize expert arguments in the process of finalizing the implementation programme.

Article 11

After approval by the Government of the city, the executive branch shall select the concessionaire by law through tendering. The solicitation documents should be in line with approved implementation programmes.

A bidder or a bidder is not in accordance with the terms of tendering, which may be determined by competitive negotiations.

Article 12 (Agreements)

After the determination of the licensor, the executive branch and the licensor shall enter into a licence agreement. Concessional agreements should be consistent with approved implementation programmes and solicitation documents.

Project companies need to be established and the concessionaires should register project companies in accordance with the provisions, and the regulations of the project companies should be approved by the executive branch.

The rights and obligations of the licensor shall be transferred to the project company, with the prior consent of the executive body and the written agreement. Their rights and obligations are followed by the concessionaire when the project company fails to perform or is unable to fulfil the relevant obligations.

Article 13

The licence agreement shall include the following:

(i) Project name, content;

(ii) Concessions, regional, scope and duration;

(iii) Whether the establishment of project companies and the scope of operation of project companies, the registration of capital, the manner in which the shareholders are funded, the proportion of funds and the transfer of the equity;

(iv) Number, quality and standards of products or services provided;

(v) Maintenance and updating of facilities;

(vi) Performance monitoring;

(vii) Terms and modalities for financing;

(viii) Modalities for investment returns and the identification and adjustment mechanisms;

(ix) Determination methods, standards and procedures for price and fees;

(x) The right to facilities;

(xi) The rights and obligations of the concessionaire;

(xii) Implementation guarantees;

(xiii) Risk sharing during the licence period;

(xiv) Government commitment and security;

(xv) Emergency pre-referral and temporary takeover of advance cases;

(xvi) The modalities, procedures and procedures for the transfer of projects after the expiration of the licence period;

(17) Changes, early terminations and compensation;

(xviii) Liability for default;

(XIX) Modalities for dispute resolution;

(20) The specific oversight and inspection responsibilities of the implementing authority for the licence operation;

(xxi) There is a need for clear other matters.

Article 14.

In the licence agreement, the parties to the agreement may agree to the concessionaire or the project company (hereinafter referred to as the owner of the project) to obtain a return through the following:

(i) Consumer fees in accordance with the licensed products or services;

(ii) The Government granted other development-related benefits related to the licence operation;

(iii) Government subsidies accordingly;

(iv) Other modalities agreed by the Government of the city.

Article 15

Concessional projects receive income from user fees through sales services channels, their products or service prices are generally determined in accordance with the criteria published by price authorities; they are subject to separate pricing limits, and are subject to price laws, regulations and related provisions.

The price authorities may agree to adjust prices in accordance with the relevant laws, regulations or the licence agreement. If there is a change in the agreement, which relates to the adjustment of separate pricing criteria, prior approval by the municipal price authorities.

Article 16

The duration of the licence should be determined in accordance with industry characteristics, scale of operation and mode of operation, up to 30 years. The law, legislation and regulations provide otherwise, from their provisions.

Article 17 (Government commitment)

In the licence agreement, the Government can commit to the elements relating to land use, the provision of the relevant urban infrastructure, the prevention of unnecessary competitive project construction, the necessary reasonable subsidies, but not to undertake commercial risk sharing, fixed investment returns and other matters prohibited by law, regulations and regulations.

Article 18

After the signing of the licence agreement, the owner of the project shall be subject to the relevant administrative procedures. Matters relating to the administration of the administration have been reviewed without any duplication of review; review of outstanding matters shall not lead to substantive changes in the content of the licence agreement.

Article 19

The executive branch shall, within 30 days of the signing of the licence agreement, submit the agreement to the municipal development reform administration. Of these, it is in accordance with article 3, paragraph 2 (i), of this approach, which provides for a licence operation project, and the executive branch should also report on the construction of a transport administration.

Chapter III Implementation of the right to work

Article 20

Project operators should provide safe, qualified products and sustained, user-friendly, standard-compliant services in accordance with the licence-based agreement and provide public products or public services to consumers generally and without discrimination, in accordance with the agreement.

Article 21

Project operators should conduct regular inspections and maintenance of concessional operating project facilities, in accordance with technical norms, ensure the functioning of the facility and report on the operation of the facility to the implementing authority, except where otherwise agreed by the licence agreement.

Article 22 (Asss of emergencies)

Implementation agencies and project operators should develop emergency preparedness cases and, after the occurrence of a sudden incident, trigger emergencies in a timely manner to maximize the availability of public products and public services.

Article 23

Project operators should send the midterm long-term development planning, annual operating plans, annual operating reports, annual financial reports and other important matters to the implementation agencies in a timely and complete manner.

Article 24 (Information management)

Project operators should collect, collate and maintain information on the construction and operation of the concessional projects.

Article 25

Without the consent of the implementing agency, the owner of the project shall not transfer, rent, custody, mortgage or otherwise dispose of assets, such as the right to land use, facilities and enterprise unit rights, associated with the licence operation.

During the licence period, the owner of the project shall not use the loan, facility and associated land-use rights of the licence project for purposes other than the licence operation.

Article 26

During the period of the licence operation, the parties to the agreement may, in consultation, change the licence operating agreement, but shall, in accordance with article 19 of the scheme, report the relevant administrative sector reserve. Among them, the licence agreement requires a significant change, and the executive body should be given the approval of the Government of the city by 30 days in advance. In cases where significant changes are made, the licence agreement should be clear.

The executive branch shall consult the project operators because of laws, regulations, amendments or repeals or the need for changes in the licence agreement between rural and urban planning, technical standards, policy major adjustments, and the implementation authority may, in consultation with the parties, be able to reach agreement and, subject to the approval of the Government of the communes, the granting of a reasonable compensation to the project operators.

Article 27

The executive branch shall strengthen the guidance, supervision and management of the licence operation of the project operator and perform the following functions:

(i) Develop quality evaluation criteria for product services and assist the price authorities in the conduct of a trial of the Government's price costs and to make price adjustments;

(ii) To oversee the implementation of statutory obligations and agreed obligations by project operators;

(iii) Oversight inspections of the operation of the project operator, the quality of products and services and the safety of production;

(iv) To receive complaints from the public about the operators of the project;

(v) Submission to the Government of the annual licensing inspection report;

(vi) In specific cases, the temporary takeover of the licence operation project;

(vii) Other duties agreed upon by law, regulations, regulations or agreements.

Article 28

Commercial secrets, technical secrets, and confidentiality obligations of the executive and other administrative bodies and their staff are assumed to be known to the operators of the project in the implementation of the licence operation and monitoring management.

Article 29

In the case of special circumstances, the owner of the project is required to provide public products or public services outside the licence agreement agreement, and the executive body shall be reported to be implemented after the approval of the Government of the city, but shall be given reasonable compensation to the project operator.

Article 33 (Status management and assessment system)

The executive body should establish and preserve the licensed business project file.

The executive branch should monitor, analyse the implementation of the licence operation project and conduct regular integrated assessments of project implementation with the specialized agencies of the relevant sector and transmit the assessment reports to the urban development reform administration. The assessment cycle is generally not less than two years, and an annual assessment can be carried out in exceptional circumstances. The content of the assessment should include the quality of products and services and the quality of equipment.

Article 31

In the course of the concessional operation, the project operator has one of the following cases and shall take a temporary takeover:

(i) The occurrence of major emergencies within the enterprise has resulted in the inability of project operators to provide public products and public services in accordance with the licence agreement;

(ii) The circumstances under article 40 of this approach;

(iii) Other unforeseen events, which have seriously endangered or may seriously endanger public interest, public safety, etc.

Article 32 (Interim takeover of decisions)

In the case of article 31 of the present approach, the executive body should, with the approval of the Government of the people of the city, initiate a provisional takeover of the advance and take a decision on the relevant urban infrastructure. A specific temporary takeover of the advance case was established by the executive body.

Temporary takeover decisions should include taking over the grounds, taking over the personnel, taking over the contents, and taking over the period of time, and should be made public.

Article 33 (Interim takeover)

During the interim takeover, the executive branch shall take over the decision in accordance with a provisional takeover. Project operators should perform their duties in good faith, cooperate with the takeover and receive oversight by the taking-off.

Article 34 (Option of temporary takeover)

In one of the following cases, after the approval of the Government of the People's Republic, the temporary takeover was terminated and the announcement was made:

(i) Project operators have resumed their normal business capacity;

(ii) Other unforeseen events that seriously endanger or may seriously endanger public interest and public safety have disappeared;

(iii) Other cases where temporary intervention should be terminated.

Article 35 (Social oversight)

Project operators should communicate the quality, technical standards and information on public interest and public safety to society in a timely manner.

The public of society has the right to oversee the operation of this city and to make recommendations and observations to the executive organs.

Chapter IV Termination of the right to work

Article XVI (Conference of Empowerment)

Any unit or person shall not terminate the licence of the owner of the project in violation of the provisions of the law, regulations, and this approach.

Article 37 (Option of expiry of the term)

Concessions have expired, and the licensee of the project has been terminated. The parties to the agreement shall process the handover and takeover of the relevant urban infrastructure, information and archives, in accordance with the agreement of the licence operating agreement.

Article 338 (Actual termination)

During the period of the licence operation, the owner of the project shall not immediately terminate the licence operation.

In the event that force majeure does not operate properly, the owner of the project may submit an application to the implementing agency for the early termination of the right to do so, and should allow it to terminate the right to do so in advance of the approval by the executive branch.

For other reasons other than force majeure, the owner of the project shall apply in advance to the executive branch and, with the approval of the executive branch, the granting of a licence agreement and the termination of the right to operate in advance. The executive body shall respond within three months of receipt of the request.

Prior to the release of the licence agreement, the owner of the project should perform the related duties in accordance with the licence operating agreement.

Article 39 (Deployed in advance of public interest)

In the event of legal, regulatory, regulatory amendments or repeal, or significant policy adjustments, the executive branch may, upon approval by the Government of the People's Government of the city, reclaim the right to operate in advance, but shall be given reasonable compensation to the project operator in accordance with the agreement of the licence operating agreement. Concessional agreements do not agree on compensation, and the parties to the agreement may consult to determine the compensation programme.

The parties to the agreement were unable to agree on the compensation programme, and the executive body could prepare a compensation programme to compensate the net value of the fixed assets constructed by the project operator for the maintenance of the operation.

The compensation programme was implemented after the approval of the Executive Body of the People's Government.

Article 40 (referred in advance of default by the operator)

In one of the following cases, the executive branch shall be responsible for the change and may, following the approval of the Government of the urban people, recover its licence in advance, and the project operator bears the corresponding liability:

(i) The owner of the project violates the legal, regulatory, or regulatory provisions or the consent of the licence agreement, which is serious;

(ii) The operators of the project do not fulfil the obligation to repair and update the rehabilitation to endanger public interest and public safety;

(iii) Without the consent of the implementing body, the owner of the project has unauthorizedly transferred, rent, quality, mortgage or otherwise disposed of the assets and interests of the licence and the land-use rights, equipment and enterprise unit relating to the licence operation;

(iv) The owner of the project's self-continuation, chewing, affecting public interest and public safety;

(v) Public products and public services provided by project operators do not meet the criteria and requirements and seriously affect public interest;

(vi) Other cases where the law, regulations, regulations or the licence agreement is agreed.

Article 40 (Processary recovery)

The executive branch shall, in accordance with the law, recover the right to operate in advance of the licence and shall notify the owner of the project in writing, such as the date of recovery, and make a public declaration. The project operator may make a written plea or request a hearing within 30 days of receipt of the notice.

Article 42 (Transfer of information and archives)

In advance the termination of the right to operate, the project operator shall, within the time specified by the implementing body, communicate the information and archives necessary for the proper operation of the licence operation to the implementing authority, in accordance with the agreement of the licence operation.

Article 43

The granting of the right to operate at the end of the licence period or in advance shall continue to apply the concessional manner to the urban infrastructure, and the executive branch shall re-elected the concessionaire in accordance with the provisions of this approach.

As a result of the expiration of the licence period, the licensee was re-elected and, under the same conditions, the owner of the original project was given priority to the right to operate.

Chapter V Legal responsibility

Article 44

The executive body should revoke the right to do so by deception, bribery and make public disclosure to society.

A legal person who has been removed from the right to operate or other economic organizations shall not be involved in the operation of the city's infrastructure within three years.

Article 42 (Convention of the law of the enforcement body)

In violation of this approach, the executive branch does not perform statutory responsibilities, intervene in the normal operation of the project operator, in favour of fraud, abuse of authority, and is redirected by its superior executive or supervisory authority, and administrative disposition of the responsible person directly responsible and other direct responsibilities is made in accordance with the law; constitutes a crime and is criminalized by law.

Annex VI

Article 46

Foreigners invest in concessional business projects should be accompanied by provisions relating to external investment management in the country and the city.

Article 47

The socialization of urban infrastructure involves the transfer of equity rights and should be granted the right to operate under the law prior to the transfer.

Article 48

The relevant municipal administrations and districts, and the people of the district, can develop specific management approaches based on this approach.

Article 49

This approach has been implemented effective 1 May 2011.