Shanxi Province, Municipal Utilities Franchising Management

Original Language Title: 山西省市政公用事业特许经营管理办法

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(May 22, 2006 considered 71st meeting of the people's Government of Shanxi province on May 26, 2006, 188th promulgated by the people's Government of Shanxi province as of July 1, 2006) Chapter I General provisions article to regulate municipal utilities franchising activities and expand financing channels, protect the public interest and public safety, and ensure the quality of public goods and services, protect the legitimate rights and interests of the franchisees, according to relevant regulations of the State, combined with the facts of the province, these measures are formulated.
    Article in within the administrative area of the province engaged in municipal utilities franchising activities governed by this approach.
    Third municipal utilities franchising in these measures refers to urban people's Government municipal utilities franchising who determined through fair competition, in particular engaged in a utilities business activities within the scope and period.
    Fourth municipal utilities franchising should follow an open, just, fair and in the public interest and the principle of giving priority to public safety. Franchisees should provide sustainable, safe, high quality, efficient and affordable universal service.
    Franchise owners through legitimate business receive a reasonable return and bear the risks.
    Fifth province construction administrative departments in charge of the province's municipal utilities franchising guidance and supervision and management.
    City people's Government building, municipal utilities, sanitation or gardening authorities (hereinafter referred to as departments) responsible for the municipal utilities franchising management and implementation.
    Development and reform, supervision, finance, auditing, price of State-owned assets management, industry and commerce, and other relevant departments, undertake duties of supervision and administration in accordance with their respective responsibilities.
    Sixth implementation of municipal public utilities franchise's scope: (a) urban water supply, gas supply, heat supply, (ii) urban sewage and garbage treatment, (iii) urban public transport and (iv) urban roads, bridges and culverts, street lights, landscaping maintenance of municipal public facilities; (v) cleaning the cleaning of municipal solid waste removal; (f) the city shall determine other industry.
    And duration of the seventh municipal utilities franchising: (a) by way of public auction on investments, the new urban utility franchises, term of operation shall not exceed 30 years, handed over to the Government without compensation to the expiration, the franchise contract except as specifically agreed.
    (B) by way of transfer of assets made the existing municipal utilities franchising, business term not exceeding 30 years, expiry of pro bono returned to the Government.
    (C) by means of existing municipal utilities franchising rights, term of operation shall not exceed 8 years.
    Chapter II grant of franchise eighth authorities open tenders and other legal forms and procedures for franchises to qualified applicants, and was awarded the franchise enterprises signed a franchising contract.
    In the case where no other competition in the competition, you can take the form of direct grants franchises and franchise contracts with the entrusted business.
    The Nineth existing State-owned municipal enterprise, should be based on the complete enterprise restructuring, according to prescribed procedures to apply for the franchise. Tenth article used tender way grant franchise right of program: (a) competent sector proposed municipal utilities franchise project, by City Government approved, and reported Shang level competent sector record Hou, for social tender, announced tender conditions, public accept application; (ii) competent sector according to tender conditions on application franchise right of bid people qualification, and franchise programme for review, preferred select franchise right grant object; (three) will bid results and franchise programme in media for publicity,
    Subject to public supervision and (iv) publication expires, signed by the authorities and obtaining the franchise business franchise contracts.
    11th article application franchise right should has following conditions: (a) has enterprise corporate qualification; (ii) has corresponding of practitioners experience and good of performance; (three) has corresponding of funds and equipment, and facilities; (four) enterprise business, and technology management head and important post personnel has corresponding of practice industry qualification; (five) good of Bank funding letter and financial status and the corresponding of claims debt capacity; (six) has science reasonable of business programme; (seven) legal, and regulations and tender, and recruitment, and auction file provides of conditions.
    12th article franchise contract should contains Ming following content: (a) franchise project of name, and franchise authorized subject, and franchise who; (ii) franchise of way, and content, and regional, and range and effective term; (three) products and service quality standard; (four) price or charges standard and the adjustment program; (five) municipal public facilities of ownership and disposal; (six) municipal public facilities new, and maintenance and update transformation of costs, and responsibility subject and the property belonging;
    (Seven) municipal public facilities using fee of charged or relief; (eight) franchise who returns way, and margins, and profit into and the Government subsidies, and compensation way and amounts; (nine) franchise right of change and terminated; (ten) for public interests and public security need, for temporary took over and other control of way; (11) security management and burst event should measures and the responsibility; (12) default responsibility, and supervision mechanism and performance guarantees; (13) both agreed of other matters.
    Chapter III rights and obligations of the 13th municipal people's Governments shall comply with relevant obligations under the franchise contract.
    Authorities in accordance with their respective areas of responsibility in the performance of the franchise contract commitments.
    14th franchisee shall have the management right, and generate revenue through: (a) the costs for the provision of public goods and services, (ii) municipal people's Government in the franchise contract commitment other business interests and financial subsidies, (iii) laws and regulations in other ways.
    The 15th concession operators should guarantee the safe operation of municipal public facilities and equipment in good condition and in accordance with the relevant provisions or the franchise contract, periodic maintenance to ensure uninterrupted provision of public products and services as agreed upon, and facility operation promptly report to the competent authorities.
    16th article franchise who new, and maintenance, and update, and transformation municipal public facilities, should comply with following provides: (a) meet city planning; (ii) meet about technology standard and specification; (three) developed corresponding of implementation plans and Programme; (four) for emergency situation need repair Shi, should first implementation repair, and report competent sector; (five) new, and update, and transformation completed Hou, needed by competent sector acceptance qualified, party can input using. 17th new user connections, using the franchise of the city water supply, gas supply, heating, sewage treatment and other public facilities, equipment, shall be subject to approval of the city authorities, and connections, contract with the franchisee.
    Franchisee shall not be charged to user facilities, compensation cost for equipment investment.
    18th concession operators should relevant information on municipal public facilities to collect, sort, organize, and archive, after the expiration of a one-time transfer of authority.
    The 19th under any of the following circumstances, and municipal people's Governments shall give the franchisee a reasonable allowance, compensation: (a) losses due to prices or charges are not in place; (b) in the public interest and public safety needs, requisitioned the municipal utilities, (iii) the franchisee in accordance with government orders to bear social benefits such as free admission, free. 20th article franchise term within, Chartered operators should perform following obligations: (a) perform franchise contract, provides meet standard of municipal utilities products and service, and to social publicity products and service standard; (ii) accept competent sector on products and service quality of supervision check; according to public interests need and contract agreed, tie completed city government temporary took over and other control measures; (three) timely, and accurate, and real of to competent sector submitted annual business plans, and annual business situation report, and
    Financial report and relevant information on performance of the contract; (iv) in accordance with safety regulations, standards and norms, organizing production, and accept the supervision and inspection of the relevant departments (v), equipment maintenance and renovation of production facilities, guarantee good condition; (vi) exercise price administrative departments or adjust the price; (VII) accept social supervision.
    21st franchisees may not transfer, lease, franchise, shall not be disposed of in pledge of franchises.
    22nd franchise fees for enterprise products and services, developed by the Department in charge of price, and the hearing in accordance with the relevant provisions.
    Chapter fourth franchise change and termination article 23rd franchisee in accordance with change of company name, legal representative, shall report before the change to the competent authorities, and agreed by the competent authorities. 24th during the term of the contract, franchise changes, both parties shall enter into supplementary agreements.
    Due to the public interest and public safety needs to change the contract, should ensure that the legitimate interests of franchisees.
    25th article franchise who has following case one of of, competent sector reported by sibling City Government agreed Hou, can ahead of terminated franchise contract, recovered its franchise right, and implementation took over: (a) transfer, and rental franchise right or to pledge way disposal franchise right of; (ii) unauthorized will municipal public facilities and by business of property for mortgage, and rental, and transfer, and transfer of; (three) for transfer Enterprise equity or property and appeared not meet authorized qualification conditions of; (Four) up not to utilities products, and service of standard and requirements, effect public interests of; (five) for business management poor, caused major quality security accident, effect public interests of; (six) for business management reasons, financial status serious deterioration, endanger utilities, cannot continues to perform franchise contract of; (seven) not by city planning investment construction public facilities, by competent sector ordered deadline corrected and refused to corrected of; (eight) unauthorized closed, and closed,
    Failure to fulfil the obligation of the franchisee under the franchise contract and responsibility, impact on public interest and public safety; (IX) laws, regulations, rules and other conditions stipulated in the contract. 26th recover the franchise decision by authority written notice to the franchisee.
    Franchisees can within 30th from the date of receipt of the written notification, its written representations or require hearings. Franchisee may request a hearing, the competent authority shall organize the hearing.
    Franchisees to take back the franchise decision, may apply for administrative reconsideration or bring an administrative suit.
    27th franchisee may terminate the franchise contract shall be 6 months in advance to the competent authority an application, approval may terminate the franchise, and bear liability for breach.
    By mutual agreement, could not agree, and may not modify or rescind the contract shall terminate the provision of products and services.
    The 28th due to force majeure, result in normal operation, the franchisee application, approved by the competent authorities, can terminate the franchise contract.
    After 29th franchises be withdrawn or terminated, the original Charter operator shall, within the time provided by the competent, according to liquidate assets and related procedures for the transfer, the assets necessary to maintain the normal operation of the franchise business and archives, under normal operating conditions for the transfer of authority.
    After 30th franchises be withdrawn or terminated, the new franchise owners or the specified unit is completed before the takeover, Charter operators should continue to maintain the normal operation of production and services, and interim operating contracts with the authorities.
    31st 6 months before the expiry of the franchise, the competent authorities shall, in accordance with the franchise as provided herein granted, organizing recruitment to public bidding, auction or the franchise, new franchise owners.
    The original franchisees, on the premise of fair competition, through the established procedure, the priority for obtaining the franchise. Supervision and administration of the fifth chapter 32nd people's Governments of cities shall, according to the city construction and development needs, develop franchising scheme construction Administrative Department at a higher level for the record.
    Implementation programme should including following content: (a) project name; (ii) project basic economic technology index and the service standard; (three) location and other planning conditions; (four) franchise term; (five) net worth returns, and investment returns, and cost returns, and price and charges standard measuring and the adjustment; (six) Chartered operators should has of conditions and the select way; (seven) Government commitment of range; (eight) guarantees measures. 33rd article competent sector should perform following regulatory duties: (a) developed industry development policy, and planning, and construction plans and products, and service quality standard; (ii) established franchise regulatory, and detection and assessment system, supervision franchise who performance behavior, timely to social publicity on products and service quality of detection, and assessment results and rectification situation; (three) supervision chartered operators developed and perfect the security guarantees measures and security operation; (four) supervision chartered operators developed safety emergency plans,
    Established security warning and emergency rescue work mechanism; (five) accepted public on franchise who of complaints, and for survey processing; (six) on franchise who violations for investigation; (seven) to City Government submitted on franchise who of annual supervision check report; (eight) developed temporary took over emergency plans, and in emergency situation Xia, temporary took over franchise who of business project; (nine) to business run appeared exception of franchise enterprise presence municipal utilities regulatory member.
    Article 34th municipal public enterprises can be adjusted according to the characteristics established profit gold, for use in control of municipal utilities franchising profits.
    Part of the enterprise's net profits exceeded the prescribed standard, into profit adjusted gold does not meet criteria specified in part subsidized by the profits adjusted gold, and the gap filled by the city people's Government.
    Profit adjusted gold extraction, monitoring, the use of specific methods, developed by the city people's Government.
    35th people's Governments of cities shall establish public utilities Oversight Committee, represent the public to monitor the franchise.
    Representative of the Central African Government members of the Committee of experts and the general public shall not be less than two-thirds.
    Public oversight board through symposiums, questionnaire surveys to collect public views and make regulatory recommendations.
    Sixth chapter legal liability 36th franchisee has any of the following circumstances, the competent authority shall order correction within, and fined 5000 Yuan and 30,000 yuan fine, cause losses to the clients, in accordance with the relevant provisions of compensation.
    (A) not made franchise right, engaged in franchise activities of; (ii) beyond franchise contract range, engaged in franchise activities of; (three) up not to municipal utilities products, and service of standard, serious effect public interests of; (four) for business management poor, caused major quality security accident of; (five) not by city planning investment construction public facilities, by competent sector ordered deadline corrected and refused to corrected of; (six) unauthorized closed, and closed, effect to social public interests and public security of;
    (VII) failure to fulfil the obligation of the franchisee under the franchise contract and responsibility, affect the public interest. 37th article competent sector staff has following case one of, yet constitute crime of, by superior competent sector or monitored sector law give administrative sanctions: (a) abuse, and engages in, caused serious consequences of; (ii) not by provides or beyond terms grant franchise right of; (three) not perform provides program grant franchise right of; (four) not perform regulatory duties or regulatory poor, caused serious consequences of; (five) in franchise right grant and implementation regulatory process in the,
    Demanding or accepting other people's property, or other interests.
                                                                                      38th article of the rules of the seventh schedule as of July 1, 2006.