Wuhan Municipal Utilities Franchising Management

Original Language Title: 武汉市市政公用事业特许经营管理办法

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(May 15, 2006, Wuhan municipal people's Government at the 39th Executive meeting on June 26, 2006, 170th release from the people's Government of Wuhan municipality as of August 1, 2006) first in order to advance the process of marketization of municipal public utilities, regulate municipal utilities franchising activities, protection of public interests and the legitimate rights and interests of the franchisees, promoting the development of municipal public utilities, according to the provisions of relevant State laws and regulations, combined with the city's actual, these measures are formulated.
    Article II the city water supply, gas supply, heating, drainage, sewage treatment, waste disposal, urban public passenger transportation and public information network and other municipal public utility franchise according to law, these measures shall apply.
    Municipal utilities franchising in these measures refers to municipal people's Government in accordance with the provisions of relevant laws and regulations, through market competition mechanism to select investors or operators of municipal public utilities, clear it in a certain period and within the scope of business of a municipal utility product or provide a service system.
    Article III implementation of municipal utilities franchising should be fair, just, open and public interest priority principle, rational distribution and efficient allocation of resources.
    Fourth of municipal construction, water supply, urban management, transport, information technology and other municipal utilities authorities (hereinafter referred to as the competent authority) according to the Municipal Government's authorization, is responsible for municipal utilities franchising management within their respective mandates and implementation.
    Financial and State-owned assets, audit and other relevant administrative departments according to their respective duties, responsible for municipal utilities franchising management work.
    Municipal construction administrative departments in charge of municipal utilities franchising-related coordination.
    Fifth article municipal utilities franchise can take following way: (a) will project of investment construction and right grant corporate or other organization, in franchise term expires Hou free transfer Government; (ii) will has built good of municipal public facilities of right grant corporate or other organization, in franchise term expires Hou free transfer Government; (three) in must term within, delegate corporate or other organization provides public products and service; (four) legal, and regulations, and regulations provides of other way.
    Franchise terms should be based on factors such as industry characteristics, size and mode of operation, it should not be longer than 30 years.
    Sixth franchise of municipal utilities projects (hereinafter referred to as the franchise project) shall, according to the city's urban construction and development needs and urban utility construction plans, concrete projects by the competent authority in accordance with their respective responsibilities, together with the development and reform authorities, submitted to the municipal people's Government.
    Franchise program is determined, the competent authority should develop implementation plan, submitted to the municipal people's Government for approval; implementation of major projects, the municipal people's Government should be decided collectively.
    Article seventh implementation plan shall include the following main elements: (a) the name, (ii) basic economic indicators of project; (c) the planning and site selection site observations and other planning requirements; (d) the franchise period; (e) the return on investment, prices and price calculation (f) operators are subject to the conditions and choices; (VII) safeguard measures.
    Article eighth franchise and scheme of the municipal people's Government for approval, the competent authority shall issue to the community to promote the franchising program announcements. Nineth article franchise right should through enrollment bid of way grant, participation franchise right bid who should has following conditions: (a) law registered of corporate or other organization; (ii) has corresponding of registered capital and equipment, and facilities; (three) has good of Bank funding letter, and financial status and the corresponding of claims debt capacity; (four) has corresponding of practitioners experience and good of performance; (five) has corresponding number of technology, and financial, and business, key post of personnel; (six) has practical of business programme; (seven) legal, and
    Other conditions stipulated by rules and regulations.
    Reimbursable grants franchise rights under law, its revenues shall be made in accordance with the regulations turn over finances.
    Tenth franchise bidding by the franchise's competent authority in accordance with the People's Republic of China bidding law and other laws, regulations, program organization, bid results should be open to the public, public notice period of not less than 20 days public notice expires without objection, the competent authority shall, without delay and the successful tenderer (hereinafter referred to as the franchisee) signed a franchising agreement.
    Trade authorities should franchises Organization experts to prove the contents of the text of the agreement and approval of the municipal people's Government, officially signed the franchise agreement. 11th article franchise agreement should including following content: (a) franchise content, and regional, and range, and way and term; (ii) products and service standard; (three) price, and charges of determine method, and standard and adjustment program; (four) facilities of ownership and disposal; (five) facilities maintenance and update transformation; (six) security management; (seven) performance guarantees; (eight) franchise right of terminated and change; (nine) default responsibility; (10) franchise right of recovered; (10
    A) dispute resolution (12) other matters that it should be agreed by the parties.
    12th concession operators should be in the context of franchise agreements in the franchise business, according to the franchise agreement, the Parties shall provide the products or services of municipal public utilities, public facilities maintenance, franchise, guarantee its functioning.
    Franchise owners to complete public welfare goals and assume control of Government-directed economic losses, Government should pay compensation.
    Period of 13th in the franchise agreement, if the agreement is absolutely necessary to change the agreement the two sides signed a supplementary agreement should be based on mutual consultation and submitted to the municipal people's Government for approval. Article 14th franchisees in the franchise proposes to terminate the agreement unilaterally within the validity period of the agreement, shall make application to the competent authority; the competent authority shall respond within 3 months from the date of receipt of the application.
    In front of the trade authorities agreed to the disarmament agreement, the franchisee must ensure normal operation and service. 15th franchise expires, the competent authority shall, in accordance with the regulations to reorganize the tender selected franchisees; in the same condition, the original franchisees will be given priority access to franchising.
    Reselect the franchisee's work should be completed before the expiry of the franchise period of six months.
    16th article in franchise during, industry competent sector should perform following duties: (a) assist related sector accounting and monitoring enterprise cost, proposed price adjustment views; (ii) organization about administrative competent sector developed products, and service quality evaluation standard; (three) supervision franchise who perform statutory obligations and franchise agreement provides of obligations; (four) on franchise who of business plans implementation situation, and products and service of quality and safety situation for supervision; (five) accepted on franchise who of complaints;
    (F) the annual franchise to municipal supervision and inspection reports; (VII) establish a franchise program assessment system taken over interim emergency response system, (VIII) laws, regulations, rules and other responsibilities stipulated in the franchise agreement. 17th article chartered operators should perform following responsibility: (a) Science reasonable to developed enterprise annual production, and supply plans; (ii) implementation national, and province, and City provides of municipal utilities products price and service charges standard; (three) perform franchise agreement, for social provides meet standard of products and service; (four) accept about administrative competent sector on products and service quality of supervision check; (five) on time will medium-and long-term development planning, and annual business plans, and annual report, and Board resolution, and
    Board members and main management personnel of change, reported industry competent sector record; (six) strengthening on production facilities, and equipment for run maintenance and update transformation, guarantee production facilities, and equipment good running; (seven) on franchise project construction, and operation, and maintenance process in the of about information for collection, and classified, and finishing and archive, and according to franchise agreement agreed of way, and program and term full transfer to industry competent sector; (eight) legal, and regulations, and regulations provides and franchise agreement agreed of other responsibility.
    18th to ensure public safety and safeguard the legitimate rights and interests of the franchise's case, Charter operators shall allow other operators to public utilities, according to the plans called for a connection to its business. Article 19th franchise within the time limit, the competent authority shall have the right to check on the franchise program assessment, without prejudice to franchisees in normal production and business activities.
    Charter breach of laws, regulations and rules and the franchising agreement shall be investigated for legal responsibility.
    Assessment should be carried out by the departments in charge of industry experts and evaluation cycle shall be not less than two years, annual assessments can be implemented under special circumstances.
    Departments in charge of industry and its staff in the supervision and administration of the franchise knows the franchise's trade secrets, technical secrets has a duty of confidentiality.
    Article 20th franchise period, force majeure, result in normal operation, the franchisee application and approved by the competent authority, early termination of their franchises.
    Article 21st trade authorities should establish emergency response plan for the temporary takeover of the franchise program.
    Franchise is changed or terminated, the competent departments shall take effective measures to ensure that municipal utilities product supply and service continuity and stability. Cancel the franchise and temporarily took over, the competent authority should be carried out in accordance with the provisions of relevant laws and regulations.

    22nd franchises was temporarily to take over or earlier termination, the competent authority shall promptly report to the municipal people's Government, the original Charter operator shall within the time stated in the competent authority will maintain the normal required for the operation of the franchise business assets and archives, transfer under normal running conditions specified by the competent authority.
    In front of the complete take over of units specified, licensed operators shall perform their duties in accordance with the requirements of the competent authority, to maintain normal operations.
    Article 23rd public municipal utilities franchising have the right to know, to advice and supervision.
    Trade authorities and concession operators should establish mechanisms for public participation, law, franchising business products or services and prices to the public, the provision of advisory services, safeguard public is able to monitor the franchise.
    Article 24th price departments shall, in the rational allocation of resources and ensure that under the premise of public interest, in accordance with national policies and regulations, industry average costs, taking into account the legitimate interests of franchising, in accordance with the procedures laid down in laws and regulations to determine or adjust the price of products and services of municipal public utilities, and monitoring.
    25th article franchise who has following case one of of, industry competent sector should ordered its deadline corrected, law should punishment of give punishment; late not modified of, terminated franchise agreement, canceled franchise right, and implementation temporary took over: (a) not according to franchise agreement of agreed provides public products or service, serious effect public interests of; (ii) unauthorized transfer, and rental, and pledge franchise right of; (three) unauthorized closed, and closed, serious effect public interests and public security of;
    (Four) unauthorized will by business of property for disposal or mortgage of; (five) for management poor, occurred major quality, and safety accident of; (six) for business management poor, reasons, caused financial status serious deterioration, endanger municipal utilities normal operation of; (seven) franchise who terminated or was revoked of; (eight) legal, and regulations, and regulations provides of other case. Franchisee by fraud, bribery or other improper means for obtaining the franchise, the competent authority shall revoke the franchises, termination of the franchise agreement.
    By the revocation of the franchise business, or other organization, not compete in 3 years the municipal utilities franchising.
    Article 26th industries has one of the following to the competent authority, by its superior or a supervisory agency ordered corrective action and managers directly responsible and other persons directly responsible shall be given administrative sanctions: (a) an applicant who does not meet the statutory requirements to grant franchises or beyond the legal authority to grant franchises; (b) franchise bids not complying with the statutory procedures.
    27th administrative organs and their staff in the supervision and administration of franchise in the abuse, negligence, malpractice, by their superiors or a supervisory agency ordered corrective action and managers directly responsible and other persons directly responsible shall be given administrative sanctions constitute a crime, referred to the judicial organs shall investigate the criminal liability. 28th article this way prior to the implementation of the existing municipal utilities projects examined by the competent authority and submitted to the municipal people's Government for approval can be granted directly to the original operator franchises, franchise agreements with the operators by the industry authority.
    The licence operator shall comply with the relevant provisions of the measures.
    29th district people's Government investment construction or implementation is responsible for the management of municipal public utilities franchises, in accordance with the measures of the regulations.
                                                                            30th article this way come into force on August 1, 2006.