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Beijing's Urban Infrastructure Franchising Approach

Original Language Title: 北京市城市基础设施特许经营办法

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(Prelease No. 134 of 28 August 2003 of the Beijing People's Government)

Article 1, in order to advance the process of operation of urban infrastructure in this city, expand financing channels, accelerate urban infrastructure construction, provide quality public goods and services, maintain the legitimate rights and interests of investors, concessionaires and consumers.
Article 2
(i) Water supply, heating, drainage;
(ii) wastewater and solid waste disposal;
(iii) Feed roads, ground iron, urban railways and other cities;
(iv) Other urban infrastructure.
Article 3
(i) Within a certain period of time, the project will be granted to the concessionaire to invest in the construction, operation and the transfer of the project to the extent that the project is not reimbursable;
(ii) The transfer of urban infrastructure to license operators within a certain period of time, and the transfer of unliquidated obligations;
(iii) To entrust the public service to the concessionaire within a certain period of time;
(iv) Other modalities agreed by the Government of the city.
Article IV. Enterprises and other organizations outside the People's Republic of China may participate equally in competition in accordance with this approach and obtain concessions for the city's urban infrastructure.
The granting of concessions should be guided by the principles of openness, justice and equity.
Article 5. Urban infrastructure projects that are licensed (hereinafter referred to as concession projects) are determined in accordance with the development needs of the city and the planning of urban infrastructure.
Specific projects are submitted by the urban development reform sector with the urban infrastructure industry authorities and other relevant departments, and are requested to be approved by the Government of the city.
Following the establishment of the concession project, the urban infrastructure industry authorities should develop implementation programmes, with the participation of the municipal development reform sector in the organization of financial, price, planning, land tenure management, construction and environmental protection authorities, in accordance with their respective responsibilities, to review the implementation programme.
Implementation programmes should include the following:
(i) Project name;
(ii) Project basic economic technical indicators;
(iii) Selection sites and other planning conditions;
(iv) Period of licence;
(v) Investment returns, prices and their calculations;
(vi) The conditions and options that the operator should have;
(vii) Other Government commitments;
(viii) Safeguards;
(ix) royalties and their relief;
(x) Unit responsible for implementation.
Article 7. The concessionaire may obtain a return through:
(i) Costs for the provision of public goods and services;
(ii) Other development-related benefits related to urban infrastructure;
(iii) The corresponding subsidies granted by the Government;
(iv) Other modalities agreed by the Government of the city.
Article 8. The Government is committed to addressing land-use, related infrastructure provision, prevention of unnecessary duplication of competition projects, the necessary subsidies, but not commercial risk sharing, fixed investment returns and other matters prohibited by law, regulations and regulations.
Article 9 provides for royalties. The criteria for royalties are determined by the Government of the Municipalities according to the industrial characteristics of the concession projects, which may be exempted from royalties for micro- or financial subsidies.
Article 10 Concession projects and their implementation programmes, with the approval of the Government of the city, are issued by industry authorities in the urban development reform sector or in urban infrastructure to advise on the project.
Article 11. Concession projects are specifically implemented by the urban infrastructure industry authorities or by the district, the local government or other sectors identified by the Government of the city (hereinafter referred to as implementation units).
The functions of the implementing units:
(i) The preparation of solicitation documents and the organization of tenders;
(ii) Negotiate and enter into a licence agreement with the markers;
(iii) In accordance with the licence agreement, the relevant work to assist the project;
(iv) Oversight of the implementation of the licence agreement;
(v) To receive the urban infrastructure transferred at the end of the licence period.
Article 12. The concessionaire shall be determined by means of tendering. The existing urban infrastructure is proposed to operate under Article 3, paragraph 2, of this scheme, with the approval of the Government of the city, to grant concessions in a manner that is directly commissioned and to enter into a licence agreement with the concessionaires by the urban infrastructure industry authorities.
Article 13 Products, service prices are determined and adjusted to be implemented in accordance with price law.
After the determination of the licensor, the implementing units shall enter into a licence agreement with the concessionaire. Concession agreements include the following:
(i) Project name, content;
(ii) Concessions, duration;
(iii) Number, quality and standards of products or services;
(iv) The duration and manner of financing;
(v) The fees or subsidies and their adjustment mechanisms;
(vi) Government commitments and guarantees;
(vii) The rights and obligations of the concessionaire;
(viii) Risk sharing during the concession period;
(ix) Modalities, procedures for the transfer of royalties to projects;
(x) Liability for default;
(xi) Dispute settlement.
After the signing of a licence agreement, the concessionaire shall register a project company within the specified period responsible for the implementation of the licence project.
Article 16 provides the appropriate services for the implementation of units and project companies, in accordance with their respective responsibilities, in accordance with their respective responsibilities.
During the period of licence, the project company should provide public goods and services in accordance with the agreement of the licence agreement, maintain the urban infrastructure for the implementation of the licence operation and guarantee the good functioning of the facility.
During the period of the licence, the relevant administrative authorities have the right to inspect, assess, audit the licence project, and the act of the licensor in violation of the laws, regulations and regulations and the licence agreement shall be corrected and punished in accordance with the law until the concession is recovered in accordance with the law.
During the licence period, as a result of the expected interest of the project company, the project company could make a request for compensation to the urban infrastructure industry authorities, and the urban infrastructure industry authorities should verify within six months of receipt of the project company's request for compensation, with the approval of the municipal people.
Article 20
Article 21 project companies have one of the following cases, and the implementing units have the right to terminate the licence agreement:
(i) Failure to provide public products or services in accordance with the agreement of the licence agreement, which is serious;
(ii) Transfer of concessions;
(iii) The unauthorized suspension, the impact of the chewing on public interest and public safety;
(iv) The licence agreement cannot be implemented for reasons such as the insolvency of the project company.
In addition to the circumstances set out in article 21 of this scheme, the concession shall not be recovered and the urban infrastructure for the granting of concessions shall not be invoked; however, it is true that, in the case of public interest, the Government of the city approves the recovery of the concession or the use of the urban infrastructure for the operation of the licence, it shall be compensated accordingly.
Article 23 expires, and the project company may apply for the extension of the licence period. Applications for extension periods should be submitted to the urban infrastructure industry authorities by one year of the expiration of the licence, which may be extended after the assessment of consent and approval by the urban infrastructure industry authorities.
Article 24 was recovered, and the project company should transfer urban infrastructure in accordance with the terms agreed upon by the licence agreement or by the Government of the city, the implementing unit should organize an assessment of the facilities and related assets and compensate the need for compensation and be compensated in accordance with the agreement of the licence agreement.
Article 25, in violation of this approach by the administrative authorities, does not perform statutory responsibilities, interfere with the normal operation of the project company, activist fraud, abuse of authority, and the project company has the right to report and appeal or to apply administrative review or administrative proceedings in accordance with the law.
Article 26