Advanced Search

Rules Of Shenzhen Municipal Utilities Franchising

Original Language Title: 深圳市公用事业特许经营办法

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.

(Act No. 124 of the People's Government Order No. 124 of 21 March 2003)

Chapter I General
Article 1 promotes the development of public utilities and develops this approach in order to enhance the efficiency and service quality of utilities, guarantee the legitimate rights and interests of the public and the concessionaires.
Article II of this approach refers to the exclusive authorization of the municipal government for the operation of a public utility at certain time and within the scope of a licence.
Article 3 Governments encourage social funds, foreign capitals to build public-use facilities, such as sole-source, joint ventures, cooperation, and private utilities.
Article IV Concessions should give priority to ensuring that public interests are not compromised. Concession operators should ensure that sustained, safe, quality, efficient, fair and affordable universal services are provided.
The licensor obtained a reasonable return and assumed the corresponding operational risk through the lawful operation.
Article 5 Governments and concessionaires should establish public participation mechanisms to encourage public scrutiny of utilities.
Article 6. The Public Service Regulatory Service (hereinafter referred to as the regulatory sector) is responsible for the supervision of the operation of public utility concessions, and other government departments perform oversight functions in accordance with their respective responsibilities.
Chapter II Concessions
Article 7. The authorized subject of the right to regulate the municipality or its mandate.
Article 8 Authorizes the subject to other means prescribed by tendering, recruitment or law, regulations, regulations and regulations, to grant a person eligible for application in a fair and impartial manner through the issuance of the Shenzhen municipality Concessionary Business Author (hereinafter referred to as a guide). Specific conditions are provided for in the solicitation documents, the recruitment of invitations.
Applicants apply for the granting of royalties to respond to such matters as the right to public-use facilities and their disposition, the transfer of authority and the associated responsibility of the utilities operated with other business activities.
Article 9. The granting of the right to do so by solicitation, in accordance with the procedure set out in the national solicitation tender law, is determined by the solicitation notice, the solicitation documents.
Article 10 refers to the recruitment of persons referred to in this approach, after the publication of public utilities to be authorized to operate, an invitation was extended to the applicant by the subject or its mandated intermediary to identify the candidates of the operator through careful investigation and interest negotiations, and to submit to the evaluation committee a priority negotiator for the negotiation of the authorized person.
Article 11. Authorization shall contain the following main matters:
(i) Authorized, authorized;
(ii) The content, region, duration of the right to be granted;
(iii) The rights and disposition of public-use facilities;
(iv) Recovering the right to work;
(v) The obligation and responsibility of the concessionaire.
The obligations and responsibilities of the licensor referred to in the previous paragraph include:
(i) Compliance with laws and regulations, regulations;
(ii) Standards and requirements for utilities services;
(iii) Maintenance and construction of public-use facilities;
(iv) To receive oversight by the regulatory authorities and temporary and other control measures in accordance with laws, regulations, regulations;
(v) Accept public scrutiny;
(vi) Implementing the price established or adjusted in accordance with the provisions of laws, regulations and regulations;
(vii) Other.
Article 12 Authorization is a statutory basis for the licensee to engage in a licence operation and the scope of the licence shall not exceed the authorization.
No authorization shall be granted for the operation of public utility concessions.
Article 13 Governments may, depending on the characteristics of utilities, pay for royalties.
Article 14. The licensee shall not dispose of the right to operate by transfer, rent and quality.
Article 15 terminates when the licence expires. The licensor shall apply for the extension of the right to a licence and shall submit a request for extension within the time prior to completion. The subject of the mandate was reviewed to be eligible for extension. However, the extension should not exceed twice.
The period referred to in the preceding paragraph shall be determined separately from the annex to this approach.
Article 16: The licensee has one of the following cases and authorizes the subject to reclaim the right to operate:
(i) Removal of the right to operate, including by transfer, rent, quality;
(ii) The absence of conditions of eligibility due to the transfer of enterprise unit rights;
(iii) Inadequate access to utilities products, standards and requirements, with serious implications for the public interest;
(iv) A major safety liability accident resulting from mismanagement of business, with serious implications for the public interest;
(v) The severe deterioration of the financial situation and the endangering of utilities due to the management of business;
(vi) Inadequate investment in urban planning and the construction of public-use facilities, the regulatory authorities are refusing to correct the deadlines;
(vii) Resistance and chewing;
(viii) In violation of commitments made when applying for a licence to operate;
(ix) Other cases provided for by law, regulations and regulations.
Article 17's decision to reclaim the right to operate shall be communicated by the author in writing to the concessionaire. The licensor may make written pleas or requests for hearing within 30 working days after the written notice has been received. The licensor requested that hearings be held and the subject should be organized.
The decision of the licensor to reclaim the right to do so may be applied by law for administrative review or administrative proceedings.
During the licence operation, the event of force majeure has resulted in a failure to operate properly, the application of the licensee and the authorization of the subject matter may terminate the licence in advance.
After the right to a licence has been recovered or terminated, the former licensor shall maintain the assets and archives necessary for the normal operation of the licence operation within the time specified by the authorized subject, within the time specified by the subject matter.
Article 20 provides reasonable compensation for the net value of the fixed assets constructed by the former licensor for the maintenance of the normal operation of the licence operation after the reclaim or termination of the licence.
The royalties have been recovered in accordance with article 16 of this scheme, and the former licensor compensates the Government for the costs of re-establishing the royalties and dealing with the expenses required.
Article 21, after the recovery or termination of the licence, the licensor shall, at the request of the authorized subject, perform its duties in good faith and maintain normal operating services.
Chapter III Public facilities
Article 2 Government investment-building public-provided facilities, which are owned by the Government, can be used by the Government to the licensee through leases.
Concession operators should build new utilities in accordance with urban planning. After the return or termination of the licence, the public facility is owned by its commitment. The Government is required to provide investors with reasonable compensation in accordance with this approach or in advance agreement.
Article 23 The licensor shall allow other operators to connect their public-use facilities in accordance with planning requirements. The fees are applied to price management.
Article 24 allows the licensor to consult the owner in advance with the owner and the owner in order to facilitate the construction and maintenance of public facilities.
Article 25 Maintenance of public-use facilities is subject to the relevant road and green management provisions, which should be subject to the overall arrangements of the municipal planning sector. In cases where an emergency needs to be renovated, the licensor may pre-empted, inform the relevant sectors and replicate the procedures.
Article 26 licensors are able to carry out regular inspections of the state and sexuality of public facilities and to report on the regulatory sector on the operation of the facility on time.
Article 27 provides for the collection, classification, collation and archiving of information such as photographs of various public-use facilities, the improvement of the information management system for public facilities and networking with the Government.
Article 28 Governments, for public interest, may be required to make public use facilities in accordance with the law, and the licensee shall cooperate and the Government shall give investors reasonable compensation.
Chapter IV Prices
Article 29 states that the municipal price sector is responsible for the development or adjustment of public utility prices.
Article 33 establishes the principle that the price of utilities should be followed by compensatory costs, taxation, reasonable benefits, savings, development and social resilience.
Article 31, Public utility prices comprise costs, taxes and profits.
Costs refer to the average cost of society, including the costs of manufacture and duration that should be taken into account.
The profits refer to the reasonable benefits of the concessionaire. Depending on the characteristics of the different industries, the net value of the asset is approved separately.
Article 32
(i) The purchase price of raw materials and fixed assets, which is approved by the Government in accordance with the prescribed price, is approved by the market price at the time of the purchase, which is approved at the average price of the market at the time of the purchase, is actually purchased less than the market average price and is approved at the actual purchase price.
(ii) The total amount of wage costs, sales costs and management costs is controlled by proportion of the total cost of the three above-mentioned costs in the same city or in the near-three years, taking into account the approved level of social average in the city.
(iii) Fixed assets for depreciation must be assets related to the provision of public utility products or services, except for the above-mentioned assets in all public utility facilities of the Government, and the fixed assets are not included in the depreciation scope for more than 9 months. Removal of assets must continue to invest in the use of more than three months. The period of asset depreciation is determined by the fiscal sector, the price sector, the regulatory sector and the concessionaire in accordance with reasonable principles.
The price sector should establish a fixed-term review price system, establish cost information databases and establish effective cost-binding mechanisms. Where necessary, the cost of developing or adapting prices should be audited by qualified audit organizations to ensure the authenticity and accuracy of price costs.
The price sector, in conjunction with the regulatory sector, will determine the approved modalities for the rate of industrial benefits, as set out in the annex to this approach. The level of income is determined by the Government by the price sector with the regulatory sector based on social average levels of profit, bank interest rates and price indices.
The price sector will conduct an annual evaluation of the level of income with the regulatory sector and adjust it if necessary.
Article XV Establishment or adjustment of public utility prices, by:
(i) A written application by a licensor, the Public Service Oversight Committee, consumer organizations, industry associations or regulatory services to the price authorities may also be made directly by the price sector or other relevant sectors under the relevant price law and by the price sector.
(ii) Upon receipt of written requests by the price sector, whether the request material is ready for a preliminary review, verification, non-requirement of the application, and that the applicant's deadline for completion should be requested. After a written application is considered eligible for hearing, the decision to organize hearings within 15 days of the date of receipt of the request and to coordinate the relevant preparatory work with the relevant authorities.
(iii) The price sector shall hold hearings within three months of the decision to organize hearings and, at least 10 years prior to the hearings, the solicitation and hearings shall be held at the time of the presence of more than two thirds of the hearings.
(iv) The price sector should fully take into account the views of the hearings when the price programme would be developed with the regulatory sector, which should be followed by price-setting authority and coverage. A summary of the hearings, hearings and related materials should be submitted simultaneously.
(v) After the approval of the price programme, the price sector was made public, operators, public announcements on the Government website and other media and organization of implementation.
Article 36, in order to ensure relative stability in the price of utilities, may establish a price regulation reserve based on the characteristics of different utilities, for example, the regulation of utilities prices and profits. The specific approach provides otherwise.
Article 37 licensors should implement price regulation and price standards established by Governments.
Chapter V Regulatory
Article 338 supervises the concessionaire and performs the following duties:
(i) The solicitation and recruitment of specific organizations responsible for the granting of royalties;
(ii) Developing criteria for quality evaluation of products, services;
(iii) Supervision of the statutory obligations of the concessionaire;
(iv) To receive complaints from the public about the concessionaire;
(v) Character offences;
(vi) To make observations and recommendations on the five-year business plan and annual operating plans of the concessionaire and to monitor implementation;
(vii) Monitoring the quality of products and services provided by the licensee;
(viii) To assist the price sector in developing and adapting prices, accounting and monitoring costs and costs;
(ix) Review the annual report of the concessionaire;
(x) To submit annual inspection reports to the municipal authorities for the concessionaire;
(xi) The temporary takeover of utilities in emergency situations;
(xii) Other responsibilities under laws, regulations and regulations.
The licensor shall determine the duration of the management sector reserve or review in accordance with the annexes or other agreements of this scheme, for five years and annual operating plans, annual reports, changes in the Board and the main members of the operation.
Article 39 governs the day-to-day regulation of the licensee by the regulatory branch.
(i) The quality of products or services is in compliance with the requirements;
(ii) Whether the satisfaction of services provided by industry associations is met;
(iii) The annual and five-year course of operation of the licensor, whether the investment plan is justified and implemented;
(iv) Whether business and financial circumstances are good;
(v) Whether commitments are fulfilled;
(vi) Whether price provisions are implemented;
(vii) Changes in the Board and the main members of the business branch, and whether the Board's resolutions are required;
(viii) Other matters under laws, regulations and regulations.
Article 40 establishes the Public Service Monitoring Committee, which collects the views of the public, the licensor and makes recommendations such as legislation, regulation and supervision of the public on behalf of the public of the operation of public utilities.
Chapter VI Legal responsibility
Article 40 licensors are in breach of article 23, article 26 and article 27 of the scheme, which is being modified by the regulatory authority, with a fine of more than 50 million dollars.
In violation of article 12, article 14, article 19, article 21, article 21 and article 22, paragraph 2, of the scheme, the licensor was responsibly and fined by over 500,000 yen.
The licensor violates the provisions of article 37 of this approach, which are punishable by law by the price authorities.
Article 42 stipulates that the licensor decides not to impose an administrative review or administrative proceedings under the law.
Article 433 Abuse of authority, provocative fraud, negligence, bribes, etc., by the supervisory services, is subject to administrative disposition by law, which constitutes an offence and is criminalized by law.
Chapter VII
Article 44 enterprises or other organizations that have achieved the right to operate of a public utility, which authorizes the subject to direct authorization to the enterprise or other organizations. However, commitments under article 8, paragraph 2, of this approach cannot be exempted.
Article 42 The annex may be issued in conjunction with this approach or may be issued separately.
The regulatory sector may establish specific management measures or other matters in accordance with this approach, the annex to this approach.
Article 46 This approach was implemented effective 1 May 2003.