Contents of the Measures for the Administration of Franchising of Infrastructure and Public Utilities
Infrastructure and public utility franchises should adhere to openness, fairness and impartiality, protect the trust and interests of all parties, and follow the following principles:
(1) Give full play to the advantages of social capital financing, professionalism, technology and management to improve the quality and efficiency of public services
(2) Transform government functions and strengthen consultation and cooperation between government and social capital
(3) Protect the legitimate rights and interests of social capital and ensure the continuity and stability of franchise operations
(4) Balance business and public welfare, and safeguard public interests
Infrastructure and utility concessions can take the following forms:
(1) Within a certain period of time, the government authorizes concessionaires to invest in new construction, renovation, expansion, and operation of infrastructure and public utilities. When the period expires, they will be handed over to the government.
(2) Within a certain period of time, the government authorizes concessionaires to invest in new construction, renovation, expansion, ownership and operation of infrastructure and public utilities. When the period expires, the concessionaires will be handed over to the government.
(3) After the concessionaire invests in new construction or renovation and expansion of infrastructure and public utilities and transfers them to the government, the government will grant it the right to operate within a certain period of time.
(4) Other methods stipulated by the state
Elements of the Infrastructure and Utilities Concession Management Measures
(1) The rationality of the franchise project’s full life cycle costs, technical routes and engineering plans, possible financing methods, financing scale, capital costs, quality and efficiency of public services provided, construction and operation standards and regulatory requirements, etc.
(2) The degree of market development in relevant fields, the construction and operation capabilities of market entities and their willingness to participate
(3) Assessment of public willingness and ability to pay for user fee projects
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