Notice on printing and distributing the operation guide for the cooperation mode of government and social capital (for Trial Implementation)
Caijin [2014] No.113
The finance departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning, and the Finance Bureau of Xinjiang Production and Construction Corps:
According to the Notice of the Ministry of Finance on Issues Related to Popularizing and Applying the Cooperation Mode of Government and Social Capital (No.76 [2014] of the Ministry of Finance), in order to ensure the implementation quality of cooperation projects between government and social capital, and standardize the operation procedures of each link of project identification, preparation, procurement, implementation and handover, the Operation Guide for Cooperation Mode of Government and Social Capital (for Trial Implementation) is hereby issued, please follow it.
Attachment: Operation Guide for Cooperation Mode of Government and Social Capital (Trial)
the Ministry of Finance
November 29th, 2014
Attachment:
Guide to the operation of cooperation mode between government and social capital
(Trial)
Chapter I General Provisions
the first In order to popularize and apply the Public-Private Partnership (PPP) scientifically and normatively, According to the Budget Law of the People’s Republic of China, the People’s Republic of China (PRC) Government Procurement Law, the People’s Republic of China (PRC) Contract Law, the State Council’s Opinions on Strengthening the Management of Local Government Debt (Guo Fa [2014] No.43), the State Council’s Decision on Deepening the Reform of Budget Management System (Guo Fa [2014] No.45) and the Notice of the Ministry of Finance on Promoting and Applying the Cooperation Mode of Government and Social Capital (Cai
the second The term "social capital" as mentioned in this Guide refers to domestic and foreign enterprise legal persons who have established a modern enterprise system, but does not include financing platform companies owned by the government at the same level and other holding state-owned enterprises.
Article This guide is applicable to regulate the activities of the government, social capital and other participants in the identification, preparation, procurement, implementation and handover of cooperation projects between the government and social capital.
Article 4 The financial department should adhere to the basic principles of the socialist market economy, strengthen coordination with relevant government departments in the spirit of system innovation and cooperative contract, actively play the role of third-party professional institutions, and comprehensively coordinate the cooperative management of government and social capital.
The financial departments of all provinces, autonomous regions, municipalities directly under the Central Government, cities under separate state planning and Xinjiang Production and Construction Corps should actively set up government and social capital cooperation centers or designate specialized agencies to perform the duties of planning guidance, financing support, identification and evaluation, consulting services, publicity and training, performance evaluation, information statistics, expert database and project library construction.
Article 5 All participants should follow the principles of fairness, justice, openness, honesty and credibility, and implement government and social capital cooperation projects in a legal, standardized and efficient manner.
Chapter II Project Identification
Article 6 Infrastructure and public service projects with large investment scale, long-term stable demand, flexible price adjustment mechanism and high degree of marketization are suitable for government and social capital cooperation mode.
Government and social capital cooperation projects are initiated by the government or social capital, mainly by the government.
(1) initiated by the government.
The financial department (government and social capital cooperation center) should be responsible for collecting potential government and social capital cooperation projects from the competent departments of transportation, housing construction, environmental protection, energy, education, medical care, physical fitness and cultural facilities. The competent department of industry can select potential projects from the new construction, reconstruction projects or stock public assets in the national economic and social development planning and industry special planning.
(2) Initiation of social capital.
Social capital should recommend potential government and social capital cooperation projects to the financial department (government and social capital cooperation center) in the form of project proposal.
Article 7 The financial department (government and social capital cooperation center) shall, jointly with the industry authorities, evaluate and screen potential government and social capital cooperation projects and determine alternative projects. The financial department (government and social capital cooperation center) shall formulate the annual and medium-term development plan of the project according to the screening results.
For the projects included in the annual development plan, the project sponsor shall submit relevant materials according to the requirements of the financial department (government and social capital cooperation center). The feasibility study report, project output description and preliminary implementation plan shall be submitted for new construction and reconstruction projects; The stock project shall submit the historical data, project output description and preliminary implementation plan of the stock public assets.
Article 8 The financial department (government and social capital cooperation center) will carry out value-for-money evaluation from both qualitative and quantitative aspects in conjunction with the competent departments of the industry. Quantitative evaluation work is carried out by all localities according to the actual situation.
Qualitative evaluation focuses on whether the cooperation mode of government and social capital can increase supply, optimize risk distribution, improve operational efficiency, promote innovation and fair competition compared with the traditional government procurement mode.
Quantitative evaluation mainly compares the present value of government expenditure cost with the comparative value of public sector in the whole life cycle of government and social capital cooperation projects, calculates the value for money of the projects, and judges whether the cooperation mode of government and social capital reduces the whole life cycle cost of the projects.
Article 9 In order to ensure the long-term financial sustainability, the financial department should demonstrate the financial affordability of some projects paid or subsidized by the government according to the financial expenditure, government debt and other factors in the whole life cycle of the project, and the annual financial expenditure such as government payment or government subsidy should not exceed a certain proportion of the current fiscal revenue.
Projects that pass the value-for-money evaluation and financial affordability demonstration can be prepared.
Chapter III Project Preparation
Article 10 Local people’s governments at or above the county level may establish a special coordination mechanism, which is mainly responsible for project evaluation, organization and coordination, inspection and supervision, etc., so as to simplify the examination and approval process and improve work efficiency. The government or its designated relevant functional departments or institutions can be used as project implementation agencies, responsible for project preparation, procurement, supervision and handover.
Article 11 The project implementation agency shall organize the preparation of the project implementation plan, and introduce the following contents in turn:
(1) Overview of the project.
The general situation of the project mainly includes the basic situation, economic and technical indicators and the equity of the project company.
The basic situation mainly defines the contents of public products and services provided by the project, the necessity and feasibility of the project operating in the mode of cooperation between government and social capital, and the objectives and significance of the project operation.
Economic and technical indicators mainly define the project location, area, construction content or asset scope, investment scale or asset value, main output description and source of funds.
The equity of the project company mainly clarifies whether to set up the project company and the company’s equity structure.
(2) Basic framework of risk allocation.
According to the principles of risk allocation optimization, risk-return equivalence and risk control, the project risk is reasonably distributed between the government and social capital by comprehensively considering factors such as government risk management ability, project return mechanism and market risk management ability.
In principle, commercial risks such as project design, construction, finance, operation and maintenance are borne by social capital, risks such as laws, policies and minimum demand are borne by the government, and risks such as force majeure are reasonably shared by the government and social capital.
(3) Project operation mode.
Project operation modes mainly include entrusted operation, contract management, construction-operation-handover, construction-ownership-operation, transfer-operation-handover and reconstruction-operation-handover.
The choice of specific operation mode is mainly determined by the charging pricing mechanism, the level of project investment income, the basic framework of risk allocation, financing demand, reconstruction and expansion demand and expiration disposal.
(4) the transaction structure.
The transaction structure mainly includes the project investment and financing structure, return mechanism and related supporting arrangements.
The investment and financing structure of the project mainly explains the source, nature and purpose of the capital expenditure of the project, the formation and transfer of the project assets, etc.
The project return mechanism mainly explains the source of funds for social capital to obtain investment return, including payment methods such as user payment, feasibility gap subsidy and government payment.
Relevant supporting arrangements mainly explain the supporting facilities such as land, water, electricity, gas and roads provided by relevant institutions outside the project and the upstream and downstream services required by the project.
(5) Contract system.
The contract system mainly includes project contract, shareholder contract, financing contract, project contract, operation service contract, raw material supply contract, product purchase contract and insurance contract. The project contract is the core legal document.
The project boundary conditions are the core content of the project contract, mainly including the boundaries of rights and obligations, transaction conditions, performance guarantee and adjustment and convergence.
The boundary of rights and obligations mainly defines the ownership of project assets, the public responsibility assumed by social capital, the way of government payment and the result of risk distribution.
The boundary of trading conditions mainly defines the project contract term, project return mechanism, charging pricing adjustment mechanism and output description.
The boundary of performance guarantee mainly defines the compulsory insurance scheme and the performance guarantee system consisting of investment competition guarantee, construction performance guarantee, operation and maintenance guarantee and handover maintenance guarantee.
The adjustment of the convergence boundary mainly defines the response measures such as emergency handling, temporary takeover and early termination, contract change, contract extension, and the demand for new expansion and expansion of the project.
(6) Regulatory framework.
The supervision structure mainly includes authorization relationship and supervision mode. The authorization relationship mainly refers to the government’s authorization to the project implementation agency and the government’s authorization to social capital directly or through the project implementation agency; Supervision methods mainly include performance management, administrative supervision and public supervision.
(7) Selection of procurement methods.
Project procurement shall be carried out in accordance with the People’s Republic of China (PRC) Municipal Government Procurement Law and relevant rules and regulations, and the procurement methods include public bidding, competitive negotiation, invited bidding, competitive negotiation and single-source procurement. Project implementation agencies should choose appropriate procurement methods according to the characteristics of project procurement needs.
Open bidding is mainly applicable to projects with clear and complete core boundary conditions and technical and economic parameters, which are in line with national laws and regulations and government procurement policies and will not be changed in procurement.
Article 12 The financial department (government and social capital cooperation center) shall verify the value for money and financial affordability of the project implementation plan, and if it passes the verification, the project implementation agency shall report it to the government for review; If it fails to pass the verification, it can be re-verified after the implementation plan is adjusted; If it still fails to pass the re-verification, the cooperation mode of government and social capital will no longer be adopted.
Chapter IV Project Procurement
Article 13 Project implementation agencies should prepare pre-qualification documents according to the needs of the project, issue a pre-qualification announcement, invite social capital and financial institutions cooperating with them to participate in the pre-qualification, verify whether the project can obtain social capital response and achieve full competition, and submit the pre-qualification review report to the financial department (government and social capital cooperation center) for the record.
If there are more than three social capitals in the project that have passed the prequalification, the project implementation agency may continue to carry out the preparation of procurement documents; If there are less than three social capitals that have passed the prequalification, the project implementation agency shall reorganize the prequalification after the implementation plan is adjusted; If the social capital of the project is still not enough after re-prequalification, the procurement method selected by the implementation plan can be adjusted according to law.
Article 14 The pre-qualification announcement shall be published in the media designated by the financial department of the people’s government at or above the provincial level. If the pre-qualified social capital changes its qualification before signing the project contract, it shall promptly notify the project implementation agency.
The prequalification announcement shall include the authorized subject of the project, the project implementing agency and the project name, the procurement demand, the qualification requirements for social capital, whether the consortium is allowed to participate in procurement activities, the number and determination method of qualified social capital to be determined, and the time and place for social capital to submit the prequalification application documents. The time for submitting pre-qualification application documents shall not be less than 15 working days from the date of announcement.
Article 15 Project procurement documents shall include procurement invitation, instructions to competitors (including sealing, signing and stamping requirements, etc.), qualification, credit standing and performance certification documents that competitors should provide, procurement method, government authorization to project implementation agencies, approval of implementation plan and project-related approval documents, procurement procedures, requirements for preparation of response documents, deadline for submitting response documents, opening time and place, amount and form of compulsory guarantee deposit payment, evaluation method, evaluation standard and government procurement policy.
In case of competitive negotiation or competitive negotiation procurement, the project procurement documents shall specify the contents that may be substantially changed by the evaluation team according to the negotiation with social capital, including the technical and service requirements in the procurement requirements and the terms of the draft contract, in addition to the contents specified in the preceding paragraph.
Article 16 The review team consists of more than 5 representatives of project implementation agencies and review experts, of which the number of review experts shall not be less than 2/3 of the total number of review team members. Evaluation experts can be selected by the project implementation agency, but the evaluation experts should include at least one financial expert and one legal expert. The representative of the project implementation agency shall not participate in the project review as an expert.
Article 17 If the project adopts public bidding, invitation bidding, competitive negotiation and single-source procurement, it shall be implemented in accordance with government procurement laws, regulations and relevant regulations.
If the project is purchased by competitive negotiation, it shall be conducted in accordance with the following basic procedures:
(a) procurement announcement and registration.
The announcement of competitive consultation shall be published in the media designated by the financial department of the people’s government at or above the provincial level. The announcement of competitive consultation shall include the project implementing agency and project name, project structure and core boundary conditions, whether social capital that has not been prequalified is allowed to participate in procurement activities, as well as the review principle, project output description, requirements for response documents provided by social capital, time, place and method of obtaining procurement documents, price of procurement documents, deadline for submitting response documents, opening time and place. The time for submitting response documents shall not be less than 10 days from the date of announcement.
(two) qualification examination and procurement documents for sale.
If the qualification has been pre-qualified, the review team will no longer review the social capital qualification at the review stage. If the post-qualification review is allowed, the review team will review the qualifications of social capital in the review of response documents. The project implementation agency may, depending on the specific circumstances of the project, organize the inspection and verification of the qualifications of qualified social capital.
The selling price of procurement documents shall be determined in accordance with the principle of making up the printing cost of procurement documents, and shall not be for profit, and shall not be based on the purchase amount of the project. The sale period of procurement documents shall not be less than 5 working days from the date of commencement.
(3) Clarification or modification of procurement documents.
Before the deadline for submitting the first response document, the project implementation agency may make necessary clarifications or modifications to the issued procurement documents, and the contents of clarification or modification shall be regarded as an integral part of the procurement documents. If the clarification or modification may affect the preparation of the response document, the project implementation agency shall notify all social capital that have obtained the procurement document in writing at least 5 days before the deadline for submitting the first response document; Less than 5 days, the project implementation agency shall postpone the deadline for submission of response documents.
(4) Response document review.
The project implementation agency shall organize the receipt and opening of response documents in accordance with the provisions of the procurement documents.
The review team will review the response documents in two stages:
The first stage: determine the final purchase demand plan. The review team can negotiate with social capital for several rounds. During the negotiation, the technical and service requirements of the procurement documents and the terms of the draft contract can be substantially revised, but the non-negotiable core conditions stipulated in the procurement documents can not be revised. The content of substantive changes must be confirmed by the project implementation agency and notified to all social capital participating in the negotiation. The specific procedures shall be implemented in accordance with the Measures for the Administration of Non-tendering Methods of Government Procurement and relevant regulations.
The second stage: comprehensive score. After the final procurement demand plan is determined, the review team will comprehensively score the final response documents submitted by social capital, prepare the review report and submit the ranking list of candidate social capital to the project implementation agency. The specific procedures shall be implemented in accordance with the Measures for the Administration of Bidding for Government Procurement of Goods and Services and relevant regulations.
Article 18 The project implementing agency shall, in the pre-qualification announcement, procurement announcement, procurement documents and procurement contracts, specify the preferential measures and scope for domestic social capital, the requirements for foreign social capital to purchase goods and services produced in China and other relevant government procurement policies, as well as the mandatory guarantee requirements for social capital to participate in procurement activities and performance guarantee. Social capital should pay the deposit in non-cash forms such as checks, bills of exchange, promissory notes or letters of guarantee issued by financial institutions and guarantee institutions. The amount of the deposit for participating in procurement activities shall not exceed 2% of the project budget. The amount of performance bond shall not exceed 10% of the total initial investment or asset evaluation value of government and social capital cooperation projects. For service cooperation projects with no fixed assets investment or small investment, the amount of performance bond shall not exceed the average service income of 6 months.
Article 19 The project implementation agency shall organize social capital to conduct on-site inspection or hold a question-and-answer meeting before purchasing, but it shall not organize on-site inspection and question-and-answer meeting with only one social capital alone or separately.
Article 20 The project implementation agency shall set up a special negotiation working group to confirm the procurement results. According to the ranking of the candidate social capitals, the candidate social capitals and the financial institutions that cooperate with them shall negotiate the confirmation of the variable details in the contract before signing, and the winner shall be the first to reach an agreement. Confirm that the negotiation shall not involve the non-negotiable core clauses in the contract, and shall not renegotiate with the social capital ranked first but whose negotiation has been terminated.
Article 21 After the confirmation negotiation is completed, the project implementation agency shall sign a confirmation negotiation memorandum with the selected social capital, and publicize the procurement results and the contract text drawn up according to the procurement documents, response documents, addendum documents and confirmation negotiation memorandum. The publicity period shall not be less than 5 working days. The contract text should take the important commitments and technical documents in the successful social capital response document as annexes. The contents involving state secrets and commercial secrets in the contract text may not be publicized.
After the expiration of the publicity period, the project contract without objection shall be signed by the project implementation agency and the selected social capital after the approval of the government.
If it is necessary to set up a special project company for the project, after the establishment of the project company, the project company and the project implementation agency will re-sign the project contract or sign a supplementary contract to inherit the project contract.
The project implementation agency shall, within 2 working days from the date of signing the project contract, announce the project contract in the media designated by the financial department of the people’s government at or above the provincial level, except for the contents involving state secrets and commercial secrets in the contract.
Article 22 The financial departments of the people’s governments at all levels shall strengthen the supervision and inspection of the procurement activities of PPP projects, and deal with the illegal acts in the procurement activities in a timely manner.
Chapter V Project Implementation
Article 23 Social capital can set up project companies according to law. The government may designate relevant institutions to participate in the project company according to law. Project implementation agencies and financial departments (government and social capital cooperation center) should supervise social capital to set up the project company in full and on time in accordance with the procurement documents and project contracts.
Article 24 Project financing is the responsibility of social capital or project company. Social capital or project companies should promptly carry out financing scheme design, institutional contact, contract signing and financing delivery. Financial departments (government and social capital cooperation center) and project implementation agencies should do a good job in supervision and management to prevent corporate debts from being transferred to the government.
If the social capital or the project company fails to complete the financing as agreed in the project contract, the government may withdraw the performance bond until the project contract is terminated; In case of systemic financial risks or force majeure, the government, social capital or the project company may revise the relevant financing clauses in the contract through consultation according to the project contract.
When the project has major operational or financial risks, which threaten or infringe the interests of creditors, creditors can request social capital or project company to improve management according to the direct intervention agreement or terms signed with the government, social capital or project company. Within the time limit stipulated in the direct intervention agreement or terms, if the major risk has been lifted, the creditor shall stop intervening.
Article 25 The government payment obligations involved in the project contract shall be considered by the financial department in combination with the medium and long-term financial planning, incorporated into the government budget at the same level, and implemented in accordance with the relevant provisions of budget management. The financial department (government and social capital cooperation center) and the project implementation agency shall establish a government payment ledger for government and social capital cooperation projects, and strictly control the government financial risks. After the establishment of the government’s comprehensive financial reporting system, the government’s payment obligations in the cooperation projects between the government and social capital should be included in the government’s comprehensive financial reporting.
Article 26 The project implementation agency shall, according to the project contract, supervise the social capital or the project company to fulfill its contractual obligations, regularly monitor the project output performance indicators, prepare quarterly and annual reports, and report them to the financial department (government and social capital cooperation center) for the record.
If the government has the obligation to pay, the project implementing agency shall, according to the output description agreed in the project contract and actual performance, directly or notify the financial department to pay the social capital or the project company in full and on time. If an excess income sharing mechanism is set up, social capital or the project company shall pay the excess income to the government in full and on time according to the project contract.
If the actual performance of the project is better than the agreed standard, the project implementing agency shall implement the incentive clauses agreed in the project contract, which can be used as the basis for whether the contract can be extended at the expiration of the project; If it fails to meet the agreed standards, the project implementation agency shall implement the punishment clauses or relief measures agreed in the project contract.
Article 27 If social capital or the project company violates the project contract, threatening the sustained, stable and safe supply of public goods and services, or endangering national security and major public interests, the government has the right to temporarily take over the project until the early termination procedure of the project is started.
The government may designate qualified institutions to implement temporary takeover. All expenses arising from the temporary takeover of the project will be borne by the defaulting party alone or shared by the responsible parties according to the project contract. Social capital or the temporary takeover expenses that the project company should bear can be deducted from its due termination compensation.
Article 28 In the process of project contract execution and management, project implementing agencies should focus on contract revision, liability for breach of contract and dispute resolution.
(1) Revision of the contract.
According to the conditions and procedures agreed in the project contract, the project implementing agency and social capital or the project company can apply for revising the project contract according to the changes in the social and economic environment, the demand and structure of public goods and services, and implement it after being examined and approved by the government.
(2) Liability for breach of contract.
If the project implementing agency, social capital or project company fails to fulfill the obligations stipulated in the project contract, they shall bear the corresponding liabilities for breach of contract, including stopping the infringement, eliminating the impact, paying liquidated damages, compensating the losses and dissolving the project contract.
(3) Dispute settlement.
In the process of project implementation, according to the project contract, the project implementation agency, social capital or project company may apply for arbitration or bring a civil lawsuit in accordance with the law on matters that are controversial and cannot be reached through consultation.
Article 29 The project implementation agency shall conduct a mid-term evaluation of the project every 3-5 years, focusing on the analysis of the project operation status and the compliance, adaptability and rationality of the project contract; Timely assess the risks of problems found, formulate countermeasures, and report to the financial department (government and social capital cooperation center) for the record.
Article 30 Relevant functional departments of the government should perform administrative supervision duties on the project according to relevant national laws and regulations, focusing on the quality of public products and services, price and charging mechanism, safe production, environmental protection and workers’ rights and interests.
If the social capital or the project company refuses to accept the administrative supervision decision of the government functional departments, it may apply for administrative reconsideration or bring an administrative lawsuit according to law.
Article 31 The government, social capital or project company should publicly disclose the relevant information of the project according to law, protect the public’s right to know and accept social supervision.
Social capital or project company shall disclose the quantity and quality of project output, project operation status and other information. The government should disclose the contract terms, performance monitoring reports, mid-term evaluation reports and major changes or terminations of government and social capital cooperation projects that do not involve state secrets or commercial secrets.
If the public and project stakeholders find that the project is illegal or in breach of contract, or the public products and services are not up to standard, they can submit it to the government functional departments for supervision and inspection.
Chapter VI Project Handover
Article 32 When the project is handed over, the project implementing agency or other agencies designated by the government will recover the project assets agreed in the project contract on behalf of the government.
The project contract should clearly stipulate the transfer form, compensation method, transfer content and transfer standard. Handover forms include termination of handover upon expiration and termination of handover in advance; Compensation methods include free transfer and paid transfer; The transfer contents include project assets, personnel, documents and intellectual property rights; Handover standards include indicators such as equipment integrity rate and minimum serviceable life.
If paid transfer is adopted, the compensation scheme shall be clearly stipulated in the project contract; If there is no agreement or the agreement is unclear, the project implementation agency shall draw up a compensation plan in accordance with the principle of "restoring the same economic status" and report it to the government for approval before implementation.
Article 33 The project implementation agency or other agencies designated by the government shall set up a project handover working group, confirm the handover situation and compensation method with social capital or project company according to the project contract, and formulate an asset evaluation and performance test plan.
The project transfer working group shall entrust an asset appraisal institution with relevant qualifications to conduct asset appraisal on the transferred assets according to the appraisal method agreed in the project contract as the basis for determining the compensation amount.
The project handover working group shall conduct performance tests on the handed-over assets in strict accordance with the performance test scheme and handover standards. If the performance test results are not up to standard, the handover working group shall require social capital or project company to carry out recovery repair, update and reset or withdraw the handover maintenance guarantee.
Article 34 Social capital or project company shall hand over the project assets, intellectual property rights and technical legal documents that meet the performance test requirements, together with the list of assets, to the project implementation agency or other institutions designated by the government, and complete the legal transfer and management transfer procedures. Social capital or project company should cooperate with the smooth transition of project operation.
Article 35 After the handover of the project is completed, the financial department (government and social capital cooperation center) shall organize relevant departments to evaluate the performance of the project output, cost-effectiveness, regulatory effectiveness, sustainability, application of government and social capital cooperation mode, and disclose the evaluation results according to relevant regulations. The evaluation results can be used as a reference for the government to carry out the cooperative management of government and social capital.
Chapter VII Supplementary Provisions
Article 36 This operation guide shall come into force as of the date of issuance and shall be valid for 3 years.
Article 37 The Ministry of Finance shall be responsible for the interpretation of this operation guide.
Attachment: 1. Operation Flow Chart of Government and Social Capital Cooperation Project
2. Noun explanation
Attachment 1
Operation flow chart of government and social capital cooperation project
Attachment 2
Noun interpretation
1. Whole Life Cycle refers to the complete cycle of a project from design, financing, construction, operation, maintenance to termination of handover.
2. Output Specification refers to the economic and technical standards that the project assets should meet after the completion of the project, as well as the delivery scope, standards and performance levels of public goods and services.
3. Value for Money, VFM) refers to the long-term maximum benefits that an organization can obtain by using its available resources. VFM evaluation is a widely used evaluation system in the world to evaluate whether the public goods and services traditionally provided by the government can use the cooperation model of government and social capital, aiming at optimizing the efficiency of public resources allocation and utilization.
4. Public Sector Comparator, PSC) refers to the present value of the total cost of public goods and services provided by the government in the traditional procurement mode during the whole life cycle, which mainly includes the net cost of construction and operation, transferable risk bearing cost, retained risk bearing cost and competitive neutral adjustment cost.
5. User Charge refers to the direct purchase of public goods and services by the final consumer.
6. Viability Gap Funding refers to the economic subsidies given to social capital or project company by the government in the form of financial subsidies, equity investment, preferential loans and other preferential policies, because the fees paid by users are not enough to meet the cost recovery and reasonable return of social capital or project company.
7. Government Payment refers to the direct purchase of public goods and services by the government, which mainly includes Availability Payment, Usage Payment and Performance Payment.
The basis of government payment is mainly the availability of facilities, the usage and quality of products and services.
8. Operations & Maintenance (O&M) refers to the operation mode of government-social capital cooperation projects in which the government entrusts the operation and maintenance of public assets in stock to social capital or project companies, and social capital or project companies are not responsible for user services. The government retains the ownership of assets and only pays the entrusted operation fee to social capital or project company. The term of the contract generally does not exceed 8 years.
9. Management Contract (MC) refers to the project operation mode in which the government entrusts the operation, maintenance and user service of public assets in stock to social capital or project company. The government retains the ownership of assets and only pays management fees to social capital or project companies. Management contracts are usually used as a transitional mode of transfer-operation-transfer, and the contract period is generally not more than 3 years.
10. Build-Operate-Transfer (BOT) refers to the project operation mode in which social capital or project company undertakes the responsibilities of design, financing, construction, operation, maintenance and user service of new projects, and the project assets and related rights are handed over to the government after the contract expires. The contract term is generally 20-30 years.
11. Build-Own-Operate (BOO) evolved from BOT mode. The main difference between the two modes is that social capital or the project company owns the project ownership under BOO mode, but the contract must specify the constraint clauses to ensure public welfare, which generally does not involve the handover of the project upon expiration.
12. Transfer-Operate-Transfer (TOT) refers to the project operation mode in which the government transfers the ownership of existing assets to social capital or project company for compensation, which is responsible for operation, maintenance and user service, and the assets and their ownership are handed over to the government after the contract expires. The contract term is generally 20-30 years.
13. Rebuild-operate-transfer (ROT) refers to the project operation mode in which the government adds renovation and expansion contents on the basis of TOT mode. The contract term is generally 20-30 years.
