PPP Project of Urban and Rural Water Supply and Drainage Integration of Mianzhu City, Sichuan Province
[2017-01-17 09:10:30] From:

   The project is located in Mianzhu, Deyang City, Sichuan Province, and is executed by Mianzhu Bureau Housing and Urban-Rural Development. The project has been selected as one of the third batch of demonstration projects of the Ministry of Finance. The project is under the industry of “municipal works---water supply”, including four parts (township water supply, township sewage, urban water supply and park sewage). The project takes the lead in proposing the operation ideas of three integrations of “city and township”, “water supply and drainage” and “stock and increment”, and hence achieves a new mode with unified standard and unified management.

   Total investment of the project is about RMB 565 million, a project company will be established between investor designated by the government and the bid-winning investor. Capital ratio in total investment of the project is about 50%, in which, investment from the government-designated institution accounts for 10%, investment from social capital institution accounts for 90%; the rest of 50% gap in total investment is proposed to be obtained by financing. The franchise term is 30 years and the construction period is 3-4 years.

   The project adopts the operation mode BOT+ROT and the repayment mechanism of “feasible subsidies for financing gap”, of which, the stock asset involves 22 water supply projects in township, 5 water supply projects in urban districts, 6 existing sewage treatment plants in township and 1 sewage treatment plant in industrial park, which are proposed to adopt the operation mode TOT (Transfer – Operate – Transfer). The proposed new projects involve 13 new sewage treatment plants in township, 3 sewage treatment plants in industrial park, 1 water supply plant in township, which are proposed to adopt the operation mode BOT (Build – Operate – Transfer). Pipe network for urban water supply of 114.081km, water supply network for township of 2197.03km, urban/rural water supply network and equipment of water supply plant are proposed to adopt ROT (Renovate-Operate-Transfer) operation mode. Social capital party will be introduced to assist the government to optimize the design of the specific contents of the project, so as to improve the present status of facilities and equipment.

   For risk allocation of the project, the government will be responsible for the matching and supporting risk, payment delay risk, description of output change, performance and design requirements, inflation risks in operation period etc.; the social capital institution will be responsible for the most non-system risk during construction and operation. Both the government and the social capital institution will be responsible for risks arising from policy, law, tax and force majeure.