PPP Construction Project of Comprehensive Governance of Water Environment in the Langzhong Ancient City in Nanchong City, Sichuan Province
[2017-01-20 10:47:47] From:

   The project is located in Langzhong ancient city, Nanchong City, Sichuan Province, and is executed by Langzhong Bureau of 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 “ecological construction and environmental protection – comprehensive governance”. The ancient section of Jialing River in Langzhong city is disturbed by human activities. Soil erosion, reduction of animal habitat land and pollution of river bed have destroyed the ecological environment of river to a certain extent. Ecological wetland construction of Langzhong ancient city, construction project of sewage treatment plant of the ancient urban area, and rain/sewage diversion and comprehensive pipe gallery project of the ancient city will be packaged together into PPP project scope, so as to build a new water environment system applicable for development of Langzhong city for sustainable development of Langzhong city and improvement of Jialing River environment.

   The total investment of the project is RMB 2,474,836,000, of which the construction investment of the ecological wetland construction project is RMB 748,546,400, land acquisition/demolition costs is RMB 500 million, the interest in construction period is about RMB 117,038,600, the total amount is RMB 1,365,585,000; engineering investment for relocation project of sewage treatment plant is RMB 249,894,200 in short term and RMB 195,170,200 in long term, the land acquisition/ demolition costs is RMB 300 million, the construction interest is RMB 58,578,800, the total amount is RMB 803,643,200; engineering investment for rain/sewage diversion and comprehensive pipe gallery project of the ancient city is RMB 287,641,000, interest in construction period is RMB 17,966,900, the total amount is RMB 305,607,900. The audit result shall prevail.

   Langzhong government authorizes Langzhong Bureau of Housing and Urban-Rural Development to select the social capital institution for the execution agencies. The social capital institution that has won the bid and the government-authorized investment representatives jointly will form a project company, in which the government will hold 10% of the shares and the social capital institution will hold 90% of the stock. The project’s existing capital accounts for 25% of the total investment, shareholders of each party will be responsible for contribution of the project capital at contribution proportion. Financing gap (75%) of total investment can be obtained by means of financing. In this project, the annual expenditure of the government accounts for 0.14%--5.48% of general public budget expenditure of the District Finance, which is less than the upper limit 10%.

   The project construction is divided into the following parts. Ecological wetland construction of the ancient city: the construction site is located on both banks of Jialing River and the Zhouyu Island within the River in Langzhong City; the project scope: inland river is about 23.5 km long, the river area is 15 square kilometers, the ecological wetland area to be constructed is 3.67 square kilometers. Construction project of sewage treatment plant in ancient urban district: new construction of sewage treatment plant and sewage intercepting pipe expansion project; rain/sewage diversion and comprehensive pipe gallery project of the ancient urban district: build sewage pipeline is about 44.95 km, rainwater pipe pipeline is about 25.4 km.

   The project adopts the operation mode BOT+ROT and has franchise term of 23 years, of which the construction period of ecological wetland project is about 3 years and the operation period is 10 years. The construction period of the sewage treatment plant is about 3 years and the operation period is 20 years. The construction period of the comprehensive pipe gallery project is about 20 months and the operation period is 10 years. The project adopts the repayment mechanism of “payment by users + subsidies by government for financing gap”, of which, two public welfare sub-projects is proposed to be repaid by the government; the sewage treatment project is proposed to be repaid by mode of “payment by users + government’s subsidies for financing gap”.