Beijing Municipality, Concessions for Urban Infrastructure Measures

Promulgated: August 28 2003
Effective: October 1 2003
Applicability: "Concessions for urban infrastructure" refers to the granting of special administrative permits to engage in such urban infrastructure as water supply, gas supply, heating, water drainage, waste water treatment, solid waste disposal, toll roads, subways, city rails, and other urban public transport within a certain period and scope (Article 2).

Main contents: The Measures stipulate that concessionaires may, for a specified period of time, invest in the construction and operation of an infrastructure project and transfer the infrastructure without consideration upon expiration; for a specified period of time operate the infrastructure and transfer the operation without consideration upon expiration; or for a specified period of time provide public services (Article 3). Such concessionaires may receive revenue from the products or services provided to the public, enjoy the rights and interests in other development and operations related to the urban infrastructure, or receive relevant subsidies granted by the government (Article 6). The determination and adjustment of the price of the products or services of a concession project shall follow the provisions of the pricing law (Article 13). Concessionaires shall be determined by means of bidding. If the concession only involves the operation of urban infrastructure as stipulated in Article 3(2), it may also be granted by direct appointment with the approval of the municipal government (Article 12). A concession agreement shall be signed including such terms as the rights and obligations of the concessionaire, liability for breach of contract and the method for dispute resolution (Article 14). Concessions cannot be transferred; otherwise the concession agreement will be terminated (Article 21). Upon expiration, the project company established by the concessionaire may apply for an extension (Article 23).