Industry News | Six departments revised and issued the "Measures for the Administration of Infrastructure and Public Utilities Concessions"

Key points overview:

1. Clarify that franchising should focus on user payment items, and further clarify that user payment includes franchisors directly charging users, as well as the government or its legally authorized institutions charging users on their behalf. List the implementation methods of franchising, including "new construction/expansion operation transfer (BOT)", "new construction/expansion ownership and operation transfer (BOOT)", "transfer operation transfer (TOT)" and other implementation methods, and stipulate that it is prohibited to evade operational obligations or advance construction through construction transfer (BT).

2. Extend the maximum term of franchising to 40 years, encourage private enterprises to participate in franchising projects through various means such as direct investment, sole proprietorship, holding, and participation in consortia, and comply with the provisions of the "Guiding Opinions" on the support list for private enterprise project areas and equity ratios, clarifying that the benefits obtained by franchisors from improving business management and technology belong to them.

3. Encourage financial institutions to provide financial advisory, financing advisory, syndicated loans and other financial services for franchise projects. Franchise projects can legally and compliantly use expected income to pledge loans and use project related income as a source of repayment. Encourage insurance funds to provide diversified financial support for franchise projects through various means such as debt, equity, and asset securitization products.

4. Encourage franchising projects to establish private equity funds in a market-oriented manner, introduce strategic investors, and expand investment and financing channels by issuing corporate bonds, corporate bonds, non-financial corporate debt financing tools, and other means.

5. Improve the government's integrity performance mechanism, incorporate the performance of government agency franchise agreements into the government's integrity assessment and evaluation system, and recognize and punish breach of contract and breach of trust in accordance with the measures formulated by the leading department of the State Council's social credit system construction.

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