Infrastructure construction programs in Beijing will no longer
be operated exclusively by the government. From October 1, Beijing
will carry out a franchise system to absorb individual and foreign
investment. It means in the future, any domestic or foreign
organization and individual has the right to invest in
infrastructure construction in Beijing. Recently, officials at
Beijing municipal law office answered relevant questions for
Beijing Youth Daily.
Reporter: What's the significance of implementing this
measure?
Law office: It prescribes that in the future any domestic
or foreign organization or individual may invest and operate
infrastructure constructions in Beijing. According to this measure,
enterprises in China or abroad, and other organizations are all
equal in competing for infrastructural franchises in line with
regulations.
Reporter: Why will the government implement the
measure?
Law office: The purpose is to promote the market of the
city's infrastructure construction, expand investments and protect
the rights of investors, franchisers as well as consumers.
Shortage of investment in city infrastructure has meant a big
problem for governments at various levels, as infrastructure
constructions needs a lot of money that the government usually
cannot afford. The implementation of the franchise system may help
better absorb and take advantage of individual and foreign
investments in the local city's infrastructure construction. It's
also conducive to reducing government operation costs and providing
better public products and services to society.
Reporter: Currently, what kinds of infrastructure are
allowed for franchise?
Law office: During a set time, enterprises and other
organizations may operate the following infrastructure: water
supply, heating, gas, drainage, disposal
of sewage and solid garbage, toll charging, subway trains, city
railway and other public transportations and city
infrastructures.
Reporter: By what means can franchisers operate?
Law office: First, in the allotted time, the franchiser
is permitted to be in charge of the investment, construction and
operation of the program. When the deadline is over, the program
should be transferred free of charge. This is suited to newly
established infrastructure programs. Second, during a set time, the
franchiser is allowed to take over the operation of the city
infrastructure program. When the deadline is over, the program
should be transferred free of charge. This one suits existing
programs. Third, in an allotted time, the franchiser will be in
charge of offering public services, such as the operation of public
transportation. Fourth, other ways granted by the municipal
government.
Reporter: How can franchisers get a return on their
investment?
Law office: The measure stipulates that franchisers may
charge for public products they offer; enjoying the rights to open
and operate other business related to the city's infrastructure.
They also enjoy relevant government subsidies as well as other
income generating systems granted by the municipal government.
(China.org.cn translated by Li Xiao, September 25, 2003)