Beijing invites investment to build urban infrastructure
( 2003-10-02 11:11) (Xinhua)
Beijing opens Wednesday its
urban infrastructure construction to private and foreign capital in the hope of
increasing public services and cutting government management costs.
Beijing introduced a franchise management method Wednesday to replace the
former government monopoly. Any firm or individual will be able to invest and
run urban infrastructure in the Chinese capital, including water, gas, and
heating supplies, sewage, drainage, solid waste processing, charged road, city
rail, subway, other urban public transportation, and other urban public
infrastructures.
Franchisees can either invest, build, manage within a certain time limit and
then transfer free of charge, or they can choose to run infrastructure within a
certain time limit and then transfer free of charge. The government may also
authorize franchisees to provide some public services within an agreed time
limit. Or the government and the franchisees may reach an agreement on other
methods.
Franchisees benefit by charging the public products for services they
provide, enjoying other management rights and benefits related to urban
infrastructure, and receiving government subsidies.
Pooling a huge amount of funds for urban infrastructure construction has been
a major problem faced by governments at various level in China. To practice
franchise management makes up for a shortage of funds by inviting non-government
and foreign funding. It also helps reduce running cost that used to be covered
by the government.
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