According to news, Xuzhou, Jiangsu Province, will build a sample of the national water supply PPP project and will implement formal water supply in September this year, which will benefit the residents of Xuzhou. The project will bring a certain development market to the water meter industry.
In March, Luoma Lake surging in spring. From the intake of Luoma Lake, located in Yaowan Town, Xinzhou City, Xuzhou, to the Xuzhuang Water Plant in Xuzhou Economic and Technological Development Zone, and then to the Liuwan Water Plant, it is a busy construction site. In another 6 months, the 80-kilometer long construction line will be fully completed, and the Luoma Lake water will flow into thousands of households through the raw water pipeline.
Social capital grabs opportunities:
Selected for the first batch of 30 PPP demonstration projects nationwide On February 16th, on the Provincial Government Procurement Online, a “Public Bidding Announcement for Xuzhou Liaoma Lake Water Source and Raw Water Pipeline PPP Projects†attracted Beijing First, Yuehai Group, and Beijing Enterprises. Large water supply group companies such as the Group competed to participate.
This large-scale water supply project with a total investment of 2.4 billion yuan is one of the first 30 PPP demonstration projects identified by the Ministry of Finance. Why does it get the favor of social capital? In this regard, industry sources said that from the project's own investment scale, risk sharing, transaction structure, return mechanism, contract terms, lead demonstration, social effects and other aspects are worthy of attention.
According to the “Announcementâ€, government procurement includes licensing and maintenance services for the Luoma Lake Raw Water Assets and Weishan Lake Raw Water Assets. On the basis of full competition, Guangdong Yuehai Holding Group Co., Ltd., with total assets of 80 billion yuan and a water treatment scale of 12.7 million tons per day, came to the fore with outstanding raw water operation technology, financial and legal solutions, and the government representative Fang Xinshui Co., Ltd. Jointly establish a PPP project company (SPV). In the project operation mode, the TOP (transfer-operate-transfer) mode of operation in PPP is adopted. That is, the government transfers the project assets and operation rights to the raw water project company. The project company will coordinate the operation and maintenance of the urban raw water project within the authorization period. At the end of the authorization period, the entire asset of the project will be transferred to the government or a new project company.
“The first batch of demonstration projects in the country was selected because the enthusiasm of social capital was fully mobilized.†Li Jingcheng, director of the PPP Office of Xuzhou City and director of the Municipal Bureau of Finance, said that most of the assets after the completion of the project are pipelines and houses, and their asset life is not low. In 50 years, after the end of the franchise period, the project company still has a residual value of assets, and the loan of the project company has not yet been repaid. To avoid the worries of social capital, the government will pay the corresponding amount to social capital according to the proportion of social capital held by the government. At the same time, the recipient of the project service is a water company. Based on the long-term identification bias of the water company and the government on the water price, it will directly affect the determination of the project's raw water sales price. Therefore, the project will directly settle the raw water price by the government and the downstream water company to ensure that social capital invests in the relevant rights and interests of this project.
The government is enthusiastic enough:
Reducing the financial burden + improving operational efficiency + Creating talent reserve army The Luoma Lake water source area and the original water pipeline project were selected as the first batch of PPP demonstration projects in the country, and the Xuzhou City Government’s enthusiasm was even more abundant. It is understood that in March of last year, Xuzhou took the lead in Jiangsu to issue the "Implementation Opinions of the Municipal Government on Promoting the Government and Social Capital Cooperation (PPP) Model (Trial)" to guide the operation of the PPP standard.
"It has been estimated that if all depreciation is calculated within the 30-year concession period, the initial financial subsidy will exceed 200 million yuan. According to the current mode of operation, the initial financial subsidy is below 100 million yuan, and the annual expenditure of local finance is smoothed. The processing has greatly reduced the financial burden for the current period, and at the same time, during the implementation of the project, the social capital party insisted that the investment return rate should be higher than 8%, and after sufficient competition and open bidding, the final bid price would be 6.96%, which achieved value for money. "As far as the government has spared no effort to promote it, Li Jingcheng frankly stated that the project adopts the PPP model, which can rapidly improve the service capacity of raw water supply and avoid the problems of inefficiency, institutional bloat, and cost increase caused by direct government operations.
In addition, the introduction of project identification, completion of value assessment, financial sustainability analysis, preparation of implementation plans, and entry into the government procurement process until landing, will be conducive to the exercise of talent, reserve, and lay the foundation for the implementation of follow-up PPP projects in Xuzhou City. solid foundation.
Establish a national benchmark:
The transparent information + marketization operation was selected as the first batch of PPP demonstration projects in the country, which not only means that the project's name is louder, but also means that the project operation must be more standardized, and the project experience can be replicated and promoted, thus becoming the benchmark in the national PPP project. .
Wang Zhihui, chairman and general manager of Xinshui Company, said that in order to ensure transparency of information, the project adopted public bidding to purchase social capital, and each link was transparent and open. In March of last year, in the first batch of PPP project advisory bodies published by the Provincial Department of Finance, consulting agencies were publicly selected through competitive consultations. Eventually, Jiangsu Modern Assets Investment Management Consulting Co., Ltd. served as the project advisory service agency. On November 27 last year, the prequalification notice of social capital was issued at the Provincial Procurement Center, the procurement announcement was issued at the Provincial Procurement Center on December 21st, and the prequalified social capital was organized on December 23 and 24 in accordance with the procurement process of the Provincial Procurement Center. On-site visits to Weishan Lake and Luoma Lake raw water sites were on site. On December 25th, the water affairs bureau of Xuzhou City publicly answered questions. On February 2, 2016, the company opened a bid at the Provincial Procurement Center, and randomly selected expert appraisals from the provincial expert database, publicized 5 working days without any objection, and issued a formal bid announcement on February 16.
The successful operation of the project also benefits from market operation. Wang Zhihui said that in the quotation setting, the competitive bidding point of the project is the core element of government procurement of social capital, and through the quotation of social capital on the competition point, the goal of full competition and merit selection can be achieved. In this project, the purchase price of the raw water supply service of the unit is measured using the operating cost compensation plus the principle of reasonable return, and the annual purchase price during the franchise period is relatively independent. For this reason, the bidding competition point is set to be the unitary quotation of the floating or floating rate of social capital according to the purchase price of the original 30-year-old raw water supply service publicized by the government.
In March, Luoma Lake surging in spring. From the intake of Luoma Lake, located in Yaowan Town, Xinzhou City, Xuzhou, to the Xuzhuang Water Plant in Xuzhou Economic and Technological Development Zone, and then to the Liuwan Water Plant, it is a busy construction site. In another 6 months, the 80-kilometer long construction line will be fully completed, and the Luoma Lake water will flow into thousands of households through the raw water pipeline.
Social capital grabs opportunities:
Selected for the first batch of 30 PPP demonstration projects nationwide On February 16th, on the Provincial Government Procurement Online, a “Public Bidding Announcement for Xuzhou Liaoma Lake Water Source and Raw Water Pipeline PPP Projects†attracted Beijing First, Yuehai Group, and Beijing Enterprises. Large water supply group companies such as the Group competed to participate.
This large-scale water supply project with a total investment of 2.4 billion yuan is one of the first 30 PPP demonstration projects identified by the Ministry of Finance. Why does it get the favor of social capital? In this regard, industry sources said that from the project's own investment scale, risk sharing, transaction structure, return mechanism, contract terms, lead demonstration, social effects and other aspects are worthy of attention.
According to the “Announcementâ€, government procurement includes licensing and maintenance services for the Luoma Lake Raw Water Assets and Weishan Lake Raw Water Assets. On the basis of full competition, Guangdong Yuehai Holding Group Co., Ltd., with total assets of 80 billion yuan and a water treatment scale of 12.7 million tons per day, came to the fore with outstanding raw water operation technology, financial and legal solutions, and the government representative Fang Xinshui Co., Ltd. Jointly establish a PPP project company (SPV). In the project operation mode, the TOP (transfer-operate-transfer) mode of operation in PPP is adopted. That is, the government transfers the project assets and operation rights to the raw water project company. The project company will coordinate the operation and maintenance of the urban raw water project within the authorization period. At the end of the authorization period, the entire asset of the project will be transferred to the government or a new project company.
“The first batch of demonstration projects in the country was selected because the enthusiasm of social capital was fully mobilized.†Li Jingcheng, director of the PPP Office of Xuzhou City and director of the Municipal Bureau of Finance, said that most of the assets after the completion of the project are pipelines and houses, and their asset life is not low. In 50 years, after the end of the franchise period, the project company still has a residual value of assets, and the loan of the project company has not yet been repaid. To avoid the worries of social capital, the government will pay the corresponding amount to social capital according to the proportion of social capital held by the government. At the same time, the recipient of the project service is a water company. Based on the long-term identification bias of the water company and the government on the water price, it will directly affect the determination of the project's raw water sales price. Therefore, the project will directly settle the raw water price by the government and the downstream water company to ensure that social capital invests in the relevant rights and interests of this project.
The government is enthusiastic enough:
Reducing the financial burden + improving operational efficiency + Creating talent reserve army The Luoma Lake water source area and the original water pipeline project were selected as the first batch of PPP demonstration projects in the country, and the Xuzhou City Government’s enthusiasm was even more abundant. It is understood that in March of last year, Xuzhou took the lead in Jiangsu to issue the "Implementation Opinions of the Municipal Government on Promoting the Government and Social Capital Cooperation (PPP) Model (Trial)" to guide the operation of the PPP standard.
"It has been estimated that if all depreciation is calculated within the 30-year concession period, the initial financial subsidy will exceed 200 million yuan. According to the current mode of operation, the initial financial subsidy is below 100 million yuan, and the annual expenditure of local finance is smoothed. The processing has greatly reduced the financial burden for the current period, and at the same time, during the implementation of the project, the social capital party insisted that the investment return rate should be higher than 8%, and after sufficient competition and open bidding, the final bid price would be 6.96%, which achieved value for money. "As far as the government has spared no effort to promote it, Li Jingcheng frankly stated that the project adopts the PPP model, which can rapidly improve the service capacity of raw water supply and avoid the problems of inefficiency, institutional bloat, and cost increase caused by direct government operations.
In addition, the introduction of project identification, completion of value assessment, financial sustainability analysis, preparation of implementation plans, and entry into the government procurement process until landing, will be conducive to the exercise of talent, reserve, and lay the foundation for the implementation of follow-up PPP projects in Xuzhou City. solid foundation.
Establish a national benchmark:
The transparent information + marketization operation was selected as the first batch of PPP demonstration projects in the country, which not only means that the project's name is louder, but also means that the project operation must be more standardized, and the project experience can be replicated and promoted, thus becoming the benchmark in the national PPP project. .
Wang Zhihui, chairman and general manager of Xinshui Company, said that in order to ensure transparency of information, the project adopted public bidding to purchase social capital, and each link was transparent and open. In March of last year, in the first batch of PPP project advisory bodies published by the Provincial Department of Finance, consulting agencies were publicly selected through competitive consultations. Eventually, Jiangsu Modern Assets Investment Management Consulting Co., Ltd. served as the project advisory service agency. On November 27 last year, the prequalification notice of social capital was issued at the Provincial Procurement Center, the procurement announcement was issued at the Provincial Procurement Center on December 21st, and the prequalified social capital was organized on December 23 and 24 in accordance with the procurement process of the Provincial Procurement Center. On-site visits to Weishan Lake and Luoma Lake raw water sites were on site. On December 25th, the water affairs bureau of Xuzhou City publicly answered questions. On February 2, 2016, the company opened a bid at the Provincial Procurement Center, and randomly selected expert appraisals from the provincial expert database, publicized 5 working days without any objection, and issued a formal bid announcement on February 16.
The successful operation of the project also benefits from market operation. Wang Zhihui said that in the quotation setting, the competitive bidding point of the project is the core element of government procurement of social capital, and through the quotation of social capital on the competition point, the goal of full competition and merit selection can be achieved. In this project, the purchase price of the raw water supply service of the unit is measured using the operating cost compensation plus the principle of reasonable return, and the annual purchase price during the franchise period is relatively independent. For this reason, the bidding competition point is set to be the unitary quotation of the floating or floating rate of social capital according to the purchase price of the original 30-year-old raw water supply service publicized by the government.
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