The New Project of Fujian Rural Domestic Sewage and Garbage Leachate Field Adopts PPP Mode

Recently, our province formulated the introduction of management measures, clearly requires rural sewage treatment and household waste treatment in two areas of new projects, must be forced to apply PPP model. The aim is to give full play to the role of PPP model in the field of public service construction, and to overcome the deliberate circumvention of this innovative model by individual places.

In remote areas of townships, sewage and domestic waste disposal are short boards for the development of rural social undertakings. In practical work, some places for various reasons, away from the projects conducive to capital investment and management innovation PPP model which makes the social capital difficult to enter, so that the development of rural social undertakings "Last Kilometer" bottleneck is difficult to open. For this reason, our province provides mandatory regulations on the construction modes of new projects in the above two fields, and clearly stipulates in the field of public parking lots that new projects with cash flow, high degree of marketization and relatively mature operation shall be subject to compulsory identification and demonstration, and PPP mode shall also be applied if they meet the conditions.

In view of the nature of "small and scattered" in these short board projects, the single launch is difficult to form economies of scale, resulting in the problem of social capital is not interested, the provincial finance department, the Department of Housing and Urban-Rural Development jointly issued on encouraging social capital investment in townships and rural sewage treatment, household waste disposal, urban public parking PPP project package implementation program, take the lead in the national launch PPP project package, package the "small and scattered" project, take the overall tender, the overall contract, the overall design, the implementation of the method, the formation of scale advantage, attract social capital investment, to ensure that the project can be recruited and implemented

In response to the issue of investment returns of social capital concerns, the document stipulates that the internal return on social capital investment capital may be measured on an annualized basis of not more than 10%, and that it should be determined by competitive means in the light of the characteristics of the industry and the level of interest rates, and that the PPP-guided fund will guide the fund through equity, The combination of creditor's rights or equity bonds provides priority support to the project, while the provincial finance also gives pre-financing subsidies to the county (city, district) PPP project package, and the eligible projects, the subsidy floats 10%-20%, and guides the transformation of the fiscal expenditure mode from "ConstructionCompensation" to "Operation Compensation".

Sauce: China Sewage Treatment Engineering Network

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