Team Set-Up and Staffing

The Procuring Authority exercises influence and monitoring by the virtue of its equity investment in the Project Company, and consequently its presence in the governance structure of the Project Company and its right to veto decisions on health and safety and environmental issues, as described below.

The Project Company governance structure consists of a shareholders' committee, a board of directors and a supervisory committee. The State-owned Assets Operation and Management Centre of Qiaoxi District of Zhangjiakou Municipality (authorised by the Qiaoxi District government) and BYHC form the shareholders' committee, the highest authority of the Project Company that exercises the rights and responsibilities in accordance with the Company Law of China. The committee chooses the members of both the board of directors and the supervisory committee. Remuneration matters of members of both the board of directors and the supervisory committee also rest with the shareholders' committee.

There are five members of the board of directors, at least one of which must come from the government of the Qiaoxi District. Each member of the board of directors, including the Chairman, has one vote each when decisions need to be made. There are certain items, such as health, safety and environmental protection, where the government member has veto power. The supervisory committee consists of three members, one of whom must come from the government of the Qiaoxi District and act as the head of the supervisory committee. By the government of the Qiaoxi District having representatives on each committee and board, the Procuring Authority is able to monitor the performance of the Project Company, as well as play a role in making key decisions in relation to the project.

The training for the Procuring Authority staff is primarily 'on the job' training, with employees learning from the technical expertise of BYHC. This was emphasised as operations began, as it was an effective way to improve relations between the Procuring Authority and the management of BYHC. There is no structured training programme in place for Procuring Authority staff.