| NO | ASPECTS | DESCRIPTION |
| 1. | Legal and Regulatory Framework | China has been working on PPP related laws and franchising regulations, constructing PPP legal system consisting of laws and regulations, policy guidlines and detailed implementing rules. - In the aspect of laws and regulations, China has amended the Budget Law and established Govenment Procurement Law Implementing Regulations. - In the aspect of policy guidlines, the Opinions of State Council on Strengthening Local Government Debts Management (SC 2014 No. 43), Decision of State Council on Deepening Reform of Budgetary Management System (SC 2014 No. 45), Guiding Opinions of State Council on Innovating Investment and Financing Mechanism in Priority Areas and Encouraging Private Investment (SC 2014 No. 60), Circular of the Ministry of Finance on Issues Related to Expanding the Use of PPP Modality (MOF 2014 No. 60), and Circular of the Ministry of Finance on Issuing "The Cleaning Up and Screening Method of Incorporating Local Government's Debt Stock into Budgetary Management" (MOF 2014 No. 351) are all in place. - In the aspect of detailed implementing rules, the PPP Implementation Guidebook, PPP Project Contract Guidebook, Interim Provisions on Government Procurement Competitive Negotiation Management, and Measures for Administration of PPP Project in Government Procurement are available. The Fiscal Capacity Appraisal Guidelines and Cost-Effective Evaluation Guidelines are being developed. In the aspect of law application, - The private sector contractor in a PPP project should be chosen in accordance with the current Government Procurement Law; - Government's payment obligation in a PPP project is incorporated into cross-year budget management and government comprehensive financial report in accordance with China's Budget Law; - Rights and obligations of both public and private contracting parties in PPP projects could seek adjustment and protection according to China's Contract Law; - Land acquisition method and procedure in PPP projects are stipulated by the Land Administration Law and related regulations. - Laws and regulations on project planning, approval, feasibility study, environmental impact assessment and design are in place to provide prophase planning and approval of a project with legal basis. - Relevant environmental, safety and industry suvillance laws and regulations, such as China's existing Environmental Protection Law, Safety Production Law, are also in place to supervise PPP projects. |
| 2. | Involved Government Agencies | - Ministry of Finance of PRC leads the effort to organize and coordinate PPP work, and is responsible for developing PPP related policies and carrying out planning and administration on PPP with other departments as National Development and Reform Commission, Ministry of Housing and Urban-Rural Development, Ministry of Environmental Protection, People's Bank of China and China Banking Regulatory Commission, etc. Financial departments at all levels are responsible for PPP project collecting and screening, budget management, fiscal capacity appraisal, cost- effective evaluation, government debt management and procurement management. - China's National Development and Reform Commission participates in PPP policy-making, planning and administration; its subordinate departments at different levels are responsible for PPP project approval and feasibility study ratification. - Relevant administrative departments: Ministry of Housing and Urban-Rural Development, Ministry of Environmental Protection, Ministry of Agriculture and Ministry of Transport are involved in their respective industry policy-making, and their subordinate departments at all levels are in charge of project launch, implementation and supervision. - Relevant regulatory departments including administration departments for Industry and Commerce, Work Safety and Environmental Protection are responsible for PPP project administrative supervision. - Currently, China has established a national-level PPP Center in Ministry of Finance to carry forward PPP related policy research, consultation and training, statistics and international communication, etc. - Governments at or above the county level would take in charge of PPP project approval and implementation at their respective level. |
| 3. | Supporting Agencies | - Governments at or above the county level could set up a special coordination mechanism to undertake project evaluation, coordination and supervision, etc. - Finance departments (PPP Centers where applicable) at different levels of government are in charge of project collecting and screening. - Government or designated functional departments and organizations could serve as project implementing body to be responsible for project preparation, procurement, supervision and handover. |