China, People's Republic of: Preparing a Concession Law for Infrastructure and Public Services

Sovereign Project | 48007-001 Status: Active

Summary

The country partnership strategy positions ADB's public sector operations to strengthen the enabling environment for private sector development by financing infrastructure, supporting policy and regulatory reforms, and improving access to finance. Urban development is identified as a priority area for support for private sector participation and PPPs during 2011-2015. The CPS also provides for the complementary support for knowledge sharing to promote best practices.

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Project Name Preparing a Concession Law for Infrastructure and Public Services
Project Number 48007-001
Country China, People's Republic of
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8717-PRC: Preparing a Concession Law for Infrastructure and Public Services
Technical Assistance Special Fund US$ 400,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Public sector management - Public expenditure and fiscal management

Gender Equity and Mainstreaming No gender elements
Description The country partnership strategy positions ADB's public sector operations to strengthen the enabling environment for private sector development by financing infrastructure, supporting policy and regulatory reforms, and improving access to finance. Urban development is identified as a priority area for support for private sector participation and PPPs during 2011-2015. The CPS also provides for the complementary support for knowledge sharing to promote best practices.
Project Rationale and Linkage to Country/Regional Strategy
Impact Strengthened enabling environment for PPPs

Project Outcome

Description of Outcome Enhanced awareness among senior decision makers of the legal framework needed to develop the PPP program
Progress Toward Outcome Implementation of the TA is on track.
Implementation Progress
Description of Project Outputs

1. Observations on the lessons from the PRC and international experience with PPP laws and regulations

2. Suggestions on the draft concession law

3. Dialogue on potential legal and regulatory amendments

4. Widely accessible knowledge product targeted at senior decision makers

Status of Implementation Progress (Outputs, Activities, and Issues)

The NDRC released draft concession measures for public comment in January 2015. Contributions were made by the TA consultants and ADB staff. The measures were approved by the State Council in April 2015.

An international workshop on Legislation on Infrastructure and Utilities Concessions was conducted in June 2015. The workshop was organized by the EA, PRC and ADB. The workshop was attended by representatives from the central governments, the financial and consulting sectors, academia, and development partner institutions. The workshop focused on concession legislation work of PRC, British and French experiences, and international practices and experience on legislation on infrastructure and utilities concession. A stocktake of the international experience and observations on the relevance of this experience for the PRC were prepared based on the workshop and shared with the NDRC.

International consultants have provided extensive follow-up advice and background material to NDRC. Their main report on the international experience with concession laws has been provided to NDRC, reviewed, and a paper is now being readied for publication.

The team leader, the lead national consultant, submitted a detailed review on developments in the PRC's PPPs and implications for a concession law. Drawing on this review, suggestions for drafting of the law were provided to NDRC.

The NDRC released draft concession regulations for public comment in December 2015. Comments were provided by the TA consultants and ADB staff. The TA supported analysis and dialogue that has fed into refinement of the regulation.

The TA supported an international consultation by the government's drafting team to UNCITRAL, the European PPP Centre, and PPP firms and advisors in Vienna, Paris, and Brussels.

A final, wrap-up meeting was held on 5 September, 2016 in Beijing. It was attended by the legal affairs departments of the National Development and Reform Commission (NDRC), State Council, and the Ministry of Finance. The meeting reviewed the TA's findings and suggestions on drafting of a concession law. The meeting reviewed the role of the TA in helping the law's drafting team develop a deep understanding of international concession and PPP legislation.

Geographical Location

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design TA design took into account views of key stakeholders. The need for the participation of key stakeholders in implementation has been built into the design.
During Project Implementation The NDRC will lead the engagement with government agencies and stakeholders during TA implementation.

Business Opportunities

Consulting Services The TA will engage the following consultants: Team Leader and Chief Legal Adviser (4 person-months), a PPP Expert (4 person-months), and a Coordinator (2 person-months), international Legal Adviser (2.5 person-months), and PPP Adviser (0.5 person-month)

Responsible Staff

Responsible ADB Officer Sugden, Craig
Responsible ADB Department East Asia Department
Responsible ADB Division Public Mgt, Financial Sector and Regional Coop Division, EARD
Executing Agencies
National Development and Reform Commission
No. 8 South Yuetan St.
Beijing 100824
China

Timetable

Concept Clearance 15 May 2014
Fact Finding 24 Feb 2014 to 24 Feb 2014
MRM -
Approval 16 Sep 2014
Last Review Mission -
Last PDS Update 29 Sep 2016

TA 8717-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
16 Sep 2014 09 Oct 2014 09 Oct 2014 15 Sep 2016 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
400,000.00 0.00 50,000.00 0.00 0.00 0.00 450,000.00 16 Sep 2014 393,077.75

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