Henan to Charge "Rent" for Underground Utility Tunnels, Prices Negotiable

2016-06-07 746 0人评论
 
Henan Province to implement paid-use system for underground utility tunnels. File photo

  The "house" that accommodates various underground pipelines—the underground utility tunnel—will charge "rent."

  To solve problems such as repeated road excavation and messy overhead cable networks, Henan Province will build over 1,000 kilometers of underground utility tunnels by 2020. As these tunnels will be built using the Public-Private Partnership (PPP) model, companies in telecommunications, power, and other sectors will pay corresponding fees when using urban underground utility tunnels, with pricing mainly determined by the market.

  Underground utility tunnels to charge "rent"

  On June 6, the Provincial Development and Reform Commission and the Provincial Department of Housing and Urban-Rural Development forwarded the notice of the National Development and Reform Commission and the Ministry of Housing and Urban-Rural Development on guiding opinions for implementing a paid-use system for urban underground utility tunnels.

  The underground utility tunnel project is known as the city's "underground Great Wall," where various pipelines share one corridor, solving the problem of units constantly digging up roads to lay pipelines.

  However, underground utility tunnels are not free to use. The notice stipulates that Henan Province will establish a paid-use mechanism for urban underground utility tunnels with prices mainly formed by the market.

  Pipeline units entering the tunnel shall pay paid-use fees to the tunnel construction and operation unit, with the fee standards determined through negotiation between the construction and operation unit and the pipeline units. The paid-use fees for urban underground utility tunnels include entry fees and routine maintenance fees. Entry fees are mainly used to offset tunnel construction costs and are paid by pipeline units to the construction and operation unit in a lump sum or in installments.

  Routine maintenance fees are mainly used to cover daily maintenance and management expenses of the tunnel, paid by pipeline units to the tunnel operation unit in installments according to the determined billing cycle.

  Underground utility tunnel construction

  Over 100 million yuan per kilometer

  According to the implementation opinions on promoting the construction of urban underground utility tunnels in the province previously issued by the Provincial Government Office, this year, five provincial-administered cities in Henan will start construction of underground utility tunnels.

  Among them, Zhengzhou will start 60 kilometers, Shangqiu 4 kilometers, Pingdingshan 1.3 kilometers, Jiyuan 1 kilometer, and Xinyang 0.5 kilometers.

  By 2020, all provincial-administered cities and directly administered counties (cities) in the province will start construction of utility tunnels. Zhengzhou has the longest planned mileage at 180 kilometers, followed by Luoyang at 60 kilometers.

  According to relevant plans, the construction of utility tunnels will encourage the use of the Public-Private Partnership (PPP) model to solve funding issues.

  To ensure reasonable and stable returns on projects, paid use of underground tunnels becomes necessary, and the government will impose certain mandatory requirements for pipelines to enter the tunnels.

  Existing old pipelines in cities will be gradually and orderly relocated to urban underground utility tunnels. For new pipelines within the service area of urban underground utility tunnels, if they are not placed in the tunnels, the planning department will not grant planning permission, the construction department will not grant construction permits, and the municipal road department will not grant excavation permits.

  According to estimates by relevant officials from the Provincial Development and Reform Commission, underground utility tunnel construction consists of the tunnel body and pipelines, with the tunnel body costing about 80 million yuan per kilometer and pipelines about 40 million yuan, totaling about 120 million yuan per kilometer.

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