Underground Utility Tunnel to Be Built in Northern Section of Cuicheng Road; PPP Project Included in Municipal Fiscal Budget

2016-11-02 823 0人评论
  The reporter learned from the 41st meeting of the 14th Standing Committee of the Municipal People's Congress held on the 31st that an underground utility tunnel will be built in the northern section of Cuicheng Road in Cuiheng New Area. Hu Jingge, director of the Finance and Economic Work Committee of the Municipal People's Congress Standing Committee, introduced that the PPP project for the underground utility tunnel and synchronized construction works in the northern section of Cuicheng Road in Cuiheng New Area has a total investment of about 3.2 billion yuan, including 6.6 kilometers of roads and 8.9 kilometers of utility tunnels, and the project is planned to be advanced under the PPP model.
  The meeting heard and deliberated the "Report on Requesting Deliberation on Including Government Fiscal Expenditure for the PPP Project of the Underground Utility Tunnel and Synchronized Construction Works in the Northern Section of Cuicheng Road in the Municipal Fiscal Budget" and the preliminary review report of the Finance and Economic Work Committee of the MunicipalPeople's Congress Standing Committee. According to the two reports, the project is planned to have a construction period of 3 years (2017——2019) and an operation period of 18 years (2020—2037). The total fiscal expenditure for the 21-year PPP cycle of the project is about 5.64 billion yuan, including construction and installation costs, project contingency costs, operation and maintenance costs, and returns to social investors, etc. The investment amount is actually borne by Cuiheng New Area.
  
Hu Jingge stated that Cuiheng New Area is a major platform for Zhongshan's long-term future development and is currently in its initial stage. The construction of the underground utility tunnel and synchronized construction works in the northern section of Cuicheng Road plays an important role in improving the investment and living environment, enhancing the city's comprehensive carrying capacity, improving urban operational efficiency, and steadily advancing new urbanization. He also suggested that the fiscal department establish a medium- and long-term budget mechanism to ensure fiscal expenditure responsibilities, effectively prevent and control fiscal risks, strictly execute contracts, promptly handle payment procedures, effectively maintain local government credit, and ensure the effective supply of public services.
  According to the provisions of the Ministry of Finance documents, the annual expenditure on PPP projects as a proportion of general public budget expenditure shall not exceed 10%. He Zhenzhang, deputy mayor of Zhongshan Municipal People's Government, stated that Cuiheng New Area currently has limited fiscal capacity, and therefore applied to include the government fiscal expenditure for the PPP project of the underground utility tunnel and synchronized construction works in the northern section of Cuicheng Road in the municipal fiscal budget, but the expenditures involved at the municipal level are still to be coordinated and repaid by Cuiheng New Area.

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