Two PPP consulting projects of the equipment Jiangsu Complete Equipment Co., Ltd., Nanjing Metro Line 5 and Chengdong New District of Xiangshui County, were successfully implemented

  Recently, two PPP consulting projects implemented by the Equipment Jiangsu Complete Equipment Co., Ltd., Nanjing Metro Line 5 and Chengdong New District of Xiangshui County, were successfully implemented.
  The Nanjing Metro Line 5 project was launched on August 18, 2015. It adopts the operation method of "project investment and financing + construction + operation + handover." The Nanjing City Development and Reform Commission and the Nanjing City Underground Railway Engineering Construction Headquarters serve as the government parties, and selects and determines the social capital party through public bidding. Nanjing Metro Group and the social capital party that won the bid jointly funded the establishment of the project company. The government granted the franchise rights to the project company on behalf of the municipal government and signed a franchise agreement with the project company. The project company is responsible for the investment, financing, construction, operation management and maintenance of the Line 5 project. The project was awarded on July 12, 2016, and the winning bid announcement was released on September 8, with a winning bid amount of 19.6 billion yuan.
  The Chengdong New Zone project in Xiangshui County has a total investment of 3.3 billion yuan and was launched on December 31, 2015. It adopts the operating methods of "investment and financing + construction + operation + transfer" and "investment and financing + construction + ownership + operation + transfer". The Office of the State-owned Assets Management Committee of the People's Government of Xiangshui County is the project implementation agency. The government selects and determines the social capital party through public bidding. Xiangshui County Urban Assets Investment Co., Ltd. and/or Xiangshui County Guanjiang New City Construction and Development Co., Ltd. jointly funded and established the project company on behalf of the government and social capital parties. The project implementation agency signed the "PPP Project Contract" with the project company on behalf of the People's Government of Xiangshui County, granting it the franchise rights to invest, invest, construct, operate, manage and maintain the project during the cooperation period and obtain reasonable income. The project cooperation period is 13 years, including the construction period of 3 years. The project issued a pre-qualification announcement on May 10, 2016, the procurement documents were released on August 4, and the transaction results announcement was released on September 8. Project transaction price: The downward floating rate of the budget price of construction projects is 0.5%; the downward floating rate of the budget price of municipal projects is 1%, and the annualized comprehensive return rate of all investment is 8.2%.
  The smooth implementation of the above two projects has further accumulated practical experience in PPP project consulting for the company.