• Ministry of Construction Issues Administrative Measures on Concession Arrangements for Municipal Public Utilities
  • June 30, 2004
  • Law Firm: Jones Day - Beijing Office
  • The Ministry of Construction ("MOC") recently issued the Administrative Measures on Concession Arrangements for Municipal Public Utilities ("the Concession Arrangements"), which guide local governments on how to promote concession arrangements for local public utility services in the water, natural gas, public transportation (including expressways, subway lines, light rail, and bus routes), and sewage and waste treatment industries. The Concession Arrangements do not prohibit foreign-invested enterprise ("FIE") involvement, but according to the Catalogue Guiding Foreign Investment in Industry, FIEs that provide public utility services must have majority Chinese ownership. The Concession Arrangements came into effect on May 1, 2004.