17-05-2013, 10:37 PM
Tollway firms may get OK to collect longer
http://www.china.org.cn/china/2013-05/09...771255.htm [Article]
The full article in the URL link includes the public outcry over this proposed move to extend the concession and more details on the loss of income suffered by toll road operators since this move was implemented. Nothing is set in stone - if the Government do approve the extension of the concession lifespan of the toll roads owned by CM Pacific - it will be a small but positive catalyst. However, this may also curb excessive profit making since the IRR is fixed.
(Vested)
Quote:Tollway operators who have been financially affected by the government's toll-free policy may be allowed to extend their collection periods, according to a draft amendment to the country's tollway management regulation.
"(Highway) operators whose legal revenue is impacted by the toll-free policy can be compensated by properly extending their period of toll collection," the Ministry of Transport said in a draft amendment to the regulation, which took effect in November 2004.
The ministry on Wednesday began soliciting opinions from the public on the draft and has published the amendments on its website. The solicitation will end on June 7.
According to the tollway regulation, the time for non-government-invested highways to collect tolls should not exceed 25 years. Those in central and western regions, which are usually economically underdeveloped, are allowed to extend the period to 30 years.
The amendments also stipulate that investors in highways must sign a franchise agreement with local transport authorities and write down a "reasonable" rate of return in the agreement.
The revenue, expenditures and maintenance information of tollways must be made public for scrutiny, the draft said.
http://www.china.org.cn/china/2013-05/09...771255.htm [Article]
The full article in the URL link includes the public outcry over this proposed move to extend the concession and more details on the loss of income suffered by toll road operators since this move was implemented. Nothing is set in stone - if the Government do approve the extension of the concession lifespan of the toll roads owned by CM Pacific - it will be a small but positive catalyst. However, this may also curb excessive profit making since the IRR is fixed.
(Vested)