The National People's Congress Motion of Chairman Du Bo Has Got the Legislative Proposals to the NPC Standing Committee
October 24, 2011, Twenty-Third Session of the Eleventh National People's Congress held in Beijing. Chairman Du Bo of Haide Capital Investment (Shanghai) Co., Ltd, attended the meeting as a special representative. NPC Financial and Economic Committee made a report to the Standing Committee, as "motion on the deliberations of the behalves’ proposals". A separate special report was made to response the report “Project Financing Law Legislation Motion” which was proposed by chairman Du on the Fourth Session of the Eleventh National People's Congress in March 2011. The National Development and Reform Commission, promised to take further research, and put out the legislative proposals in time.
Chairman Du pointed out in the " Project Financing Law Legislation Motion", that local government currently widely used BOT, BT, ABS and other project financing as a solution to the shortage of funds for construction of measures, but there were lack of appropriate laws to regulate the processes. The project construction process revealed a number of problems, such as the unclear financing channels, corporate credit standards, the inappropriate choice of financing, project supervision inadequate. So as to the "Project Financing Law" was recommended, to reduce the risk of local financing platform, and improve the project financing system.
The motion became the section 480 motion of Fourth Session of the Eleventh National People's Congress. National Development and Reform Commission attaches great importance on the ongoing infrastructure franchising legislation, and will take further research of the issue of project financing, proceeding the legislative proposals in due course.
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