2021-10-24

Circular of the Ministry of Finance on Issuing the Operation Guideline for Performance Management of PPP Projects

(04-SEP-2020)


Circular of the Ministry of Finance on Issuing the Operation Guideline for Performance Management of PPP Projects

 

Cai Jin [2020] No.13

 

Financial departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan, and the finance bureau of Xinjiang Production and Construction Corps, Financial Supervision Commissioner Offices of the Ministry of Finance in all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan,

 

In order to regulate the full life cycle performance management of Public Private Partnership (PPP) projects, improve the quality and efficiency of public service supply and protect the legitimate rights and interests of all parties, we have formulated the Operation Guideline for Performance Management of PPP Projects, which are hereby issued to you for your compliance.

 

Attachment: Operation Guidelines for Performance Management of Public Private Partnership (PPP) Projects

 

Ministry of Finance of China

March, 16th, 2020


Attachment:

 

Operation Guideline for Performance Management of Public Private Partnership (PPP) Projects

 

 

Chapter I General Provisions

 

Article 1 In order to regulate the full life cycle performance management of Public Private Partnership (PPP) projects, improve the quality and efficiency of public service supply and protect the legitimate rights and interests of all parties, this Guideline have been formulated in accordance with some laws and regulations, including Budget Law of the People’s Republic of China, Opinions of the CPC Central Committee and the State Council on Comprehensively Implementing Budget Performance Management, and Circular of the General Office of the State Council on Guiding Opinions on Promoting the Public-Private Partnership Mode in the Public Service Fields issued by the Ministry of Finance, the Development and Reform Commission and the People’s Bank of China.

 

Article 2 Performance management of PPP projects refers to project management activities including the management of performance targets and indicators, performance monitoring, evaluation and result application carried out throughout the full life cycle of PPP projects. The operation guideline issued this time are applicable to all PPP projects, including government-pay projects, viability gap funding projects and user-pay projects.

 

Article 3 The implementing agency shall carry out performance management of PPP projects under the guidance of competent departments of the relevant sectors to which the project belongs, and may entrust a third party agency for assistant when necessary.

Financial departments at all levels shall be responsible for the construction of PPP project performance management system, business guidance, re-evaluation and post-evaluation.

 

Article 4 This Guideline is applicable to all PPP projects, including government-pay projects, viability gap funding projects and user-pay projects.

 

Article 5 All participants shall carry out the full life cycle performance management of PPP projects in accordance with the principles of scientific norms, openness and transparency, value for money, risk sharing, good faith performance and pay-for-performance.

 

 

Chapter II Performance Targets and Performance Indicators Management of PPP Projects

 

Article 6 The implementing agency of the project is responsible for preparing the performance targets and indicators of PPP projects, which will be submitted to the competent departments of the relevant sectors and financial department for review.

 

Article 7 Performance targets of PPP project include overall performance goals and annual performance goals. The overall performance goal is the expected output and effect of the PPP project throughout the full life cycle; the annual performance goal refers to the annual output and effect expected to be achieved in a specific year based on the overall performance targets and the actual situation of the project, which should be specific, measurable, and achievable.

 

The performance targets of PPP projects shall meet the following requirements:

 

i. Explicit orientation and instruction. Performance targets should conform to regional economic, social and industrial development plans, local financial revenue and expenditure, be result-oriented, reflect the public services to be provided by the project, and embody the concept of Environment, Social Responsibility, Corporate Governance (ESG).

ii. Be detailed and measurable. The performance targets should be set in detail in terms of output, effect and management, and be quantifiable as possible. If some of the targets are not applicable to be expressed in quantitative form, they should be qualitative, but measurable.

iii. Reasonable and feasible. Performance targets should be subject to investigation, research, and scientific demonstration, in line with the objective reality, and be achievable with foresight.

iv. Value for money. Performance targets should be in line with the concept of value for money and reflect the requirements of cost-effectiveness.

 

Article 8 The performance targets of PPP projects should include expected output, expected effect and project management.

 

Expected output refers to the quantity, quality and timeliness of public services provided by the project within a certain period.

 

The expected effect refers to the possible impact of the project on the economy, society, ecological environment, etc., the degree of realization of value for money, the capacity of sustainable development and the degree of satisfaction of all participants.

 

Project management refers to the management of the budget, supervision, organization, finance, system, archives, and information disclosure throughout the full life cycle of the project.

Article 9 PPP project performance indicators, as a tool to measure the degree of achievement of performance goals, should be set reasonably in accordance with the principles of systematicness, importance, relevance, comparability and economy, and in combination with the expected output, expected effect and project management.

 

Article 10 The PPP project performance indicator system consists of performance indicators, indicator interpretation, indicator weight, data source, evaluation standard and scoring method.

 

The indicator weight refers to the relative importance of the indicators in the evaluation system. The methods for determining indicator weights usually include Delphi Method, AHP (Analytic Hierarchy Process) method, PCA (Principal Component Analysis) method, entropy value method, etc.

 

Data source refers to the carrier or way to obtain reliable and real data or information during the evaluation of specific indicators. The methods of data acquisition usually include case studies, data collection and data filling and reporting, field research, symposiums, questionnaire surveys, etc.

 

The evaluation standard refers to the scale to measure the achievement degree of the performance goals. Performance evaluation standards include plan standards, industry standards, historical standards, or other standards confirmed by relevant competent departments.

 

The scoring method combines the indicator weight, measures the deviation degree between the actual performance value and the evaluation standard value, and assigns different scores to different grades.

 

Article 11 The management of PPP project performance targets and performance indicators at all stages should meet the following requirements:

i. In the preparation stage of PPP project, the project implementing agency shall, according to the project approval documents and historical data, and in combination with the features of PPP model, formulate the overall performance target and performance indicator system in the project implementation plan and fully solicit the opinions of relevant departments, potential social capital and other aspects. The financial department shall, in conjunction with the relevant competent departments, conduct an audit in terms of adequacy, rationality of target setting and guarantee degree of goal realization.

ii. In the procurement stage of PPP project, the project implementing agencies may make reasonable adjustments to the non-substantive contents of the performance indicator system based on the response of social capital response and the contract negotiation. The PPP project performance target and indicator system should be specified in the project contract.

iii. In principle, the performance target and indicator system shall not be adjusted in the implementation stage of PPP project. However, if the system does need to be adjusted due to changes in the contents of project, relevant policies, industry standards or unexpected events including emergencies and force majeure which affect the achievement of performance goals, the adjustment should be determined through negotiation between the project implementing agency and project company (the social capital when the project company is not established, similarly hereinafter), and should be submitted to the people’s government at the corresponding level for approval after being reviewed by the financial department and the relevant departments.

 

After the completion of the PPP project transfer, the financial department should work with the relevant departments, according to ( ), to compile the performance evaluation system (post-evaluation) in terms of the project output of full life cycle, cost-effectiveness, value-for-money realization, pay-for-performance implementation, impact on local financial affordability,  regulatory effectiveness, sustainability, and application of the PPP model.

 

Article 12 If the project company (or social capital) has any objection to the adjusted results of the performance target or indicator system, it may apply for convening the review meeting to review the scientificity, rationality and feasibility of the adjusted results. If both parties have no objection to the review opinions, the approval procedure shall be completed in accordance with the review opinions; If there is still any disagreement, the dispute shall be settled according to the dispute settlement mechanism stipulated in the contract.

 

Article 13 When compiling the annual expenditure budget of government-pay projects and viability gap funding PPP projects, the annual performance targets and indicators shall be submitted to the financial department together with the prepared budget declaration materials for examination and approval. The user-pay PPP projects shall be implemented by reference.

 

Chapter Ⅲ Performance Monitoring of PPP Projects

 

Article 14 The project implementing agencies shall carry out PPP project performance monitoring on a regular basis in accordance with the project contract, and the project company (or social capital) shall be responsible for daily performance monitoring.

 

Article 15 PPP project performance monitoring includes the tracking, monitoring and management of the daily operation of PPP project and the achievement degree of the annual performance targets. It usually includes the achievement degree of the targets, the guarantee measures of the targets, the deviation and rectification of the target, etc.

 

PPP project performance monitoring shall meet the following requirements:

i. Performance monitoring shall be carried out in strict accordance with state regulations, industry standards and project contracts, and abide by the principles of scientific standardization, truthfulness, objectivity and emphasis. Focus on the annual performance targets and indicators that best represent and reflect the project output and effect, objectively reflect the project operation and execution deviation, which will be conducive to deviation correction in time, and performance improvement.

ii. The project implementing agency should consider the performance evaluation and payment timing according to the characteristics of the PPP project, reasonably choose the monitoring time and set the monitoring plan. In principle, the performance monitoring should be carried out at least once a year.

 

Article 16 PPP project performance monitoring work is usually carried out in accordance with the following procedures:

i. Performance monitoring. The project company (social capital) shall carry out daily PPP project performance monitoring and submit the monitoring results on a regular basis according to the requirements of the project implementing agency. The project implementing agency should find the deviations in project performance operation in accordance with the monitoring targets, analyze the causes of the deviations, put forward methods for rectifying the deviations in combination with the actual situation of the project, and make records of the information.

ii. Feedback, correction and reporting. The project implementing agency should timely give feedback to the project company (social capital) and relevant departments pertaining the deviations discovered by the performance monitoring, and urge project company to correct the deviation; if the cause of the deviation involves the implementing agency itself, the agency should correct the deviation in a timely manner; if the deviation is relatively significant, “Performance Monitoring Report” should be complied and submitted to the relevant competent departments and financial departments.

 

Chapter Ⅳ Performance Evaluation of PPP Projects

 

Article 17 The project implementing agency shall, in accordance with the project contract, carry out PPP project performance evaluation in the implementation stage in combination with the annual performance target and indicator system.

 

The financial departments shall, together with relevant competent departments and project implementing agencies, carry out post-evaluation of PPP projects after the completion of project transfer.

 

Article 18 PPP project performance evaluation shall meet the following requirements:

i. Performance evaluation should be carried out in strict accordance with the prescribed procedures, follow the principles of truthfulness, objectivity, justice, with the method of quantitative and qualitative analysis.

ii. The timing of performance evaluation is determined according to the implementation schedule of PPP project and the need of pay-for-performance. In principle, the performance evaluation should be carried out in combination with the completion acceptance during the construction period of a project; for a phased project, the performance evaluation should be carried out in combination with the completion acceptance of each sub-project. During the operation period of the project, performance evaluation should be carried out at least once a year, and a mid-term evaluation of the project should be carried out every 3-5 years based on the annual performance evaluation. A post-evaluation shall be conducted after the transfer of project.

iii. The results of performance evaluation are publicized and supervised in accordance with laws and regulations.

 

Article 19 PPP project performance evaluation is usually carried out according to the following procedures:

 

i. Issue performance evaluation notice. The project implementing agency shall inform the project company (social capital) and relevant departments to prepare and cooperate in performance evaluation work at least 5 working days in advance after determining the time.

ii. Develop a work plan for performance evaluation. The project implementing agency shall, according to the policy requirements and the actual situation of the project, prepare the performance evaluation work plan, which usually includes the basic situation of the project, performance target and indicator system, evaluation purpose and basis, evaluation object and scope, evaluation method, organization and implementation plan, data collection and investigation, etc. The project implementation organization shall organize experts to review the performance evaluation work plan during the construction period, the first operation period and after the project transfer.

iii. Organize and implement performance evaluation. The project implementing  agency should make an objective and fair evaluation of the PPP project performance according to the performance evaluation work plan. Through comprehensive analysis and opinion consultation, distinguish the responsible subjects and form an objective, fair and comprehensive performance evaluation results. The performance deviation not caused by project company or social capital should not affect the evaluation results of the project company (social capital).

iv. Prepare performance evaluation report. The PPP project performance evaluation report shall be fact-based, true and complete with accurate data, and objective. It should include the basic information of the project, performance evaluation work, evaluation conclusions and performance analysis, analysis of existing problems and causes, relevant suggestions and other problems that need to be explained.

v. Document archiving. The project implementing agency shall file all valid data collected during the performance evaluation process, including the performance evaluation work plan, expert opinions and suggestions, field research and symposium records, questionnaires, performance evaluation reports, etc., and properly manage them in accordance with relevant archives management regulations.

vi. Evaluation result feedback. The project implementing agency shall promptly feedback the performance evaluation results to the project company (social capital) and relevant departments.

 

Article 20 If the project company has any objection to the performance evaluation result, it shall clearly put forward with valid supporting materials within 5 working days to explain to the project implementing agency and reach a consensus; if no agreement can be reached, a review meeting shall be organized; if both parties have no objection to the review opinion, the final evaluation result shall be determined according to the review opinion. If there is still any disagreement, the dispute shall be settled according to the dispute settlement mechanism stipulated in the contract.

 

Article 21 The implementing agency of the project shall submit the PPP project performance evaluation report to the relevant competent departments and financial departments for review, focusing on whether the performance evaluation work plan is carried out, whether the quoted data is true and reasonable, whether the problems revealed are objective and fair, and whether the proposed improvement measures are targeted and feasible, etc.

 

Article 22 The performance evaluation results of PPP projects are an important basis for pay-for-performance, rectification, supervision and accountability.

 

i. Pay-for-performance. For government-pay projects and viability gap funding projects, the annual operating subsidy expenditure borne by the government should be fully correlated with the performance evaluation results of the project company (social capital) in the current year. The financial department shall arrange corresponding expenditures in accordance with the results of the performance evaluation, and the project implementing agency shall make timely payment in accordance with the project contract.

 

For user-pay projects, the project revenue of the project company (social capital) should be correlated with the performance evaluation results of the project company (social capital) in the current year. If the performance evaluation results are superior to the agreed standards, the project implementing agency shall enforce the incentive clauses agreed in the project contract. If the performance evaluation results fail to meet the agreed standards, the implementing agency shall enforce the default clauses agreed in the project contract, which may be achieved by setting liquidated damages affecting the project revenue, project extension restrictions or affecting price adjustment mechanism.

 

The result of performance evaluation can be used as a factor to consider whether to renew the project contract.

 

ii. Rectification. The project implementing agency shall organize the rectification work based on the problems uncovered during the performance evaluation process, and report the rectification results to the relevant competent departments and financial departments. If the problems are associated with itself, the project implementing agency should promptly rectify; if it involves the project company (social capital) or other related departments, the project implementing agency should promptly supervise the rectification.

iii. Supervision and accountability. The project implementing agency shall disclose the results of performance evaluation in a timely manner and accept social supervision; the performance evaluation results of project implementing agency should be included in the scope of work assessment.

 

 

Chapter V Organizational Guarantee

 

Article 23 Financial departments at all levels shall work with relevant departments to set up a sound PPP project performance management system and a common indicator framework, enhance the operational guidance pertaining to project identification demonstration, government procurement, budgetary revenues and expenditures, performance management and information disclosure, earnestly carry out review of project compliance, so as to ensure the standardized project implementation and high efficient operation in the whole life cycle.

Financial departments at all levels shall, in line with the requirements of budget performance management, carefully examine the budget application for fiscal revenue and expenditure of PPP projects and the performance target and indicator system, fully consider the financial affordability of the corresponding level, make reasonable arrangements for the fiscal budget, and strengthen the supervision over the compliance and effectiveness of the use of funds.

 

Financial departments at all levels may select major PPP projects to carry out performance re-evaluation in combination with their annual work priorities.

 

Article 24 Competent departments of sectors at all levels shall, in accordance with the requirements of performance management system, establish and improve the core performance indicator system of their own sector and field, and clarify performance standards; perform the procedures including budget preparation, report and implementation in full compliance with the rules; strengthen coordination with finance and other related departments.

 

Article 25 The project implementing agency and the project company (social capital) shall strictly fulfill the contractual agreement to ensure that all work is legal and compliant.

The project implementing agency shall get done the specific work of PPP project performance management well, and be responsible for the standardization of PPP project implementation, compliance and effectiveness of the use of fiscal funds.

 

The project company (social capital) shall carry out daily management and information recording of the project investment, construction, operation, maintenance, handover, etc.; actively cooperate in the PPP project performance management, and be responsible for the authenticity, integrity and effectiveness of the data and information provided.

 

Article 26 Financial departments at all levels shall work with relevant competent departments to strengthen the information management of PPP projects based on the PPP integrated information platform. The project implementing agency and the project company (social capital) shall, according to the actual progress of the project, timely provide and update the information of PPP project performance management, disclose information and accept the social supervision.


Chapter VI Supplementary Provisions

 

Article 27 This Guideline shall come into force 30 days after the date of issuance.

 

For projects that have issued bid-winning notice before the implementation of this Guideline, the procedures of performance monitoring and performance evaluation shall be carried out in accordance with the provisions of procurement documents or project contracts, such as performance evaluation indicators and application of results. If the performance target and indicator system is not perfect, it can be supplemented and improved by referring to this Guideline.


Appendices:

1. Map of Full Life Cycle Performance Management of A PPP Project

2. Work Plan of PPP Project Performance Evaluation (for reference)

3. Report of PPP Project Performance Evaluation (for reference)

4. Common Indicator Framework of PPP Project Performance Evaluation during Construction Period (reference)

5. Common Indicator Framework of PPP Project Performance Evaluation in Operation Period (reference)


Appendix 1

 

Map of Full Life Cycle Performance Management of A PPP Project

 

Stages

Government at the corresponding level

Other relevant departments

Financial departments

Relevant competent departments

Implementing Agency

Project company/

Social capital

Preparation

Approve the project implementation plan

(including performance targets and indicators)


 

Examine the performance target and indicator system

Formulate the overall performance target and indicator system and solicit opinions from relevant parties

Put forward reasonable Suggestions to the performance indicator system.

Procurement

Approved project contracts (including performance targets and indicators)




Improve the performance indicator system and specify performance targets and indicators in the contract

Implementation

Approval


Review the adjusted performance target and indicator system

The performance target and indicator system that need to be adjusted shall be determined by both parties through negotiation

Conduct performance monitoring

Give feedback, rectify and report

Conduct daily performance monitoring


Review the performance evaluation report

Issue performance evaluation notice

Develop a work plan for performance evaluation

Organize and implement performance evaluation

Prepare performance evaluation report

Document archiving

Evaluation result feedback

Actively cooperate in the evaluation work

Result application (pay-for-performance, rectification, supervision and accountability)

Transfer completed


Post-evaluation


 


Appendix 2

 

Work Plan of PPP Project Performance Evaluation (for reference)

 

 

Work Plan of PPP Project Performance Evaluation

(for reference)

 

I. Basic Information of the Project

1. Overview of the project

2. Description of project output

3. Performance target and indicator system

The performance target and indicator system, annual performance target and indicator system agreed in PPP project contract, along with related adjustments.

4. Main participants of the project

Clarify the responsibilities and participation of the main participants of the project, which usually include the project company (social capital), the project implementing agency, the relevant competent departments and other relevant governmental departments, the project service objects, the public and other relevant parties.

5. Project implementation

Project implementation progress, and the adjustments and changes in the contents of the project.

II. Methods of Performance Evaluation

1. The purpose and basis of performance evaluation

Determine the basic orientation of the evaluation work and define the goals and results of the performance evaluation.

Evaluation basis usually includes PPP project contracts, laws, regulations and rules related to the project, relevant industry standards and professional technical norms, etc.

2. The object and scope of performance evaluation

The evaluation object is the PPP project, and the evaluation scope includes project output, project implementation effect and project management, etc.

3. Performance evaluation period

The time range of the project to be evaluated this time, in which the specific start and end point should be clarified.

4. Methods of performance evaluation

Clarify the relevant evaluation methods for performance evaluation and the reasons.

III.  Organization and Implementation of Performance Evaluation

1. Define the responsibilities and work division the project leader and the team.

2. Make clear the timing and work plans of each part.

3. Determine the quality control measures for performance evaluation.

IV. Data Collection and Investigation

Clarify the data collection and investigation plan required to carry out the performance evaluation work, including the content and methods of data collection, data sources, and specific investigation methods.

Investigation methods usually include case study, field investigations, symposiums and questionnaire surveys, etc. The object, method, content, time and location of the investigation should be as clear as possible. If the survey object involves sampling, the overall situation of the survey object, the total number of samples, the sampling method and the sampling ratio should be elaborated.

V. Related Appendix

It usually includes list of materials, information filling and reporting format, interview outline and questionnaire, etc.

 


Appendix 3

 

Report of PPP Project Performance Evaluation (for reference)

 

 

Report of PPP Project Performance Evaluation

(for reference)

 

I. Basic Information of the Project

1. Overview of the project

Briefly describe the background of the project, basic arrangement of PPP mode, including basic information, operation mode, return mechanism, transaction structure, etc.

2. Performance targets of the project

3. Main participants of the project

4. Project Implementation

Include the specific content, scope, plan and progress of the project implementation. If there is any change in the content of the project during the implementation, the content, basis and procedure of the change shall be elaborated.

5. Source and utilization of funds

Include source and use of project funds, investment and financing management, financial management, budget, etc.

II. Performance Evaluation Work

1. The purpose of performance evaluation

2. The object, scope and period of performance evaluation

3. The formulation process of the work plan of performance evaluation

4. Principles and methods of performance evaluation

5. The implementation process of performance evaluation

6. Data collection methods

7. Limitations of performance evaluation (if any)

III. Evaluation Conclusions and Performance Analysis

1. Evaluation conclusions

2. Performance Analysis

Analyze and evaluate the key indicators pertaining to project output, effect and management.

In the analysis and evaluation of performance indicators, it is necessary to make full use of the data collected in the evaluation to achieve a combination of quantitative analysis and qualitative analysis. The performance indicator scoring shall be based on sufficient and reasonable usage to ensure the fairness, objectivity, and rationality of the evaluation results.

IV. Analysis of Existing Problems and Causes

By analyzing the evaluation results of each indicator, the deficiencies of the projects and their causes are summarized, and the responsibility subject is clarified to lay a foundation for relevant suggestions.

V. Relevant Suggestions

Through comprehensive interpretation of the evaluation results of various indicators, targeted improvement measures and suggestions are proposed for the deficiencies of the projects. The measures or recommendations should be feasible, forward-looking and scientific, which is helpful to promote and improve the performance of the projects.

VI. Limitations on the Use of Performance Evaluation Reports and Other Issues That Need to be Explained

VII. Signature of Evaluation Subject

The performance evaluation report shall be with the official seal of the evaluation subject.

 

VIII. Related Appendixes

Includes the main evaluation basis, relevant data of field investigations and symposiums, collected information of questionnaires and other relevant data that support the evaluation conclusion.

 


Appendix 4

 

Common Indicator Framework of PPP Project Performance Evaluation during Construction Period (reference)

 


Indicators of Grade Ⅰ

Indicators of Grade Ⅱ

Interpretation of Indicators

Performance Evaluation of Project Company (Social Capital) (100 points)

Output

Completion acceptance

Evaluate whether the project has passed the completion acceptance and the details of completion acceptance.

Effect

Social impact

Evaluate the direct or indirect positive and negative impacts of project construction activities on social development, in terms of job creation, social honor, major litigation, public opinion and mass incidents.

Ecological impact

Evaluate the direct or indirect positive and negative impacts on the ecological environment during the project construction period, in terms of energy conservation, emission reduction, and environmental penalties.

Sustainability

Evaluate whether the project company or social capital has done a good job in the preparation for project operation, such as resource allocation, potential risk addressing, communication and coordination mechanism, etc.

Satisfaction

The satisfaction degree of relevant government departments, project implementation agencies, and the public (service objects) to the related work of the project company or social capital in construction period.

Management

Organization management

Evaluate whether the organization structure of the project company is sound, whether the personnel allocation is reasonable, and whether it can meet the daily operation requirements of the project.

Fund management

Evaluate the availability and timeliness of the project capital of social capital and financing funds of project company.

File management

Evaluate the completeness, authenticity and timeliness of collection and sorting of relevant materials for project construction.

Information disclosure

Evaluate the timeliness and accuracy of the project company or social capital's performance of information disclosure obligations.

Performance Evaluation of Implementing Agency

 (100 points)

Output

Contract execution

Evaluate whether the project implementing agency fulfills the obligations stipulated in the PPP project contract in a timely and effective manner.

Cost control

Evaluate the recognition of the cost supervision and control responsibilities of the project implementing agency. (Note: This indicator does not applicable to the PPP projects with fixed total price for construction costs in the contract).

Effect

Satisfaction

The satisfaction degree of the public, the project company or the social capital to the work of the project implementing agency.

Sustainability

Evaluate whether the project implementing agency has established effective work guarantee mechanism and communication coordination mechanism for project sustainability.

Management

Preliminary work

Evaluate the pre-project procedures and the implementation of various tasks undertaken by the project implementing agency.

Fund(capital)management

Evaluate the disbursement rate and timeliness of the equity investment and supporting investment of the project implementing agency.

Supervision management

Evaluate whether the project implementing agency performs its supervision and management duties in accordance with the PPP project contract, such as quality supervision, financial supervision, and daily management.

Information disclosure

Evaluate whether the project implementing agency discloses information in a timely and accurate manner in accordance with relevant requirements for information disclosure.

Note: The second-level indicators should be appropriately adjusted and broken down as third-level indicators according to the characteristics of the project industry and actual conditions.


Appendix 5

 

Common Indicator Framework of PPP Project Performance Evaluation in Operation Period (reference)

 

 


Indicators of Grade Ⅰ

Indicators of Grade Ⅱ

Interpretation of Indicators

Note

Performance Evaluation of Project Company (Social Capital) (100 points)

Output

Operation

Evaluate the completion of the project operation in terms of quantity, quality and timeliness, such as completion rate, compliance rate and timeliness.

1. "Output" should be regarded as the core indicator for pay-for-performance, and the weight should not be less than 80% of the total weight, while " operation" and " maintenance" indicators should not be less than 60% of the total weight;
2. In principle, full payment can be made only when the point is no less than 80.

Maintenance

Evaluate the maintenance of project facilities and equipment and related assets, in terms of quantity, quality and timeliness, such as maintenance frequency, perfectness of the equipment and promptness of the maintenance.

Cost-effectiveness

Evaluate the cost of project operation and maintenance, including the rationality of cost structure, the comparison of actual cost and proposed cost, cost saving rate, input-output ratio, etc. (Note: This indicator is applicable for the project whose operation and maintenance cost control is not stipulated in the PPP contract)

Safety guarantee

Evaluate the safety and security of the project company (or social capital) in the process of providing public services, such as major accident rate, safety productivity, emergency response, etc.

Effect

Economic impact

Evaluate the direct or indirect positive and negative impacts of project implementation on economic development, such as the industrial drive and regional economic impact.

Ecological impact

Evaluate the direct or indirect positive and negative impacts of project implementation on ecological environment, such as energy conservation, emission reduction, environmental penalties.

Social impact

Evaluate the direct or indirect positive and negative impacts of project implementation on social development, such as new employment, social honor, major litigation, public opinion and mass incidents.

Sustainability

Evaluate the sustainability of the project in terms of development, operation management and financial status.

Satisfaction

The satisfaction degree of relevant government departments, project implementing agencies, and the public (service objects) with the quality and efficiency of public services provided by the project company or social capital.

Management

Organization management

Evaluate the implementation of project operation management and organizational guarantee, such as organizational structure, personnel management and decision-making and approval process.

Financial management

Evaluate the compliance of project fund management, accounting and other aspects in financial management.

Mechanism management

Evaluate the degree of perfection and implementation efficiency of internal control system.

File management

Evaluate the integrity, authenticity and timeliness of collection and sorting of project information related to operation, maintenance.

Information disclosure

Evaluate the timeliness and accuracy of the project company or social capital's performance of information disclosure obligations.

Performance Evaluation of Implementing Agency

 (100 points)

Output

Pay-for-performance

Evaluate whether the project implementing agency performs the obligation of pay-for-performance timely and in full accordance with the PPP project contract.

 

 

 

"Value-for-money" indicators can be carried out on a regular basis in conjunction with the mid-term evaluation.

Others

Evaluate whether the project implementing agency performs other obligations stipulated in the PPP project contract in a timely and effective manner.

Effect

Satisfaction

The satisfaction degree of the public, the project company or the social capital to the work of the project implementing agency.

Sustainability

Evaluate whether the project implementing agency has established effective job security and communication coordination mechanisms for project sustainability.

Value-for-money

Evaluate the realization of value-for-money.

Management

Budgeting

Evaluate whether the project implementing agency accurately incorporates the PPP project expenditure responsibility into the annual budget in a timely manner.

Performance targets and indicators

Evaluate whether the project implementing agency prepares reasonable and clear annual performance targets and indicators.

Supervision management

Evaluate whether the project i implementing agency performs supervision and management duties as agreed in PPP project contract, including quality supervision, financial supervision and daily management.

Information disclosure

Evaluate whether the project implementing agency discloses information in a timely and accurate manner in accordance with relevant requirements for information disclosure.

Note: The second-level indicators should be appropriately adjusted and broken down as third-level indicators according to the characteristics of the project industry and actual conditions.



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