With the cancellation of limitation in investment, construction and management of urban sewage treatment plants and pipe network, relevant sewage treatment facility management department has invited multiple forms of subjects of investment and conducted corresponding reform of urban sewage treatment management system: 1. Transfer-Operate-Transfer (TOT mode): In order to stimulate capital circulation or pay off debts for construction, the government completely transfers existing sewage treatment plant to a new investment/water company and grants it a franchise with a certain time limit, allowing it to operate and maintain sewage treatment facilities and deal with a certain amount of investment; local government obtains a corresponding amount of cash, meanwhile, it promises to pay the investor and elevate sewage treatment expense including cost and investment return. 2. Transfer of management right in the form of joint venture and cooperation: the water company contributes in the form of cash, local sewage treatment/discharge company contributes in the form of a part of asset of existing plant, and both parties (or all parties) jointly establish a new joint-stock water company responsible for the operation of the plant. The government obtains cash from the water company and signs a franchise agreement with the new company, and the shareholders of both parties operate the plant collaboratively. 3. Invite investment and transfer existing plant by TOT mode, and built a new plant based on BOT mode. 4. Transfer the franchise of existing plant, and conduct establishment and operation of the new plant based on the investment invited and BOT mode.

TOT Mode