THE AGREEMENT ON DEVELOPING THE PIPELINE GAS PROJECT IN XINTANG COUNTRY
THE AGREEMENT
ON
DEVELOPING
THE PIPELINE GAS PROJECT IN XINTANG COUNTRY
Contract
SN:
Signatory
Location:
Party
A: Planning
Department of Xingtang Country
Party
B: Beijing
Zhong Ran Wei Ye Gas Co., Ltd.
WHEREAS,
(i) to accelerate developing public utilities and improve the living conditions
of citizens, (ii) based on the natural gas safety rules of Xingtang and other
relevant applicable laws and regulations, and (ii) after field study and
friendly consultations, the Parties hereby agree as follows (the “Agreement”).
| 1. |
The
Project
|
| 1.1 |
Name
of the Project: The Project of Supplying Natural Gas in Xingtang
Country
|
| 1.2 |
Purpose
of the Project: constructing a gas station, main pipelines, an urban
pipeline network, and inner pipeline networks for some public building
owners, industrial customers and 6,000 households in Xingtang (To
achieve
the purpose of the Project as soon as possible, the first stage of
the
Project to supply for 1,000 households shall be conducted with
CNG.)
|
| 1.3 |
Investment
of the Project: total investment of ▇▇▇ ▇▇ million for the Project
with
around ▇▇▇ ▇▇ million for the first
stage.
|
| 1.4 |
Cycle
of the Project: The first stage of the Project will be completed
with a
normal gas supply capacity at the end of June in 2006. The subsequent
stages will be implemented in accordance with the urban planning
of the
local government, and the purpose of the Project shall be achieved
in
three years.
|
| 1.5 |
Gas
price and Installation Fee
|
| 1.5.1 |
For
residential customers, the initial installation fee (including IC
gas
appliance and natural gas stove) for a household shall be RMB 2,200/unit.
|
| 1.5.2 |
For
other customers (including plants, restaurants, hotels, governments,
armies, hospitals, schools etc), the initial installation fee shall
be RMB
500/day.
|
| 1.5.3 |
The
gas price shall be RMB 2.4 per cubic meter. (Interim)
|
| 1.5.4 |
The
gas price shall not be changed unless the PRC Government formulates
policies to adjust the gas price.
|
| 2. |
Obligations
of the Parties
|
| 2.1 |
Obligations
of Party A
|
| 2.1.1 |
to
grant Party B the exclusive right to invest, construct and operate
the
Project;
|
| 2.1.2 |
to
make the land to construct the natural gas station be available at
a
favourable price due to its advantage of monopolizing primary land
market;
|
| 2.1.3 |
to
provide the accurate and feasible municipal planning to design a
more
reasonable pipeline network;
|
| 2.1.4 |
to
organize a group made up of people from different departments
(the
Group)
to assist Party B in obtaining approved documents related to the
Project
and authorization for temporary land occupation during the construction;
to propose preferable policies about reducing compensation for land
and
other administration fees;
|
| 2.1.5 |
to
publish advisory documents on employers’ subsidizing initial residential
installation fee for their staff;
|
| 2.1.6 |
all
the gas connection projects to be constructed or under construction
shall
be started after acquiring permission of the Group and signing of
the gas
supply contracts between customers and Party
B.
|
| 2.1.7 |
to
make a plan of replacing coal and other harmful energy resources
by
gas.
|
| 2.2 |
Obligations
of Party B
|
| 2.2.1 |
contriving
the scheme of the Project and implementing in stages in accordance
with
the urban planning of Xingtang Country;
|
| 2.2.2 |
raising
funds for the Project; project design and
construction;
|
| 2.2.3 |
implementing
the fee-related provisions in this Agreement; not changing the price
without authorization;
|
| 2.2.4 |
ensuring
the continuous and safe gas supply during the operation except in
the case
of force majeure, examination and
repair;
|
2
| 2.2.5 |
operating
and managing in accordance with the PRC laws, regulations and relevant
rules; allowing supervision and inspection of the
Group.
|
| 3. |
Miscellaneous
Provisions
|
| 3.1 |
The
Parties may negotiate and execute documents to supplement this Agreement.
Such supplemental agreements shall have the same force and effect
as this
Agreement.
|
| 3.2 |
There
are four originals of this agreement. Each party holds two
originals.
|
| 3.3 |
This
Agreement and any of its supplemental agreements shall not be binding
upon
any Party unless signed and sealed by the
Parties.
|
| Party A (Seal): Sealed | Party B (Seal): Sealed | |
| Representative (Signature): Signed | Representative (Signature): Signed | |
| Date: August 27, 2003 | Date: August 27, 2003 |
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