English Translation) Da Shi Qiao Gas Pipeline Construction Project Investment Agreement
EXHIBIT
10.2
(English
Translation)
Da
Shi Qiao Gas Pipeline Construction Project
Between:
Party
A:
Da Shi Qiao Urban and Rural construction Bureau
Party
B:
TianJin Singocean Gas Co Ltd.,
Project
Name:
Da
Shi
Qiao Gas Pipeline Project
Project
Detail:
Party
B
will invest in gas pipeline extension project in Da Shi Qiao Urban area in
order
to replace current bottled LNG. Party B will supply gas for residents. Party
B
also supply gas to industry and public facilities if possible.
Resources
of Gas:
CNG
in
the near future and Natural gas or mixed gas in long term. Thermal value of
gas
should be 9000-12000kc/m3.
Project
Investment、scale
and construction phase:
| 1 、 |
Total
investment (RMB): 100 million
|
| 2 、 |
Scale:
|
| 1st phase: 3,000 users |
| 2nd phase: 15,000 users |
| 3rd phase: 22,000 users |
| 3 、 | Construction phase: |
| 1st phase: from September to December 2003 |
| 2nd phase: from January to December 0000 |
| 0xx xxxxx: from January to December 2005 |
Party
A’s Responsibility
| 1 、 |
Party
A will work with local government for undertaking the project from
ex-investor to current investor. The take over is based on that the
previously construction is completed in accordance with project design
requirement.
|
| 2 、 |
Party
A will be in charge of verification on the previously completed
construction.
|
| 3 、 |
The
project design and construction plan of Party B will put in practice
only
after getting the approval from Party A
|
| 4 、 |
Party
A claim that all residential projects on new construction、reconstruction
and continuous construction include in the installation of gas pipeline
project. The gas pipeline installation fee will account into the
costs of
construction, without it the project will not be designed、approved
and examined.
|
| 5 、 |
Party
A will not program and give approval to any gas pipeline projects
if Party
B can fulfill the gas supply to end users in the urban
area.
|
| 6 、 |
The
active supporting policy to Party B can be compared to ex-investors
and
the government will renew the files to
confirm.
|
Party
B’s Responsibility
| 1 、 |
Party
B will and establish and register a subsidiary company, the company
will
be in charge of the construction of the project、management
and the collection of connection fee. The company will operate
independently and take its own responsibility of profits and
losses.
|
|
|
| 2 、 |
Party
B agree to takeover the auditing process of previous project
and continue
to complete the unfinished gas pipeline project in Da Shi
Qiao. Party B
will accept the takeover principles and means between Party
A and Party
B.
|
|
|
| 3 、 |
The
project construction need go along with the city programming
and design
scheme and project design documents by ShenYang Gas
Design institute of
Construction Ministry.
|
|
|
| 4 、 |
Party
B will insure the completion of the gas factory、main
gas pipeline and part of branch pipeline. Party
B also insure gas
connection to end user even the number of users
less than 3,000. Party B
will ensure to transfer 25 million RMB to assigned
bank account within 15
days after the execution of this agreement for
construction of gas
pipeline (12 million RMB for purchase the previous
project and 13 million
RMB for the construction fee of the first
phase).
|
|
|
| 5 、 |
In
order to guarantee the project quality, the
purchase of equipment and
materials will be in accordance with the requirement
of design and
national standard and the project will be restrictedly
comply the standard
of ISO9001:2000.
|
|
|
| 6 、 |
For
the safety purpose, Party B will install
necessary equipments. The gas
price will be approved by the Da Shi Qiao
price
bureau.
|
| 7 、 |
Party
B promise:
|
| (1) |
Gas
supply will take low profit policy and the
gas price will lower than other
cities nearby.
|
| (2) | The connection fee will be collected in once two months after the use of gas by the end users. |
| (3) |
If
the gas pipeline will connect with natural
gas pipeline, Party B will be
responsible for all costs and the users will
not repay any connection
fee.
|
| (4) |
The
connection fee by each user will be transferable
with its
property.
|
Gas
price and the collection of connection fee
| 1 、 |
The
gas sale price will take the low price principle and follow the
market
price. According to the feasibility study, the gas price will not
higher
than 3.4 yuan/m3 for the residents and 3.6 yuan/m3 for the public
facility. The gas price will be approved by the Da Shi Qiao price
Bureau.
|
| 2 、 |
The
connection fee of each user will not be higher than 2600 yuan (exclude
alarm equipment and IC card). The connection fee of non-resident
users
will depend on the gas consumption, the standard will not be higher
than
5100--10000 yuan/10kc.
|
| 3 、 |
The
construction fee and connection fee on new construction、reconstruction
and continuous construction projects will sign the new agreement
between
project constructor and Party B under the negotiation of Gas department
Construction Bureau. The connection on end users will be charged
two
months after the successful gas
supply.
|
Other
general terms:
| 1 、 |
Party
A and Party B will organize a team for project
development.
|
| 2 、 |
After
the execution of this agreement, if a party withdraws the project
without
the agreement of the non-withdrawing Party, the withdrawing Party
will
take the full responsibility.
|
| 3 、 |
Party
A and Party B will strictly execute this
agreement.
|
| 4 、 |
This
agreement will be executed after the signature of each Party, Each
Party
takes 3 copies of this agreement.
|
| 5 、 |
If
any disputes raise between both Parties, each Party can take the
legal
action to the local court.
|
