The State Council recently issued the "Regulations on the Administration of Toll Roads," aiming to regulate and control the expansion of toll road networks. According to Xinhua News Agency, the regulations were published as State Council Decree No. 417 and will take effect on November 1, 2004. The document emphasizes that road development should prioritize non-toll roads while allowing for a measured expansion of toll roads. It also states that highways funded by government or private entities should not charge vehicle tolls. The regulations were introduced in response to growing concerns over the increasing number of toll stations, high fees, and improper management of toll rights. By the end of the previous year, toll roads accounted for approximately 8.1% of the total road network in China. However, several issues have emerged, including excessive toll stations that hinder traffic efficiency, unreasonably high fees that burden the public, and some toll stations continuing operations beyond their designated periods. Additionally, the transfer of toll rights has been inconsistent, leading to unauthorized approvals and potential loss of state assets. To address these problems, the regulations aim to strengthen legal oversight of toll road operators and managers. Article 3 of the regulations clearly states that toll road development must be controlled, with non-toll roads serving as the primary infrastructure and toll roads used only where necessary. This approach reflects the public nature of highways, which are considered essential public goods. While the "loan-building roads, reimbursement of loans" policy was once necessary due to financial constraints, the government now has greater capacity to support infrastructure without relying heavily on tolls. The regulations also set strict guidelines for toll collection. For example, toll stations must be approved by provincial governments, and on non-closed toll roads, the distance between adjacent stations must be at least 50 kilometers. The maximum toll period for government-funded roads is 15 years, while for operating roads, it can extend up to 25 years. In central and western regions, this period may be extended to 30 years. Furthermore, roads below Grade 2 are generally not allowed to collect tolls, except in certain areas. Another key provision requires toll road operators to maintain proper road conditions and ensure quality service. If maintenance standards are not met, authorities can order the operator to cease charging. Operators must also display toll information publicly and avoid arbitrary fee increases. In cases where the government repays loans before the toll period ends, tolls must be terminated, and the public must be informed. In recent years, there have been reports of toll road operators neglecting maintenance in favor of collecting fees, leading to poor service quality and public dissatisfaction. The new regulations aim to prevent such practices by imposing stricter oversight and accountability. Overall, the regulations represent a significant step toward ensuring transparency, fairness, and sustainability in the management of toll roads across China.

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