Water Supply Act Article 40

Where a private water supply enterprise is to be transferred to the government and the parties concerned cannot reach an agreement on the purchase price, the government and the private entity will each appoint two experts, who in turn will jointly recommend another expert to form a five-person valuation commission to determine the price by the following methods:1. Appraise the price based on the total existing assets of the water supply enterprise.2. Appraise the price based on the start-up costs of the water supply enterprises, and the prices of all assets bought and improvements made during the operation period less the prices of scrapped equipment, allowance for depreciation, reserves set aside, and user provident fund.When no agreement can be reached on the appointment of the fifth expert pursuant to Paragraph 1 hereof, the experts appointed by both parties will each name two or more experts in equivalent amount applying by the government and the private entity for the court of the judicial district to choose.