Notice of national development and Reform Commission on strengthening investment and construction management of PPP projects in accordance with laws and regulations

Development and reform commissions of all provinces, autonomous regions, municipalities directly under the central government and cities specifically designated in the state plan, and development and Reform Commission of Xinjiang production and Construction Corps:

In order to implement the decision-making and deployment of the Party Central Committee and the State Council on supplementing infrastructure weakness, preventing and resolving the hidden debt risk of local governments, strengthening the management of PPP project investment and construction, and improving the scientificity of PPP project investment decision-making, the State Council recently promulgated and implemented the Regulations on government investment (State Council Order No. 712) and the enterprise investment project approval and filing management regulations For example (Order No. 673 of the State Council) and the guiding opinions of the general office of the State Council on maintaining the strength of reinforcing the weak points in the field of infrastructure (GBF [2018] No. 101), the relevant matters are hereby notified as follows.

1、Comprehensively and deeply carry out feasibility demonstration and review of PPP projects

（1） PPP projects involve the allocation of public resources and the protection of public interests. The necessity and feasibility of its construction should be studied and approved by the government. According to the requirements of the State Council on strengthening the feasibility study of PPP projects and reasonably determining the main contents and investment scale of projects, all projects to adopt PPP mode should carry out feasibility studies. The PPP mode can only be adopted for the projects that have passed the feasibility study and review.

（2） The feasibility demonstration of PPP project should not only fully analyze and demonstrate the feasibility of the project from the aspects of economic and social development needs, planning requirements, technical and economic feasibility, environmental impact, investment and financing scheme, comprehensive utilization of resources and whether it is conducive to improving the quality of people's life, but also from the necessity of government investment, comparison and selection of government investment methods, and the whole life cycle of the project In terms of cost, operational efficiency, risk management and whether it is conducive to attract social capital participation, the paper analyzes and demonstrates whether PPP mode is suitable for the project.

（3） For PPP projects under examination and approval system, the follow-up work such as PPP implementation scheme review and social capital selection can be carried out after the feasibility study report is approved. For PPP projects with approval system, feasibility demonstration and review should be carried out at the same time or separately. For PPP projects with record keeping system, feasibility demonstration and review should be carried out separately.

2、Strictly carry out project decision-making procedures in accordance with laws and regulations

（4） PPP projects should strictly implement the Regulations on government investment and Regulations on the administration of approval and filing of enterprise investment projects, and carry out the procedures of examination and approval, approval and filing according to laws and regulations. PPP projects with government capital injection shall be subject to examination and approval system in accordance with the regulations on government investment. Enterprise investment projects listed in the list of investment projects approved by the government shall be subject to the approval system in accordance with the regulations on the administration of approval and filing of enterprise investment projects. For the enterprise investment projects that implement the filing system, if the PPP mode is to be adopted, the feasibility of the project and the necessity of the PPP mode should be strictly demonstrated.

（5） PPP projects that fail to perform the examination and approval, approval, filing, feasibility demonstration and review procedures in accordance with the law are non-standard projects and shall not be constructed. It is not allowed to evade or replace the project approval, approval, filing, feasibility demonstration and review procedures in any form such as implementation scheme review.

（6） The main contents of the implementation plan, bidding documents and contracts shall be consistent with the approved feasibility study report, approval documents and filing information. In case of any of the following situations in the implementation plan, bidding documents, contract or construction, the application shall be submitted to the original examination and approval, approval and filing authority to re perform the project review and preparation procedures: (1) the project construction site changes; (2) the project construction scale and main construction contents change greatly; (3) the project construction standard changes greatly; (4) the project investment scale exceeds the approved investment 10% of capital.

3、Strictly implement the scheme audit and select social capital in accordance with laws and regulations

（7） To strengthen the audit of PPP project implementation plan, only through the implementation plan audit of PPP project can social capital selection be carried out. Encourage all localities to establish a joint review mechanism for PPP project implementation plans. Development and reform departments at all levels should strictly examine whether the main contents of the implementation plan are consistent with the approved feasibility study report, project approval documents and filing information. For PPP projects with single construction content, small investment scale and simple technical scheme, the implementation scheme can be included in the feasibility study report for review.

（8） Public bidding should be the main way to select social capital. We should not exclude or restrict private capital from participating in PPP projects, eliminate hidden barriers, and ensure equal treatment and fair competition. The main contents of the bidding documents shall be consistent with the approved PPP project implementation plan.

4、Strictly implement the regulations of the State Council on the capital system of fixed assets investment projects

（9） According to the relevant regulations of the State Council, the capital of an investment project is a non debt fund for the investment project, and the project legal person shall not bear any interest and debt of this part of the fund; the investor may enjoy the owner's rights and interests according to the proportion of his capital contribution according to law, and may also transfer his capital contribution, but shall not be withdrawn in any way.. The capital fund of fixed assets investment projects in various industries must meet the minimum proportion requirements stipulated by the State Council, and problems such as excessive borrowing and financing should be prevented.

（10） The financing methods and sources of funds for PPP projects should comply with the relevant provisions for preventing and resolving the hidden debt risks of local governments. It is not allowed to increase the hidden debts of local governments in a disguised form by means of agreed repurchase of investment principal and promise of guaranteed return, so as to strictly prevent the debt risk of local governments.

5、Bring all PPP projects into the national online approval and supervision platform for unified management in accordance with laws and regulations

（11） Strictly implement the regulations on government investment and regulations on the administration of approval and filing of enterprise investment projects. Except for classified projects, all PPP projects must use the project codes generated by the national online approval and supervision platform for investment projects (hereinafter referred to as online platform) to handle various approval procedures respectively. It is not allowed to evade or replace PPP projects into the unified management of online platform in any other form.

（12） Relying on the online platform, establish a national PPP project information monitoring service platform, and strengthen PPP project management and information monitoring. For PPP projects that have passed project approval, approval or filing, feasibility demonstration and implementation scheme review, project information should be disclosed through the platform to realize the functions of regular release, dynamic monitoring and real-time query of national PPP project information, so as to facilitate social capital and financial institutions to better participate in PPP projects.

（13） The information audit of national PPP project information monitoring service platform adopts territorial management. In principle, the development and reform department at the same level in the place where the project implementation subject is located shall audit the project information filled in by the project unit. The development and reform departments at all levels should strengthen the supervision and inspection of the implementation of PPP projects by means of online monitoring and on-site verification. The projects that have not been entered into the national PPP project information monitoring service platform are non-standard projects.

（14） We will implement the requirements of the regulations on the disclosure of government information (Decree No. 492 of the State Council) and the opinions of the general office of the State Council on promoting the disclosure of government information in the field of approval and implementation of major construction projects (GBF [2017] No. 94), and rely on the online platform to mainly disclose the approval service information, approval result information, bidding information, construction and completion of PPP projects Information about work.

6、Strengthen the supervision of PPP projects and firmly punish the illegal and dishonest behaviors

（15） In accordance with the regulations on government investment, regulations on the administration of approval and filing of enterprise investment projects and the relevant provisions of this circular, the supervision of PPP projects shall be strengthened. The government should fulfill its promise according to the law and regulations, and should not change the responsibilities and obligations of the government as stipulated in the contract without authorization. According to the PPP project contract, we should strengthen the dynamic supervision of the whole process of the social capital side's performance ability, so as to prevent the project from being unable to be implemented due to the excessive investment and borrowing of the social capital party beyond its own capacity, or the major changes in the company's equity and management structure. According to the regulations, the local government and social capital with serious dishonesty behaviors will be publicized to the public through credit China website and other platforms, and the relevant departments will impose joint punishment on them according to law and regulations.

（16） To guide and supervise PPP consulting institutions to strictly implement the administrative measures for engineering consulting industry (NDRC Order No. 9, 2017), fulfill legal filing obligations and accept industry supervision and management through online platform. To guide and supervise the credit evaluation of PPP consulting institutions, guide PPP consulting institutions to actively participate in the industry self-discipline management, and guide relevant parties to select PPP consulting agencies through full competition and independent selection. It is strictly prohibited to restrict the social capital side and financial institutions from independently selecting PPP consulting institutions by setting up short list and Institution Library. If the PPP consulting agency fails to perform the filing procedures, violates the provisions of contract services, related avoidance, quality traceability, antitrust, etc., and violates the decision-making procedure provisions of the regulations on government investment, and there are serious quality problems in consulting or evaluation services that affect the implementation of project decision-making, they shall be punished in strict accordance with the provisions.

The development and reform departments at all levels shall, in strict accordance with the regulations on government investment and the regulations on the administration of approval and filing of enterprise investment projects, and in accordance with the requirements of this circular, pay close attention to improving the local PPP project management system to ensure that it is consistent with the upper level law. This notice shall be implemented as of July 1, 2019. In case of any discrepancy between the original policies and the contents of this circular, this Circular shall prevail.

National Development and Reform Commission

June 21, 2019