(July 16, 2021)

SMPG D [2021] No. 8

Attention: all District People's Governments and Commissions, Offices and Bureaus of the Municipal People’s Government:

We hereby issue and distribute the Procedures of Shanghai Municipality on the Management of the Municipal Government Investment to you and require you to implement them conscientiously.

Procedures of Shanghai Municipality on the Management of the Municipal Government Investment

Chapter I  General Provisions

Article 1

With a view to giving full play to the role of government investment, improving the efficiency of government investment, standardizing the government investment acts and stimulating the vitality of social investment, these Procedures are formulated in accordance with the Regulations on Government Investment and other relevant rules, and in the light of the actual circumstances of this Municipality.

Article 2

The term "municipal government investment" as mentioned in these Procedures refers to the investment and construction activities of the fixed assets with funds arranged by the municipal budgets, including new construction, expansion, reconstruction and technical transformation, etc.

The projects invested by the municipal government investment institutions and balanced by the municipal government funds shall be included in the municipal government investment management.

Article 3

The municipal government investment funds shall be invested in the social public welfare services, public infrastructure, agriculture and rural areas, ecological and environmental protection, major scientific and technological progress, social management, national security and other public areas where the market cannot effectively allocate resources.

Article 4

The municipal government investment funds are mainly in the form of direct investment and capital injection according to the project arrangement; investment subsidies and loan interest discounts may also be adopted.

The arrangement of the municipal government investment funds shall meet the relevant requirements of promoting the reform of the division of financial powers and expenditure responsibilities between this Municipality and districts, all kinds of investors shall be treated equally, and discriminatory requirements shall not be imposed.

Article 5

The Municipal Development and Reform Commission shall, in accordance with the relevant provisions of the State and these Procedures, perform the duties of comprehensive management of the municipal government investment as the competent investment department. The other relevant departments shall perform the corresponding investment administrative responsibilities of the municipal government in accordance with the respective functions of these departments.

Article 6

Except for the projects involving state secrets, the Municipal Development and Reform Commission and the other relevant departments shall handle the approval procedures of the municipal government investment projects, via the Shanghai online approval and supervision platform for investment projects (hereinafter referred to as the "online platform"), by using the project codes generated by the online platform.

The Municipal Development and Reform Commission and the other relevant departments shall list the planning and macro-control policies related to the municipal government investment via the online platform, disclose the approval process of the government investment projects, and provide relevant consulting services for the project units.

Chapter II  Government Investment Decision

Article 7

The Municipal Development and Reform Commission and the Municipal Finance Bureau shall, together with the relevant departments, make overall arrangements for the projects using municipal government investment funds and standardize the use of various government investment funds in accordance with the national economic and social development plans, the medium-term financial plans, the national macro-control policies and the relevant policies of this Municipality, and in combination with the financial revenue and expenditure situations.

Article 8

The project reserve system shall be implemented for the municipal government investment projects, which are in principle selected from the municipal government investment project reserve. The Municipal Development and Reform Commission and the relevant departments shall establish a reserve for municipal government investment projects and be responsible for the warehousing, management and renewal of the reserve projects.

The specialized plans, special development and construction plans, industrial policies, etc., which have been demonstrated and balanced by the Municipal Development and Reform Commission with the relevant departments and submitted to the Municipal People’s Government for approval, are an important basis for the project inclusion in the reserve of municipal government investment projects.

Article 9

The approval procedures for the municipal government investment projects (hereinafter referred to as "government investment projects") in the form of direct investment and capital injection by the government include: project proposal approval, feasibility study report approval, preliminary design and budget estimation approval.

Where the investment funds of the municipal government are arranged by means of investment subsidies and loan interest discounts, the relevant provisions on investment subsidies and loan interest discounts shall be implemented.

For the government investment projects managed by the state department in charge of investment or other relevant departments under the State Council, the relevant provisions of the State shall be implemented.

Article 10

The project (legal person) units shall strengthen the preliminary work of the government investment projects, ensure the depth of the preliminary work meets the specified requirements, organize the preparation of the project proposals, feasibility study reports, preliminary designs and budget estimates, and submit them for approval after being reviewed by the relevant competent departments (units).

The project (legal person) units shall be responsible for the authenticity of the project proposals, feasibility study reports, preliminary designs and budget estimates and other documents that shall be attached according to law.

Article 11

For the following government investment projects, the documents and examination and approval procedures that need to be submitted for approval may be simplified in accordance with the provisions:

1.projects defined in relevant plans;

2. some expansion and reconstruction projects;

3. projects with single construction content, small investment scale and simple technical scheme; and

4. projects that need urgent construction in response to emergencies such as natural disasters, accident disasters, public health events and social security events.

Article 12

When organizing the preparation of project proposals, the competent departments (units) or project (legal person) units shall make a preliminary analysis on the necessity of project construction, the main construction contents, proposed location, proposed scale, investment estimation, fund raising and social and economic benefits, and the relevant documents shall be attached.

Article 13

The Municipal Development and Reform Commission shall examine and approve the project proposals for the projects that meet the relevant provisions and are really necessary for construction.

The project proposals shall be valid for two years from the date of approval. The project units shall apply to the Municipal Development and Reform Commission for extension 30 working days before the expiration of the validity of the approval documents to the project proposals. Where the application for extension is not made in accordance with the provisions, the approval to the project proposals shall automatically become invalid.

Article 14

The project (legal person) units shall organize and carry out the feasibility study according to the approval of the project proposals, and entrust the engineering consulting units with corresponding experience and capacity to prepare the feasibility study reports.

The feasibility study reports shall comprehensively analyze and demonstrate the technical and economic feasibility, social benefits, ecological environment, resource utilization, energy-saving measures and social stability risks of the projects, fix various construction conditions, and relevant permits and review opinions shall be obtained in accordance with the relevant provisions.

Article 15

For the projects that meet the relevant provisions and have the construction conditions, the Municipal Development and Reform Commission shall approve the feasibility study reports.

According to the actual situations of the projects, the Municipal Development and Reform Commission shall specify the project fund-raising schemes and the investment amounts of the municipal government in the approval to the project proposals or feasibility study reports.

Article 16

The project (legal person) units shall select the institutions with corresponding engineering design qualification to prepare the preliminary design documents in accordance with the bidding law and other relevant requirements. The design units shall carry out the design in strict accordance with the requirements of the approval to the feasibility study reports and the relevant national standards and specifications.

Article 17

The Municipal Development and Reform Commission or the other relevant departments shall, according to the relevant provisions, examine whether the preliminary designs meet the requirements of the approval to the feasibility study reports and relevant national standards and specifications, and shall decide whether to grant the approval.

The investment estimates shall be verified by the Municipal Development and Reform Commission, and the preliminary design examination and approval departments shall be entrusted to give replies at the time of examining and approving the preliminary designs.

Article 18

The government investment projects may be evaluated and demonstrated by entrusted engineering consulting units with corresponding experience and capacity. For government investment projects that have significant impacts on the economic and social development and public interests or have large investment scales, the decisions on whether to approve them shall be made on the basis of evaluation by the engineering consulting units, public participation, expert evaluation and risk evaluation.

Article 19

In the preliminary work of the projects, in case of any of the following circumstances, it shall be reported to the Municipal Development and Reform Commission for adjustment and approval in accordance with the procedures:

1. the total investment of a project fully invested by the government has changed;

2. for the projects with partial investment or capital arrangement by the government, the total investment changes reach more than 10%, or the investment has changed and the government investment needs to be adjusted;

3. major changes have taken place in the project (legal person) units, construction sites, construction contents, construction scales and construction standards.

Chapter III  Annual Government Investment Plan

Article 20

The Municipal Development and Reform Commission and the relevant departments shall organize the preparation of the annual investment plans of the municipal government in accordance with the relevant provisions. The annual investment plans of the municipal government shall be connected with the municipal budgets, and the Municipal Development and Reform Commission shall be responsible for issuing the plans.

Article 21

The annual investment plans of the municipal government shall specify the project names, construction contents and scales, construction periods, total project investment, annual investment amounts and capital source, etc.

Article 22

The projects included in the annual investment plans of the municipal government shall meet the following conditions:

1. Where direct investment or capital injection is adopted, the feasibility study reports have been approved or the investment estimates have been approved;

2. Where investment subsidies and loan interest discounts are adopted, the procedures have been handled in accordance with the relevant provisions of the State and this Municipality.

Article 23

The Municipal Finance Bureau shall, in accordance with the approved budget and the annual investment plans of the municipal government, and in accordance with laws, rules and the relevant provisions on the management of the state treasury, timely and fully allocate the investment funds of the municipal government.

Chapter IV  Implementation of Government Investment Project

Article 24

The construction of the government investment projects shall meet the construction requirements stipulated in the relevant laws, regulations and rules; construction of those projects failing to meet the prescribed construction requirements shall not start.

Article 25

The municipal government investment must be earmarked for special purposes. The project (legal person) units shall not borrow, detain or misappropriate the investment for other purposes. The government investment projects shall be subject to bidding according to law. The goods, projects, services, etc. included in the catalogue of government procurement shall be subject to government procurement according to law.

The confidential projects shall be managed in accordance with the relevant provisions of the State and this Municipality.

Article 26

The project (legal person) units shall organize the implementation in strict accordance with the approved preliminary designs and budget estimates of the projects.

In the course of project implementation, if the site of construction is to be changed or the scales and contents of construction are to be greatly changed, it shall be reported to the Municipal Development and Reform Commission for examination and approval in accordance with the  relevant provisions.

Where budget adjustment or adjustment is involved, it shall be handled in accordance with the provisions of laws and rules on budget.

Article 27

The construction periods of the government invested projects shall be reasonably determined and strictly implemented in accordance with the relevant provisions of the State, and no unit or individual may illegally intervene.

Article 28

Upon the completion of the government investment projects, completion acceptance inspection shall be carried out in accordance with the relevant provisions of the State and this Municipality, and the financial final accounts shall be timely handled upon the completion acceptance.

The surplus financial funds of the government investment projects shall be returned to the state treasury in accordance with the relevant provisions of the State.

Article 29

The Municipal Development and Reform Commission may select representative completed government investment projects to carry out post project evaluation. The post project evaluation shall comprehensively evaluate the approval and implementation of the projects according to the actual effects after the completion of the projects, and put forward clear opinions upon them.

Chapter V  Supervision and Management

Article 30

The project (legal person) units shall truthfully submit the basic information on the commencement, construction progress and completion of government investment projects via the online platforms.

Article 31

The Municipal Development and Reform Commission and the other departments responsible for the supervision and management of the government investment projects according to law shall establish an information sharing mechanism for the government investment projects, realize information sharing via online platforms, and strengthen the supervision and inspection of the implementation of the government investment projects by means of online monitoring and on-site verification.

Article 32

The project (legal person) units shall, in accordance with the relevant provisions of the State, strengthen the file management of the government investment projects and file the relevant documents and materials in the process of project approval and implementation for future reference.

Article 33

The performance management, construction project quality management, safety production management and the other matters of the government investment projects shall be handled in accordance with the relevant laws and rules.

Article 34

The competent departments (units), project (legal person) units, social intermediaries and their staff shall strictly implement the relevant provisions of laws, rules and these Procedures. In case of violation of the provisions, the relevant departments shall give sanctions to the relevant units and their staff according to law. If the case constitutes a crime, criminal responsibility shall be investigated according to law.

The dishonest information of the relevant units and their staff shall be collected to the Shanghai Public Credit Information Platform according to laws and rules.

Chapter VI  Supplementary Provisions

Article 35

Direct investment refers to the way in which the government investment funds are arranged to be injected into the non-operating projects, and the relevant government agencies or their designated and entrusted organs, organizations, institutions and state-owned enterprises organize and implement the projects as the project (legal person) units.

Capital injection refers to the way of arranging the government investment funds as the capital of the projects, appointing government investor representatives to exercise the owner's rights and interests, and forming corresponding state-owned property rights after the completion of the projects.

Investment subsidy refers to the way of arranging the government investment funds to subsidize the projects.

Loan interest discount refers to the way of arranging the government investment funds to subsidize the loan interest of the investment projects that use loans.

Article 36

These Procedures shall be effective as of September 1, 2021 and be valid until August 31, 2026.