National Development and Reform Commission's "Special Management Measures for Central Budget Investment in Major Regional Development Strategies (Promoting Hainan's Comprehensive Deepening of Reform and Opening-up)"

Chapter I General Provisions

Article 1 In order to strengthen the special management of central budget investment in major regional development strategy construction (promoting Hainan's comprehensive deepening of reform and opening up), improve the efficiency of fund use, and ensure the safe and compliant use of funds, in accordance with the "Government Investment Regulations" (State Council Order No. 712), the "Guiding Opinions of the State Council on Promoting the Reform of the Division of Fiscal Powers and Expenditure Responsibilities between the Central and Local Governments" (State Council [2016] No. 49), and the "Management Measures for Direct Investment Projects within the Central Budget" (National Development and Reform Commission Order No. 7), "Management Measures for Investment Subsidies and Interest Subsidies within the Central Budget" (National Development and Reform Commission Order No. 45), "Management Measures for Approval and Filing of Enterprise Investment Projects" (National Development and Reform Commission Order No. 2), "Interim Measures for the Preparation and Management of Central Budget Investment Plans" (Development and Reform Investment [2015] These Measures are formulated in accordance with the relevant provisions of the Notice of the National Development and Reform Commission on Standardizing the Arrangement Methods and Project Management of Central Budget Investment Funds (No. 3092), the Interim Measures for the Supervision and Administration of Central Budget Investment (No. 525 of the Development and Reform Commission [2015]), the Notice of the National Development and Reform Commission on Standardizing the Arrangement Methods and Project Management of Central Budget Investment Funds (No. 518 of the Development and Reform Commission [2020]), and the Interim Measures for the Operation and Management of the National Major Construction Project Database (No. 410 of the Development and Reform Commission [2020]).

Article 2 To promote the comprehensive deepening of reform and opening up in Hainan, the arrangements for central budget investment should fully implement the spirit of General Secretary Xi Jinping's series of important speeches, instructions and instructions on the comprehensive deepening of reform and opening up in Hainan and the construction of a free trade port, implement the requirements of the Guiding Opinions of the CPC Central Committee and the State Council on Supporting the Comprehensive Deepening of Reform and Opening Up in Hainan and the Overall Plan for the Construction of the Hainan Free Trade Port, and implement the relevant decisions and arrangements of the Leading Group for Promoting the Comprehensive Deepening of Reform and Opening Up in Hainan.

Article 3 To promote the construction of Hainan's comprehensive deepening of reform and opening up projects, we should adhere to the principles of government guidance and multi-party participation, coordinate the use of multiple funding channels, and form an investment synergy. Adopt various methods to attract social capital participation. In principle, general projects that fall under local authority and can be funded by market means or covered by other special funds will not be supported.

Article 4 The arrangement and use of special investment shall follow the principles of overall planning, highlighting key points, scientific decision-making, standardized management, performance-oriented, open and transparent, and treat all types of investment entities equally.

Chapter II Support Direction

Article 5 Special investment shall be mainly used to support major overall, strategic and basic projects of Hainan Free Trade Port that reflect the central strategic intention, cannot be effectively allocated by the market, and cannot be supported by existing funding channels, so as to better play the guiding and leveraging role of central budget investment in areas with strong spillover and high social benefits.

Article 6 The support direction mainly includes projects such as ecological protection and restoration, high-tech industry cultivation, tourism development, risk prevention and control such as the whole island closure, major infrastructure, public services and key functional platform construction that play an important supporting role in the construction of Hainan Free Trade Port.

Article 7 The following investment projects do not fall within the scope of special investment support:

(i) Projects that have other central budget investment support (except for projects that have pre-investment expenses arranged by central budget investment);

(ii) Projects that do not meet the conditions for construction and cannot form investment in the current year;

(iii) Completed projects;

(iv) Other projects that do not meet the direction of special investment support.

Chapter III Funding Arrangements

Article 8 Special investment is arranged according to projects. For non-operating fixed asset investment projects of central units (including central departments and their dispatched agencies, vertical management units, and affiliated institutions), direct investment is the main method; for operating projects that really need support, capital injection is mainly adopted, and investment subsidies, loan interest subsidies, etc. can also be appropriately adopted. For local investment projects, according to the specific circumstances of the project, the local development and reform department shall propose the proposed funding arrangement method in accordance with the relevant provisions of the "Government Investment Regulations" when applying for the central budget investment plan.

Article 9 For non-operating projects of central units (direct investment projects within the central budget), all investment is arranged by central budget investment. For local non-operating projects, the subsidy ratio for projects in the same field shall be determined by referring to the existing special subsidy standards for investment within the central budget; for projects without reference standards, the central budget investment shall, in principle, be subsidized at a ratio not exceeding 80% of the total investment. For operating projects that really need support, subsidies shall be provided at a ratio not exceeding 10% of the total investment.

Chapter IV Funding Application

Article 10 All regions and relevant project units shall, in accordance with the current relevant technical regulations, specifications and standards, do a solid job in the preliminary work of the project, ensure that the depth of the preliminary work meets the prescribed requirements, and be responsible for the authenticity of the project proposal, feasibility study report, preliminary design and other documents that should be attached according to law.

Article 11 Government investment projects that adopt direct investment and capital injection arrangements shall comply with the approval procedures in accordance with relevant regulations. Enterprise investment projects that adopt investment subsidies and loan interest subsidies shall comply with the approval or filing procedures in accordance with relevant regulations.

Article 12 Development and Reform Departments at all levels and relevant units shall strengthen project reserves, reasonably determine annual construction tasks and calculate funding needs based on the progress of preliminary work, construction progress, construction period, etc., promptly include eligible projects into the national major construction project database and the three-year rolling plan, and push eligible projects in the three-year rolling plan to the annual investment plan application area in accordance with the requirements for the annual central budget investment plan application.

Article 13 Provincial development and reform departments and relevant units shall be project summary application units. After reviewing the project funding application reports submitted by the project units, they shall propose projects to apply for this special investment, clarify the proposed funding arrangement method, and submit the annual investment plan application report. At the same time, in accordance with the requirements of the "Opinions of the CPC Central Committee and the State Council on the Comprehensive Implementation of Budget Performance Management" (Zhongfa [2018] No. 34) and the "Notice on Strengthening the Performance Management of Central Budget Investment" (Fagai Touzi [2019] No. 220), organize the central budget investment performance application work, fill in the special investment plan performance targets, and submit them together with the annual investment plan application report. Local application materials must be approved by the provincial government.

Article 14 Provincial development and reform departments and relevant units shall rely on the major construction project database to review projects applying for this special investment, and shall be responsible for the authenticity and compliance of the review results and application materials. The key points of the review include:

(i) Whether the application project has been approved, ratified or filed by the government investment authority in accordance with regulations, whether the land use pre-examination, planning and site selection and other approval procedures have been completed, and whether the application procedures for the started projects are compliant and complete;

(ii) Whether the application project has a project code, and the authenticity of the project code and whether the application materials are consistent with the project information on the online platform are verified through the online approval and supervision platform for investment projects (hereinafter referred to as the "online platform");

(iii) Whether the application project meets the support scope of this special project, whether it is included in the major construction project database, and included in the three-year rolling investment plan;

(iv) Whether the application project has obtained other central budget investment or other financial support;

(v) Whether the project unit is included in the list of serious dishonest entities;

(vi) Whether the application investment meets the subsidy standards;

(vii) Whether the project has clarified other funds in addition to the planned central budget investment; whether the project construction is in line with the local fiscal affordability and government investment capacity, and whether it causes hidden debts of local governments;

(viii) Whether the "two responsibilities" of the project unit and the supervision unit are filled in in a standardized manner, etc. Article 15 The project funding application documents submitted by provincial development and reform departments and relevant units shall include the annual investment plan application report and related attachments. The attachments mainly include:

(i) Project summary table, including project name, project unit, project code generated by the online platform, construction content, total investment and funding source, preliminary work status, whether to apply for other central budget funds, etc., and opinions on preliminary review according to the review focus stipulated in Article 14;

(ii) The project is included in the three-year rolling investment plan and the approval (verification, filing) is completed through the online platform;

(iii) The main reasons and policy basis for applying for central budget investment;

(iv) Feasibility study report or preliminary design approval document for government investment projects subject to approval management;

(v) Project application report approval reply document for enterprise investment projects subject to approval management;

(vi) Filing opinions for enterprise investment projects subject to filing management;

(vii) Other contents that need to be explained.

Article 16 Project units shall have independent legal person status. The project must have mature preliminary work and meet the conditions for commencement. Any project that has not obtained the approval, ratification and filing procedures in accordance with the law, has not yet determined the construction site, has not yet secured the construction funds, has not matured the construction plan, and has not been included in the three-year rolling investment plan shall not be declared, so as to ensure that the central investment plan is issued and the project can be started in the year.

Chapter V Fund Allocation

Article 17 After the National Development and Reform Commission accepts the project funding application documents of the provincial development and reform departments and relevant units, it shall focus on reviewing the following matters:

(a) Whether it complies with the direction of special investment support;

(b) Whether it complies with the principles of investment subsidy fund arrangement;

(c) Whether the relevant documents submitted are complete and valid;

(d) Whether the main construction conditions of the project are basically implemented;

(e) Whether the project unit is included in the list of serious dishonest entities.

Article 18 The National Development and Reform Commission shall strictly implement the provisions of these Measures in the arrangement of funds, establish and improve the supervision and management mechanism, and ensure that the allocation of funds is open, fair and transparent.

Article 19: Based on the overall deployment of promoting Hainan's comprehensive deepening of reform and opening up and the construction of a free trade port, the National Development and Reform Commission shall determine the central budget investment plan for special investment on the basis of reviewing the funding application reports of provincial development and reform departments and relevant units, and simultaneously issue the annual investment plan and performance targets to provincial development and reform departments and relevant units.

Article 20: Provincial development and reform departments and relevant units shall forward and issue the investment plan within 10 working days after receiving the investment plan issuance document, and simultaneously issue specific construction project performance targets.

Chapter VI Project Management

Article 21: Project management implements the project legal person responsibility system, bidding system, contract management system and supervision system, as well as relevant regulations on financial management related to central budget investment. For special investment, independent accounting and special funds for special purposes shall be achieved, and retention, squeezing, interception or misappropriation is strictly prohibited.

Article 22: As the responsible entity for the annual investment plan application and implementation, as well as project construction and management, the project unit shall strictly follow the project management regulations and approval procedures, implement construction funds, perform construction application procedures, and organize construction in accordance with the approved construction content, scale and construction period.

Article 23 Development and Reform Departments at all levels and relevant units shall, together with relevant departments, conscientiously organize project implementation, strictly implement the responsibilities of local supervision of investment plan execution and project implementation, establish a working mechanism, formulate a supervision plan, and organize and implement daily scheduling, online monitoring and supervision and accountability of central budget investment projects. Project units shall truthfully report basic information on project commencement, construction progress and completion through online platforms (confidential projects through confidential channels), and shall make special reports on major problems encountered during project implementation.

Article 24 After the annual investment plan is issued, it shall not be adjusted without authorization. If the project cannot complete the established construction goals due to failure to start construction on time or major changes in construction scale, standards and content, the project unit shall promptly report the situation and reasons, and the provincial development and reform departments and relevant units shall apply to the National Development and Reform Commission for adjustment of the investment plan in accordance with procedures.

Article 25 After the project is completed, it shall be completed and accepted in accordance with relevant national regulations, and the acceptance results shall be reported to the provincial development and reform departments and relevant units in a timely manner. The provincial development and reform departments and relevant units are responsible for reporting the relevant situation to the National Development and Reform Commission for filing.

Article 26 Provincial development and reform departments and relevant units are responsible for summarizing the use of special investment and project progress, and report to the National Development and Reform Commission before the end of January of the following year. Major situations should be reported at any time.

Chapter VII Supervision and Inspection and Legal Liability

Article 27 The direct responsible units and supervisors for daily supervision of projects shall perform direct daily supervision responsibilities for project application, construction management, information reporting, etc. Project units shall consciously accept supervision and inspection by audit, supervision and other departments.

Article 28 The National Development and Reform Commission, local development and reform departments at all levels and relevant units shall supervise projects using central budget investment according to the division of responsibilities, prevent the transfer, embezzlement or misappropriation of investment subsidy funds, and ensure the reasonable use of central budget investment and the smooth implementation of projects. Through online monitoring, on-site verification and other methods such as online platforms and national major construction project databases, performance targets shall be tracked and monitored, the performance of special investment shall be dynamically grasped, and project units shall be urged to make timely rectifications for problems found in performance monitoring.

Article 29 Information on investment projects that do not involve confidentiality requirements shall be disclosed to the public in accordance with relevant regulations and actively accept public supervision. For the relevant situations reported by the public, local development and reform departments at all levels shall promptly organize inspections or conduct joint investigations with relevant departments. If there are indeed problems, the project units shall be urged to make rectifications in a timely manner.

Article 30 The National Development and Reform Commission accepts reports from units and individuals on illegal and irregular behaviors in the approval and construction process of projects, and investigates and handles them in accordance with relevant regulations.

Article 31 Local development and reform departments at all levels and relevant units are responsible for organizing supervision and inspection of projects, and cooperate with relevant departments to carry out supervision and auditing to ensure that the use of central budgetary investment is legal and compliant and plays an effective role. Major issues shall be reported to superior departments in a timely manner.

Article 32 The National Development and Reform Commission shall conduct supervision and inspection from time to time and deal with the problems found in a timely manner in accordance with relevant regulations.

Article 33 Project units shall cooperate with supervision and inspection, truthfully provide documents and information related to the project, and shall not destroy, conceal, transfer, tamper with, forge or delay or refuse to provide relevant documents and information without reason.

Article 34: For projects that have been notified of major problems such as audits, the city or county, key functional area or unit where they are located shall be suspended from applying for projects in the next year, and the provincial development and reform department and relevant units shall take the lead in proposing rectification opinions.

Article 35: If a project unit has any of the following circumstances, it shall be ordered to rectify, and according to the specific circumstances, the disbursement of funds shall be suspended or stopped or the disbursed funds shall be recovered, the construction activities shall be suspended or stopped, and the relevant person in charge shall be requested or transferred to the relevant authorities to investigate the responsibilities of the relevant person in charge according to law depending on the severity of the circumstances:

(1) Starting construction projects without approval or not meeting the prescribed construction conditions;

(2) Providing false information to defraud investment within the central budget;

(3) Violating the prescribed procedures or principles to issue investment plans or arrange projects;

(4) Unauthorized changes to the construction site, scale, content and construction standards;

(5) Arrears, interception, misappropriation, squeezing, deception, embezzlement