no.1
Compliant financing channels for infrastructure projects
(1) Legally and compliantly issue local ** bonds within the limit
Infrastructure projects are mainly investment projects, and their funds are mainly from investment, in addition to budget funds, the main funds are local debt, according toThe Budget Law was revised in 2014stipulates that the issuance of local bonds is the only legal way for local governments to raise debts.
Infrastructure projects are mainly raised through the issuance of special bonds that balance project income and financingSo far, the types of standardized project revenue special bonds that have been launched include: land reserve special bonds, toll road special bonds, shantytown reform special bonds, rail transit special bonds and special bonds for colleges and universitiesIn recent years, the new special bond varieties have been continuously innovated, and the original standardized special bonds have also been adjusted. On September 4, 2019, the executive meeting clarified the scope of use of special bonds, pointing out that the new quota funds of special bonds in 2020 shall not be used for land reserves and real estate-related fieldsSpecial bonds for land storage and special bonds for shantytown reform will be gradually withdrawn。Since then, the scope of application of special bonds has been expanded twice on the basis of the special bonds determined at this meeting.
At present, the scope of use of special bonds mainly includes:
1. Transportation infrastructure such as railways, toll roads, airports, and urban parking lots;
2. Energy projects such as urban and rural power grids, natural gas pipeline networks and gas storage facilities;
3. Ecological and environmental protection projects such as agriculture, forestry and water conservancy, urban sewage and garbage treatment;
4. Vocational education and livelihood services such as childcare, medical care, and elderly care;
5. Cold chain logistics facilities, water, electricity and heat and other municipal infrastructure;
6. Industrial park infrastructure;
7. Natural disaster prevention and control system;
8. Agricultural and rural infrastructure;
9. Follow-up support for ex-situ poverty alleviation and relocation;
10. Emergency medical treatment facilities and public health facilities;
11. Renovation of old urban communities;
12. New infrastructure and other fields.
The project constructed by issuing special bonds should be able to generate continuous and stable cash flow income reflected as ** income or special income, and the cash flow income should be able to fully cover the scale of repayment of principal and interest of special bonds. The ** or special income obtained by the project corresponding to the special bond for project income shall be arranged according to the balance of the special bond corresponding to the project, and shall be used exclusively to repay the principal of the mature bond, and the principal of the mature bond shall not be repaid through the project income corresponding to other projects, so as to form a closed loop of funds for the issuance of special bonds, so as to make the management of special bond issuance more orderly and effectively prevent the generation of hidden debts.
(2) Rationally plan special bond projects and make full use of market-oriented financing to obtain funds
In June 2019, the Office of the Central Committee and the State Council issued the "Notice on Doing a Good Job in the Issuance of Local Special Bonds and Supporting Financing of Projects", which clearly stipulates that major projects with both income and other operating special income, and there is still residual special income after the repayment of the principal and interest of special bondsThe relevant enterprise legal person project unit may raise funds from financial institutions on a market-oriented basis according to the remaining special income.
For projects that implement enterprise operation and management, encourage and guide banking institutions to support special bond projects that meet the standards by means of project loans, and encourage insurance institutions to provide financing support for medium and long-term special bond projects that meet the standards. Infrastructure projects need to reasonably plan the proportion of first-class income and operating special income, and obtain market-oriented financing to the greatest extent, especially medium and long-term financing.
(3) Reasonably arrange special bonds and other financial funds as project capital, and leverage social capital to the greatest extent
In June 2019, the Notice of the Central Office of the State Council on Doing a Good Job in the Issuance of Local ** Special Bonds and Supporting Financing of Projects made it clear that major projects that meet the requirements areIf the special income meets the financing conditions after the repayment of the principal and interest of the special bonds after the assessment of the project proceeds, it is allowed to use part of the special bonds as a certain proportion of the project capital, but it shall not exceed the actual level of the project income for excessive financing
At the same time, local ** is encouraged to passRaise capital funds for major projects through channels such as overall budget revenue, transfer payments from superiors, carry-over surplus funds, and the use of budget stability and adjustment in accordance with regulations。All localities are allowed to use financial construction subsidy funds and budgetary investment as capital for major projects, and encourage the financial resources released after the issuance of local bonds to be used for capital for major projects. It has greatly improved the ability to raise capital for infrastructure projects, and infrastructure projects can make full use of special bonds or other financial funds as capital to leverage social capital to the greatest extent.
In September 2019, the executive meeting increased the proportion of special bond funds used for project capital to 20% of the province's special bond scale, and later adjusted to 25%, and there is no restriction on the proportion of a single project, and all quotas can be used for individual key projects.
(4) Do a good job in the transformation of the financing platform and carry out financing in accordance with the principle of marketization
The financing platform used to be the main implementation body of the infrastructure project, because of the public welfare nature of the infrastructure project, the financing platform will still be the main contractor of the infrastructure project, but before the financing platform completes the market-oriented transformation, the financial institution shall not provide financing to it, and it shall not be the project subject of the special bond project.
One of the directions for the market-oriented transformation of the financing platform is to become a state-owned enterprise that undertakes public welfare and quasi-public welfare infrastructure projects for the construction of the first country, and after the completion of the platform transformation, it can carry out market-oriented financing by issuing bonds or applying for loans from financial institutions.
In 2018, the Ministry of Finance jointly issued the "Notice on Further Enhancing the Ability of Corporate Bonds to Serve the Real Economy and Strictly Preventing Local Debt Risks (Fa Gai Ban Cai Jin 2018 No. 194)" to encourage high-quality enterprises and high-quality projects with market-oriented operations to carry out bond financing and further enhance the ability of corporate bonds to serve the real economy, project revenue bonds, special bonds, etc.
In addition, after the transformation, financing platforms with construction qualifications can also apply for loans from financial institutions to undertake infrastructure projects. Financing platforms serving as project owners for non-public welfare projects may apply for project loans; If the financing platform serves as the construction party of the project, it can apply for a working capital loan.
For some post-transition financing platforms with strong operating capabilities and meeting the statutory conditions, they can also seek to go public and obtain funds in the capital market.
(5) Compliantly use the PPP model to attract private parties to participate in investment
On March 7, 2019, the Ministry of Finance issued the "Implementation Opinions on Promoting the Standardized Development of ** and Social-Capital Partnership (Cai Jin 2019 No. 10)", which comprehensively sorted out the PPP model, improved the supervision of the PPP model as a whole, and clarified various problems in the PPP model after the standardization. The compliant use of the PPP model for infrastructure projects can maximize the efficiency of the best capital, better attract the investment of private capital, and obtain funds through the issuance of local bonds and supporting financing. In the investment, operation and management of public goods and public service projects, we should give full play to the role of market mechanisms and improve the management and efficiency of the supply of public goods and public services.
(6) Obtain first-class financial support for the construction and operation of infrastructure projects in compliance with regulations
According to the "Guiding Opinions on State-owned Capital Increasing Investment in Public Welfare Industries" issued by the Ministry of Finance in 2017Encourage local governments to allocate budget funds and assetsSupport all kinds of entities, including state-owned enterprises, to play a better role in public welfare industriesGive full play to the capital allocation function of state-owned capital investment and operation companies, and optimize the layout and structure of state-owned capital。Entrust the construction and operation of public welfare infrastructure projects to market-oriented entities, develop the commercial value of projects, liberalize market-oriented pricing rights, and improve the operational, profitability and financing capabilities of projects.
In addition, the guidance also encourages enterprises to increase investment in energy conservation and environmental protection, scientific research and other public welfare industries specified in the document. **Under the premise of local fiscal affordability and medium- and long-term fiscal sustainability, financial funds such as investment subsidies, operating subsidies, and fiscal interest discounts can be used to support the construction and operation of infrastructure projects.
Pure public welfare projects are paid for construction funds by entrusting construction or project procurement, and can also be entrusted to operate in the form of purchasing services; Quasi-public welfare projects can attract social capital to invest in construction, with financial funds as project capital, supporting market-oriented financing, and financial funds to subsidize operations; Franchise rights are granted for operational projects, which are constructed and operated by market-oriented entities and market-oriented financing is carried out.
EPC, ABO, TOT and other models can be used to better cooperate with social capital. Revitalize existing assets through the transfer of state-owned assets and other means, and make full use of the value of assets for market-oriented financing by means of mortgage and pledge.
(7) Assetization
For outside the negative list,Projects that already have stable cash flow will be supported by future earnings for asset-based financing, and products such as ABS, ABN, AND REITs will be issued。The underlying assets can be accounts receivable with a fixed amount and repayment period, or assets and a combination of assets with stable income.
Quasi-public welfare or operational projects in infrastructure projects, such as water supply, power supply, toll highways, etc., can be used as basic assets, but pure public welfare assets or real estate that has not yet obtained stable income are not suitable as basic assets, and the platform company or accounts receivable that bear the repayment responsibility before the completion of the transformation are also not suitable as basic assets.
(8) Issuance of equity-based financial instruments
On November 27, 2019, ** issued the "Notice on Strengthening the Management of Capital Funds for Fixed Asset Investment Projects" (Guo Fa 2019 No. 26), which proposed for the first time to "encourage project legal persons and project investors to raise capital for investment projects through multiple channels and standardize through the issuance of equity and equity financial instruments." "Equity and equity financial instruments have become a new channel for project financing.
Among them, equity financial instruments mainly include perpetual bonds, convertible bonds, and equity REITs.
1.Perpetual bonds are hybrid capital instruments, which are between ordinary senior debt and ordinary equity, and generally have the dual characteristics of debt and equity, which can be included in the equity account in accounting to reduce the leverage ratio of the enterprise, and the debtor has greater autonomy in terms of product term, redemption, interest deferred payment, etc., and will not put excessive pressure on the debtor's liquidity. From the point of view of issuance, it is mainly based on the "renewable corporate bonds" approved by the state and the "long-term medium-term notes with rights" registered by the National Association of Financial Institutional Investors, as well as the perpetual bond trust plan and perpetual debt investment plan issued by trust companies, insurance asset management companies and other asset management institutions.
2.Convertible bonds refer to bonds in which investors (or creditors) can convert bonds (or debts) into common equity of the company according to the agreement at the time of issuance. If the investor of the convertible bond does not want to convert it into the company's common equity, the investor (or creditor) can continue to hold the bond (or debt) and receive the principal and interest as agreed. Convertible bonds are a hybrid financing method, which is a combination of the company's ordinary bonds (or debts) and ** options.
3.Equity REITs are specific assets that are ** and raise funds by issuing beneficiary certificates. On August 7, 2020, the China Securities Regulatory Commission (CSRC) issued the "Guidelines for Public Offering of Infrastructure Investment** (Trial)", which officially launched public REITs in China, which can effectively revitalize various high-quality stock projects including franchises and PPPs through the issuance of public REITs, and obtain more funds to invest in the development of new projects.
(9) Equity financial instruments
Equity financial instruments under Circular 26 mainly include:Bank wealth management funds investing in equity, ** trust plan, etc.
1.The Measures for the Supervision and Administration of Wealth Management Business of Commercial Banks (Decree No. 6 [2018] of the China Banking and Insurance Regulatory Commission) issued on September 26, 2018 stipulates:The wealth management funds of commercial banks can be invested in equity assets, that is, the equity of listed and traded enterprises, the equity of unlisted enterprises and their beneficial rights (receipts).。On December 2, 2018, the China Banking and Insurance Regulatory Commission (CBIRC) promulgated the Measures for the Administration of Wealth Management Subsidiaries of Commercial Banks (Decree No. 7 [2018] of the CBIRC), which stipulates that the relevant provisions of Order No. 6 shall apply to the investment scope of wealth management funds of wealth management subsidiaries of commercial banks. As a result, bank wealth management funds can be used as project funds**.
Equity trust plansThe scope of investment includes **investment, investment in non-public market financial products and equity of non-listed companies, which can be used as project funds**.
3.Equity Category** refers to:Private Equity Investment**, which is established in compliance and filed with the ** industry association, can invest in the equity of non-listed companies, and can be used as project funds**.
(10) Shareholder loans in accordance with state regulations
According to Circular No. 26, "shareholder borrowings that meet national requirements can be used as project capital." ”
The so-called "shareholder loans in accordance with state regulations" means:There are no additional conditions for income such as principal and interest repurchase commitments, back-up guarantees, etc., and shareholder loans that are inferior to debt funds to obtain income, and are inferior to other debt funds in the order of repayment at the time of liquidation。According to accounting standards, if a shareholder's borrowing meets certain conditions, for example, if the long-term borrowing is not planned to be recovered and no income is calculated, the shareholder's borrowing can be recognized as equity.
(11) Equity cooperation to attract social funds
Equity cooperation with social investors in the public welfare industry** to introduce funds for local construction and development. According to the "Guiding Opinions on State-owned Capital Increasing Investment in Public Welfare Industries" issued by the Ministry of Finance in 2017, there are two ways to promote government-enterprise cooperation:
The first is to set up **investment**, give full play to the guiding role of investment, adhere to market-oriented operation, encourage and guide social capital, including state-owned enterprises, and promote the realization of policy goals such as supporting the transformation, upgrading and development of key industries in key areas;
The second is to deepen the reform of mixed ownership of state-owned enterprises, enlarge the function of state-owned capital, and guide private capital to invest in public welfare industries.
(12) Compliance funds for primary land development**
On September 4, 2019, after the executive meeting proposed that the new quota of special bonds in 2020 shall not be used for land reserves and real estate-related fields, land reserves and shantytown reform will not be allowed to be financed through the issuance of special bonds in the future, and future land storage and shantytown reform projects will rely on self-balancing to solve the problem of capital **.
The first-level development and demolition services and land leveling services and land leveling are paid by the first financial department through the purchase of services and the first procurement project, and the demolition compensation is not clearly stipulated whether it is the content of the purchase service, which is generally borne by the land storage center and paid by the first finance. In practice, there are attempts to package primary development with secondary development, and supplement the cost of primary development with the commercial benefits of secondary development, but it can only be feasible in the only two remaining special models, the PPP model for park development, or the urban renewal modelAt present, there is some controversy over the compliance of the primary and secondary land development linkage of the PPP model for park development, and the urban renewal model is only piloted in special areas such as Guangdong Province.
In 2019, after the suspension of the shantytown reform ** purchase service model, in 2020, it was stipulated that no special bonds should be issued for financing except for the existing shantytown reform projects, but at present, the shantytown reform is basically nearing the end, and there is no longer much practical significance in discussing the funds for shantytown reform.
In addition, the primary development of land can also make full use of the cross-provincial adjustment policy of the increase and decrease of urban and rural construction land linked to the surplus index, through the transfer of land indicators, according to the 2018 *** issued "urban and rural construction land increase and decrease linked to the cross-provincial adjustment of the index of the management measures", the province's land index circulation transaction income can not be centralized into the special financial account, so the market-oriented entity can be authorized to franchise, and the market-oriented entity itself in accordance with the market principle for financing.
no.2
Financing red lines for infrastructure projects
First, the basic red line
There are 4 basic red lines, and 32 of the 36 are derived from these 4 points, which belong to the most basic principles and bottom lines.
1.State organs must not be guarantors.
State organs shall not be guarantors, except for those who have been approved to use loans from foreign countries or international economic organizations for on-lending. 1995.10.01 Guarantee Law
2.Local governments at all levels and their subordinate departments, institutions and institutions shall not provide guarantees for financing platforms in the form of state-owned assets or other direct or indirect forms
Except as otherwise provided by law and the government, local governments at all levels and their subordinate departments, institutions and institutions that mainly rely on financial appropriations to subsidize public institutions shall not provide guarantees for the financing activities of the financing platform company in the form of fiscal revenue, state-owned assets of administrative institutions and other units, or any other direct or indirect form. 2010.06.10 Guo Fa [2010] No. 19 Notice on Issues Concerning Strengthening the Management of Local ** Financing Platform Companies
3.** Shall not borrow through enterprises and institutions, shall not raise debts or provide guarantees in any form in disguise, and shall not raise debts beyond the statutory limit.
1. Clearly delineate the boundary between ** and enterprises, and **debts can only be borrowed through ** and its departments, and cannot be borrowed through enterprises and institutions.
2 ** Bear the relevant liabilities such as franchise rights, reasonable pricing, and financial subsidies for the investor or SPV in accordance with the agreed rules and in accordance with the law, and shall not bear the debt repayment liability of the investor or SPV.
The scale of local ** debt shall be subject to quota management, and local ** debt shall not exceed the approved limit.
3. Local governments and their subordinate departments shall not borrow debts in violation of laws and regulations outside the budget.
4 (Locality** and its subordinate departments) shall not provide guarantees for the debts of any unit or individual in any way in violation of the law.
5 (Localities, ** and their subordinate departments) shall not interfere with the normal business activities of financial institutions and other institutions in violation of regulations, and shall not compel financial institutions to provide ** financing.
2014.09.21 Guo Fa [2014] No. 43 "Opinions on Strengthening the Management of Local Debts".
4.Localities** and their subordinate departments can only borrow in the form of compliant issuance of bonds, and may not raise debts or provide guarantees in any other way.
1. The budget approved by the people's congress shall not be adjusted except through legal procedures. The expenditures of all levels, departments and units must be based on the approved budget, and those not included in the budget shall not be spent.
2 Except for the provisions of the preceding paragraph (part of the funds necessary for construction investment in the budget of provinces, autonomous regions and municipalities directly under the Central Government approved by *** may be raised by issuing local ** bonds and borrowing debts within the limit determined by ***), the local government and its subordinate departments shall not borrow debts in any way.
3. Except as otherwise provided by law, the local government and its subordinate departments shall not provide any guarantee for the debts of any unit or individual in any way.
The approved budget adjustment plan shall be strictly implemented at all levels. Without the procedures provided for in Article 69 of this Law, no decision on budget adjustment shall be made at all levels.
2015.01.01 Budget Law
Second, the red line of financial institutions
This section has11 red linesIt is a red line that financial institutions cannot cross when providing funds for infrastructure projects.
1.Financial institutions are not allowed to lend without stable cash flow as repayment**.
2.Financial institutions shall not lend to local governments and their subordinate departments and financing platforms in violation of regulations, and shall not accept guarantees from ** and their subordinate departments in violation of regulations.
3.Local governments shall not transfer land in violation of laws and regulations and carry out land financing in violation of regulations.
4.Localities** shall not bear the responsibility for repayment of major engineering project financing, or provide any form of explicit or implicit guarantee.
5.Financial institutions shall not make loans to land reserves or borrow debts in the name of land reserves.
6.Banking financial institutions shall not violate the rules of the new financing platform loans, strictly prohibit the acceptance of local guarantees, shall not be through various ways to violate the new debts.
7.Financial institutions shall not accept any form of guarantee such as guarantee letters, commitment letters, and comfort letters for financing the financing platform. It is not allowed to raise debts in disguise by setting up **investment** in violation of regulations, carrying out PPP projects in violation of regulations, etc.
8.The purchase of services shall not be carried out in violation of regulations, and the projects, goods, and financing shall not be included in the scope of the purchase of services, and the purchase of services shall not be implemented outside the budget.
9.State-owned financial enterprises, commercial banks, trust companies, insurance institutions and other financial institutions shall not provide financing to local financing platforms in violation of regulations, shall not accept guarantees from local financing platforms in violation of regulations, and shall not provide financing to local financing platforms in disguised form in the form of clear shares and actual debts, guaranteed principal and returns, commitment to repurchase investment principal, multi-layer nesting, capital pools, illegal PPP, etc.
10.Financial institutions shall not blindly withdraw, pressure or suspend loans, and shall prevent the rupture of the capital chain of existing implicit debts and ensure the reasonable financing needs of financing platform companies.
11.Financial institutions carrying out implicit debt swaps shall not replace debts where the creditor-debt relationship is unclear, the corresponding assets are missing, and the project is not financially sustainable.
3. The red line of corporate behavior of financing platforms
This13 red linesIt is a specification proposed for financing platforms, which explains the reason why the political credit project is reliable from one side.
1.The financing platform shall be cut from the financing platform, and public welfare projects shall not be financed through the financing platform, and the financing platform shall not borrow through the financing platform, and the financing platform and the financing platform shall bear their respective debts.
2.Public welfare assets such as schools, hospitals, parks, office spaces, and public institution assets shall not be used as capital injection into financing platforms or urban investment enterprises applying for bond issuance.
3.All levels of ** and their subordinate departments, institutions, and public institutions shall not provide guarantees or credit enhancement for financing platforms in state-owned assets or any other direct or indirect way.
4.Public services that should be directly provided by ** and are not suitable for social forces to undertake, as well as services that do not fall within the scope of **'s duties, must not be purchased from social forces.
5.Financing platforms that are not self-solvent shall not issue bonds, and shall not provide guarantees or disguised guarantees for them.
6.The reserve land shall not be injected into the financing platform company as an asset, and the financing platform shall not use the expected income from the transfer of reserve land as debt repayment funds, and shall not use financial funds, state-owned assets to offset (pledge) or as debt repayment**, and the local government and its subordinate departments, public welfare institutions and people's organizations shall not issue guarantee letters, commitment letters, comfort letters and other forms of guarantee for the financing of the financing platform company.
7.** Social-private partnership projects shall not adopt the BT method, the debts of the project company shall not be handed over to **, the equity of the shareholders of the social capital party shall not be repurchased, and the current ** purchase service expenditure shall not be substituted for the long-term payment liability of PPP projects.
8.Enterprises that declare bonds shall not have part-time party and government officials in the enterprise, shall not include public welfare assets and reserve land use rights in enterprise assets, bonds shall not be linked to local credit false statements, misleading publicity, local ** and its subordinate departments shall not provide guarantees for bonds or bear debt repayment responsibilities, pure public welfare projects shall not be used as fund-raising projects to declare bonds, must take local financial affordability and medium and long-term financial sustainability as an important constraint. Resolutely put an end to possible financial support that is separated from local financial resources.
9.Local governments and their departments shall not directly or promise to repay the foreign debts of local state-owned enterprises with financial funds, and shall not provide guarantees for the issuance of foreign debts by local state-owned enterprises.
10.A financing platform company that has not yet resolved its existing implicit debts shall not be used as a major project unit for the issuance of special bonds and supporting financing of projects.
11.**Investment projects that do not meet the prescribed construction conditions shall not start construction, and ** investment projects shall not be advanced by the construction unit for construction.
12.The project unit shall not use the following funds as the project capital: (1) the debt funds of the project legal person.
2) If the funds raised by the financial instruments of equity instruments have any of the following circumstances: before the repayment of the current debt funds such as principal and interest repurchase commitments and back-up guarantees, dividends or proceeds may be paid in priority over other debt funds at the time of liquidation.
3) Shareholder loans that do not comply with state regulations.
4) "Famous stocks and real debts". To raise capital for investment projects, it is not allowed to increase local hidden debts in violation of regulations, and it is not allowed to violate the relevant requirements of the state on the asset-liability ratio of state-owned enterprises. No arrears of project payments.
13.Special bonds shall not be used for the following purposes:
1) The funds of the new special bonds will be used to replace the existing debts.
2) It is absolutely forbidden to engage in image projects and face projects.
3) The new special bond funds shall not be used for recurrent expenditures in accordance with the law, and it is strictly forbidden to use them for the payment of wages, unit operating expenses, pensions, interest payments, enterprise subsidies, etc.
4) It shall not be used for land reserve projects, industrial projects that can be fully commercialized, real estate-related projects, and shantytown reform (except for stock projects).
Fourth, PPP projects
The PPP project is not a pure political credit project, it can be said to be a fake political trust, because the participants of the project are not only first-class institutions, but also social capital (state-controlled enterprises, private enterprises, mixed-ownership enterprises and other types of enterprises). There are strict red lines for financing such projects:
1.PPP project entities or other social capital shall not obtain unqualified land use rights or disguised land income in violation of regulations, shall not participate in land acquisition and storage and pre-development as the main body of the project, and shall not be linked to land transfer income and repayment responsibilities, and shall not borrow unqualified land for financing.
2.When participating in PPP projects or setting up investments, local governments shall not promise to repurchase the investment principal of the social capital party, shall not bear the loss of the investment principal of the social capital party in any way, shall not promise the minimum return to the social capital party in any way, and shall not add additional terms to any equity investment method such as limited partnership** and shall raise debts in disguise.
3.Projects that have not passed the financial undertaking demonstration shall not adopt the PPP model, and the social capital shall establish a project company separately, and shall not bear the responsibility for equity investment expenditure, and shall not bear the responsibility for operating subsidy expenditure in the user-paid PPP model, and the annual PPP project budget expenditure responsibility shall not exceed 10% of the general public budget expenditure.
4.**Do not participate in PPP projects that only provide financing for the project and do not participate in the construction or operation.
5.PPP projects shall not directly designate a third party to hold the shares of the social capital party without the procurement procedure, state-owned enterprises or local financing platform companies shall not sign PPP project contracts on behalf of the first party, local ** financing platform companies shall not act as social capital parties, and the contract shall not stipulate that the first party or its designated entity shall repurchase the principal of social capital investment, shall not weaken or exempt the investment, construction and operation responsibilities of social capital, and shall not promise a minimum return on investment or provide income difference to social capital to make up for the difference. It shall not be agreed that the responsibility for the operation of the project shall be contracted back to the representative of Party ** or a third party other than the private party shall be designated to bear it.
6.PPP projects shall not be locked and solidified in advance by lowering assessment standards, and areas with fiscal expenditure responsibilities accounting for more than 5% shall not be newly paid projects, and the new paid projects shall be bundled and packaged as a small number of user payment projects, and the project content is not substantially related, and the proportion of user payment is less than 10% shall not be put into storage, and the newly signed projects shall not be arranged from the ** budget and state-owned capital operating budget PPP project operating subsidy expenditure.
7.PPP projects that fail to perform the procedures for approval, approval, filing, feasibility demonstration and review in accordance with laws and regulations shall not start construction.
8.PPP projects that have one of the following circumstances shall not be put into storage:
1) It is not suitable to adopt the PPP model for implementation.
2) Preliminary preparations are not in place.
3) Failure to establish a pay-for-performance mechanism.
Items that fall under the circumstances of (1) and (2) above shall not be put into storage or have one of the following circumstances shall be cleared:
1) Failure to carry out "two arguments" in accordance with regulations.
2) It is not appropriate to continue to implement the PPP model.
3) Does not meet the requirements of standard operation.
4) Constitutes a debt guarantee in violation of laws and regulations.
5) Failure to follow provisions to disclose information.
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