INTERIM MEASURES FOR THE IMPLEMENTATION MANAGEMENT OF STATE-INVESTED LAND DEVELOPMENT RECTIFICATION PROJECTS

The Ministry of State Land Resources

Notice of the Ministry of State Land Resources Concerning Printing and Issuing on Interim Measures for the Implementation Management
of State-Invested Land Development Rectification Projects

Guo Tu Zi Fa [2000] No. 122

The ministries of state land resources of every province, autonomous region and municipality directly under the Central Government
(the ministry of state land environment resources, bureau of state land resources and housing, bureau of housing and land resources,
bureau of state land resources and planning), bureau of state land resources of Xingjiang Production and Construction Group:

In order to safeguard the smooth implementation of the state-invested land development rectification projects and to complete fully
the tasks of project construction, Interim Measures for the Implementation Management of State-Invested Land Development Rectification
Projects studied and formulated by the ministry, are hereby printed and issued, please carry out according to the local actual situation
of each place.

The Ministry of State Land Resources

April 16, 2003

Interim Measures for the Implementation Management of State-Invested Land Development Rectification Projects

Chapter I General Provisions

Article 1

In order to safeguard the smooth implementation of the state-invested land development rectification projects and to complete fully
the tasks of project construction, the Measures are hereby formulated in accordance with the provisions of the relevant laws, regulations
and policies.

Article 2

The Measures are applicable to the state-invested land development rectification projects (hereinafter referred to as the “projects”),
including key projects, model projects and subsidy-based projects.

Article 3

The implementation management of projects sticks to the following fundamental principles:

(I)

Principles of consistence between tights, duties and obligations;

(II)

Principles of openness, justice and fairness;

(III)

Principles of simplified procedures and enhancement of efficiency.

Article 4

The Ministry of State Land Resources adopts uniform supervision and management of project implementation, and local competent administration
of state land resources above county level is in charge of the supervisions and management of the project implementation sources
in corresponding administrative divisions.

Article 5

The undertaking unit of the projects shall organize for project implementation, and adopt the responsibility of the legal person of
the project.

The management and technological personnel of the undertaking unit of the projects shall meet the demands for project implementation.

Article 6

The project implementation adopts the legal person system of the project, bidding system, engineering supervision system, contracting
system, and announcement system.

Chapter II Preparation for Implementation

Article 7

Upon assignment of the project planning and budgets by the Ministry of Finance and the Ministry of State Land Resources, the competent
administration of state land resources of county level shall submit petition to the local government for establishment of project
implementation leading groups in charge of coordinating and settlement of the relevant issues during project implementation.

The competent administration of state land resources of county level shall according to the relevant provisions verify the land categories,
areas, demarcation, ownership, and compensation schemes involved in the project, and ensure that the land categories and areas as
demarcation are clear and that the ownership is legitimate free of disputes over the adjustment schemes of the ownership and compensation
schemes, thus creating favorable conditions for the implementation.

Article 8

The undertaking unit of projects shall carry out full on-site management on the project implementation and do well in the following
preparatory works:

(I)

Organizing the advisory services of organizing bid invitation, and equipment and material purchase;

(II)

Organizing bid invitation and bidding for the projects, reaching the contracted engineering agreements and authorizing for engineering
supervision management;

(III)

Preparing the annual implementation programs of the projects, the construction schedule planning and funding planning;

(IV)

Organizing and preparing the designing diagrams for project implementation; and

(V)

Establishing the relevant systems on project schedule, quality and fund utilization management.

Article 9

Upon completion of the preparation for the project implementation, the undertaking unit of projects shall summarize the circumstances
relating to the project implementation and put forth the application report on start of the projects, upon review and ratification
of which by the competent administration of state land resources of county level where the project is located the project implementation
may start.

Article 10

The undertaking unit of projects shall publish project announcements for supervisions y the mass and the society.

The contents of the project announcement shall include: project name, construction site, overall construction scale, newly increased
tillage areas, total investment of the project, construction term, land ownership, the undertaking unit of the projects, the implementation
unit of the projects, the supervisory unit of the projects, and the designing unit of the projects, etc.

Article 11

In case of any discrepancy from the relevant unit and individual over the project implementation, the undertaking unit of projects
shall be responsible for the solutions thereof; and incase of failure to solve the discrepancy, petitions should be submitted for
solution by the project implementation leading group. In case of any material issues, the competent administration of state land
resources of county level shall report to the superior competent administration of state land resources for investigation and solution.

Chapter III Engineering Implementation

Article 12

Upon start of the engineering, the undertaking unit of projects shall set up the on-site office meeting system during the project
implementation, where the implementation unit, the engineering supervisory unit, and the designing unit may be convened for coordination
and solution of the problems in implementation progress, project quality, fund utilization, and the execution of the project planning
and designing during the project implementation.

Article 13

The implementation unit of projects shall carry out the construction according to the standards of project planning and designing,
implementation designing and implementation technologies, and be responsible for the returns and repairing in case of quality issues
or unqualified construction projects upon examination of project completion. The implementation unit of projects shall establish
the quality responsibility system, and identify the managers of the engineering projects, the persons in charge of technological
issues and implementation management. In case of any errors in the planning design and the implementation designs during the implementation,
the implementation unit of projects shall timely put forth opinions and suggestions.

Article 14

The engineering supervisory unit of the projects shall carry out the supervisions with responsibilities borne in terms of engineering
quality on behalf of the undertaking unit of projects in compliance with laws, regulations and the relevant technological standards,
planning and designing and the relevant contracts. The engineering supervisory unit of the projects shall assign the supervisors
of eligible conditions to the construction site, who shall then according to the requirements of the engineering supervision standards
carry out supervision on the construction engineering of the projects, control the investment, term and quality of the project construction.

Upon completion of single unit of projects, the engineering supervisory unit of the projects shall sign opinions attached. Without
the opinions on qualification signed by the engineering supervisory unit of the projects, the undertaking unit of projects shall
not appropriate the engineering fund, and thus the implementation unit of projects may not proceed to the following process.

Article 15

The designing unit of projects provides consultation and instructions on the relevant planning and designing during the project implementation;
and in case of alteration of the planning and designing, modifications should be made as per the requirements.

Article 16

During the implementation, various units shall strictly execute the project planning, the expenditure budget and planned designing.
In case of alteration of the planned designing required, the following provisions should be followed:

(I)

If the adjustment does not involve the location of the project construction, overall construction scale, newly added tillage areas,
or budget of project expenditures, the undertaking unit of projects may make investigate and settle it at its own discretion;

(II)

If the adjustment involves the location of the project construction, overall construction scale, newly added tillage areas, or budget
of project expenditures, the undertaking unit of projects shall report to the original approval authority for ratification.

Article 17

In case of adjustment of the ownership of land due to the alteration of planning and designing, the original ownership adjustment
schemes should be supplemented and explained, which shall then be reported for determination by the local competent administration
of state land resources of county level.

Chapter IV Preparation for Acceptance Examination upon Project Completion

Article 18

Upon completion of the tasks of the project construction, the undertaking unit of projects shall do well in self-examination on the
project construction according to the provisions of the contract.

The following conditions shall be available for self-examination of the project construction:

(I)

The implementation unit of projects has submitted the delivery report, completion drawing of project and warranty letter of the project;

(II)

The engineering supervisory unit of the projects has submitted the supervision report;

(III)

Complete technological archives and implementation management materials.

Article 19

The undertaking unit of projects shall within a month after self-examination of the project submit the application report to the local
competent administration of state land resources of county level for self-examination of the project completion, arrange the relevant
materials and make preparations for the acceptance examination upon completion of the project.

The acceptance examination upon completion of the project shall be executed in compliance with the relevant provisions of the Interim
Measures for Acceptance Examination upon the Completion of the State-invested Land Development Rectification Projects (GuiTuZiFa
[2003] No.21).

Article 20

The undertaking unit of projects shall according to the relevant provisions timely collect and arrange the relevant documents, materials
and graphics during the project implementation, set up and perfect the project archives, and timely submit the project archives to
the local competent administration of state land resources of county level for filing after the acceptance examination upon completion
of the project.

Chapter V Supervisions and Inspection

Article 21

Various levels of the competent administration of state land resources shall set up the supervisions and inspection system with the
project progress, engineering quality, capital utilization, and construction of honest government, thus, investigating and solving
material issues during project implementation.

Article 22

Various levels of the competent administration of state land resources shall according to the relevant laws and regulations correct
the misbehaviors during the project implementation and investigation on the responsible persons in breach of law and disciplines.
Those involved in serious circumstances that constitute a crime shall be transferred for prosecution of criminal responsibilities
by the judicial organs according to the relevant laws.

Article 23

Any unit and individual is enpost_titled to make reports, petitions or claims on the quality incidents and quality defects of the construction
engineering of the projects.

Chapter VI Supplementary Provisions

Article 24

The implementation management of the land development rectification projects invested by local government shall be executed by reference
with these Measures.

Article 25

The funding management for project implementation shall be executed in compliance with the relevant provisions of The Interim Measures
for Funding Management of Land Development Rectification Projects (GuoTuZiFa [2000] No. 282).

Article 26

The Measures shall come into force as of the date of promulgation.