The Ministry of Power Industry Interim Provisions for Submission and Approval Procedure on Electric Power Project Invested Directly by Foreigners DianJi [1996] No. 732 December 9, 1996 Chapter I General Provisions 1. In accordance with Law of the People’s Republic of China on Chinese-foreign Equity Joint Ventures, Law of the People’s Republic of 2. Electric power projects invested by foreign businessmen must conform to the national enterprise policy, and are placed into the national 3. The procedures for the submission and approval of electric power projects invested by incorporate enterprises aboard, which are established 4. The provision is confined to the electric power projects invested by Chinese-foreign JVs, Chinese-foreign cooperative enterprises 5. The provision isn’t apply for the projects that the Chinese side utilizes stock capital to cooperate with foreign businessmen by the 6. The nuclear projects invested directly by foreign businessmen must more be in conformity with Provisions for the Submission and Approval Chapter II The Procedure of Submission and Approval on Chinese-Foreign JV Projects and Chinese-Foreign Cooperative Projects 7. From a letter of proposal of a project to building cooperative enterprises, Chinese-foreign Joint Venture projects and Chinese-foreign (1) Apply for a letter of proposal of a project; (2) Apply for a feasibility study report; (3) Apply for building Chinese-foreign jointly owned enterprises 8. Apply for a letter of proposal of a project On promise of completing a preliminary feasibility study report and examined by the province-level electric administrative department 9. the enclosure that the letter of proposal of the cooperative project requires is as the same as one of a domestic project, but need (1) The jointly owned letter of intent signed by each side of the jointly owned enterprise; (2) the credit certificate and investigation condition. Before both side of the jointly owned enterprise formally sign the letter of intent, the project must be examined by the province-level 10. Apply for the feasibility study report of a project After the State Planning Commission or the State Economic and Trade Committee replies the letter of proposal of project, the authorized After the feasibility study report of the project is examined and passed by the department concerned (now referring to Electric Power After examining, Ministry of Electric Industry hands over it to the State Planning Commission or the State Economic and Trade Committee 11. The feasibility study report must at least include the following files: (1) The replying files given by the State Planning Commission and the State Economic and Trade Committee on the letter of proposal of (2) The examining opinions given by the electric administrative departments at different levels or the authorized department concerned (3) The examining files given by the department concerned under the Central Government and the province-level local government concerning (4) The preliminary designing files designed firstly (concept design files) could meet the requirements of the bargaining book of equipments, (5) the files of invitation for bid and discussion for bid of equipments including parameter, function and price, etc.; (6) the contracted files of invitation for bid and discussion for bid given by the engineering construction unit; qualification and achievement (7) the implementary files on the financing method and financing condition at broad of projects agreed by Ministry of Electric Industry (8) Capital fund of project and a supporting domestic capital in financing (including the supporting project of power transmission and (9) The concrete acceptance files and replying files on the electric price and sales price of power grids of the jointly owned projects (10) The jointly owned protocol and initial contracts of purchase and sale of electric power that is examined and agreed by Ministry of (11) The copy of the business license, certificate of legal representative, financing chronology and certificate of investment of each (12) There are planning views for the immigrant settlement of a reservoir that the province-level locate department gives concerning hydroelectric 12. Apply for establishing Chinese-foreign JVs After the feasibility study report of project is ratified officially, it is reported to Ministry of Electric Industry by the province-level The project enterprise that is allowed should apply to industrial and commercial administration for registration, and take out a business Chapter III Procedure of Submission and Approval on Solely Foreign-owned Projects 13. From starting work to establishing foreign-owned enterprises, the project invested by foreign business exclusively is ratified as (1) Apply to a preliminary application; (2) Apply to a application for a project; (3) Apply to build a exclusively foreign-owned enterprise. 14. Apply to a preliminary application Foreign businessmen submit a preliminary application for the project invested by foreign businessmen exclusively to the local province-level After the local province-level local department and the local electric administrative department examines and agrees, the preliminary 15. the encloses with the preliminary application are as follows: (1) the examining opinions that the province-level local government, the province-level electric administrative department, the electric (2) Certificate and investigation of foreign capital credit. 16. Apply to a application for project After the State Planning Commission or the State Economic and Trade Committee ratifies the preliminary application officially and After the province-level local government and the local electric administrative department pass examining and approving, the report After examining, Ministry of Electric Power hands over it to the State Planning Commission or the State Economic or Trade Committee 17. Files that is submitted with the application for the project must include as follows: (1) The feasibility study report examined by Ministry of Electric Power or the authorized department concerned; (2) The replied files given by the State Planning Commission or the State Economic and Trade Committee concerning the application for (3) The examining views by the electric administrative departments at different levels on the application for the project; (4) The replied files given by the department concerned under the Central Government and the province-level local government on land, (5) The replied files of the construction plan given by the electric administrative departments concerned at different levels concerning (6) The concrete acceptance files and the replied files given by the local province-level administrative department of commodity prices (7) Initial a contract of purchase and sale examined by Ministry of Electric Power Industry; (8) Protocols and contracts on combining electric network, fuel, transportation, land, water, the usage of other public facilities and (9) the list of the enterprise legal representative or the number of the board of directors; (10) The copy of the business license of investors, certificate of the legal representative, financing chronology and application for investment; (11) Articles of enterprises; (12) If two or above foreign businessmen jointly apply for establishing exclusively foreign-owned enterprises, should take out the copy (13) Detailed list of import goods (14) Implementary files of construction capital given auxiliarily. 18. Apply for establishing exclusively foreign-owned enterprises After the application for project is approved, foreign businessmen could apply to the organ who has approval rights according to the The project enterprise who is approved should apply to industrial and commercial administration for registration, and take out a business Chapter IV Supplementary Provisions 19. At present Ministry of Electric Power namely refers to Ministry of Electric Power Industry in the provision. The province-level electric administrative department namely refers to Electric Power Industry Bureaus of province, municipality directly At the moment the electric administrative department in charge of power grids among provinces namely is the electric administrative 20. The provision is explained by Ministry of Electric Power Industry. 21. The provision shall enter into force as of the date of formal issuance, at the same time, the old relevant provisions is expired. Enclose Basic Requirements of the Main Application Files Letter of intent: The basic condition, method of investment, jointly owned mode, amount of capital invested, structure of capital fund, financing condition, Letter of intent couldn’t have exclusiveness and clauses that hinder the enforcement of project in the further just express the intent A preliminary application on construction projects invested by foreigners exclusively: Aim of enterprise, scope and scale of operation, the kinds of product and technological and economical indexes, the usage of technology A letter of proposal for a project: 1. Sketch necessity of construction of a project according to the local economic status, present situation and forecasting of load. “Big 2. Necessity of absorbing foreign capital, the basic condition each side of cooperation, structure, rights and interests, operation, 3. Mode and scale of construction, and source of equipments. 4. Construction conditions: Explain the questions on the site plan of the plant, water resource, fuel, transportation, site of ash, environmental 5. Estimate and source of investment, a preliminary economic evaluation. Estimate static total investment and dynamic total investment 6. Business Administration. A feasibility study report of a thermal electric project: 1. Necessity of construction Analyze the local electric network of the project or the load status of the using power area according to the local economic status About “Big for small” technical transformation and cogeneration project, that’s more, explain the social and economic effectiveness 2. Necessity of the usage of foreign capital The reason that foreign capital is used, jointly owned mode or optimization of the selection of exclusively foreign-owned mode, standard 3. Mode of construction, scale, facilities and source General capacity of the electric power plant, scale for the period, mode of construction, settlement of schedule, selecting standard Type of equipment (quality of equipment, advanced level of technology, running achievement, price, service, etc., all of these have Parameter, capability, mode and construction condition of heat network should be explained on cogeneration project. 4. Construction conditions The site of a plant: Make sure geographic location of electric power plant, earthquake, geology, landforms and hydrologic condition Water resource:Explain the condition of the local water resource, make sure water resource used by the plant, method of taking water Fuel:Define types of machine set and amount used, make sure source of fuel and supply capability, the written files on supplying fuel, Transport:The kinds of transport conditions of plant, the method of transport and route of equipment and fuel, transport equipment Get rid of ash and site of ash: amount of emission of ash and method of ash elimination, location of ash elimination, age limit of Environmental protection:Environmental condition of the local electric plant, the kinds of environmental facilities and indexes, construction Insert system and project of issue: voltage grade, return circuit, line length of the electric system inserted, the scale of newly The written files on the system and its plan inserted by the plant invested by jointly owned enterprises (or exclusively foreign-owned 5. Estimate and source of investment Estimate static total amount of investment according to the last year price level (including to the supporting transmission and transformation Define the proportion of capital funds in total amount of investment, share owned by each side of investment, method of investment, Amount, source and condition of loan at both home and abroad (such as interest, grace period, period of repayment and method of guarantee, 6. Economic evaluation Economic evaluation is enforced strictly according to Guiding Views of Economic Evaluation Work on the Strengthening of Electric Foreign 7. Operating management Make sure construction of projects, operation, management, supervisor mode of management and dispatch, define distribution of advanced A feasibility study report of a hydroelectric power project: Any content that has similarity with thermal electric project such as deep requirements basing on the feasibility study report of In addition, there are complementary explanations in the following aspects: 1. Explain affect and the comprehensive efficiency of exploration from the geographical location of the plant concerning necessity of 2. Explanations on construction scale: (1) Normal retaining level, backwater level, adjustment of reservoir capacity, adjustment of function. (2) General installed capacity, installed numbers, single-machine capacity, type of machine, guaranteed out-put, annual generated energy, (3) Pivotal composition, arrangement, type and scale of dim and plant building, etc. 3. Construction condition: (1) Hydrology: drainage area controlled by dim address, annual average flow, yearly total flow, designing flood discharge, checking flood (2) Geology: construction geology, hydrological geology, basic earthquake intensity, etc. (3) Immigrants of reservoir: drowned index, immigrant settlement plan and enforcement condition, etc. (4) Building materials. (5) Engineering amount of main body and schedule settlement of construction. 4. list of purchasing equipment by the method of using foreign capital. 5. Economic evaluation is analyzed and calculated according to Interim Provisions of Financial Evaluation on Hydroelectric Construction 6. Speciality index table of a implementray project, engineering drawing of site, pivotal floor plan, etc. A protocol of jv or a cooperative protocol: The above-mentioned text basing on letter of intent is implemented, revised and enriched according to views of examination and approval Contracts of jointly owned enterprises: Refer to Article 14 in Regulations for the Implementation of the Law of the People’s Republic of China Concerning Chinese-Foreign Articles of enterprises: Refer to Article 16 in Regulations for the Implementation of the Law of the People’s Republic of China Concerning Chinese-Foreign Application for building exclusively foreign-owned enterprises: Refer to Article 15 in Rules of the Implementation of the Law of the People’s Republic of China Concerning exclusively Foreign-Owned Articles of exclusively foreign-owned enterprises: Refer to Article 16 in Rules of the Implementation of the Law of the People’s Republic of China Concerning Exclusively Foreign-Owned |
The Ministry of Power Industry
1996-12-09