National Development and Reform Commission of the People’s Republic of China Decree of National Development and Reform Commission of the People’s Republic of China No. 28 Temporary Measures on Management of Loan Investment Project of International Financial Organizations and Foreign Governments were Minister of NDRC Ma Kai February 28, 2005 Temporary Measures on Management of Loan Investment Project of International Financial Organizations and Foreign Governments Chapter I General Principles Article 1 For the purposes of enhancing the management of loan investment project of international financial organizations and foreign governments Article 2 These Measures apply to the management of loan borrowed from International Bank, Asian Development Bank, International Agricultural Article 3 All domestic enterprises, organs and organizations may apply for borrowing foreign loan. Article 4 If foreign loan is subject to foreign debt of state sovereignty, it should be managed according to government invested funds. Foreign Chapter II Plan of foreign loan selective project Article 5 Plan of foreign loan selective project is the basis of the project to carry out works with foreign countries. The foreign loan-borrowing To the projects that are not brought into line with foreign loan selective project, all departments of the State Council, local governments Article 6 Development and Reformation department of the State Council should work out plan of foreign loan selective project in accordance with Plans of loan selective projects of International Bank, Asian Development Bank and Japanese government’s Japanese yen should be put Article 7 Competent industrial department of the State Council, provincial development and reformation departments, enterprise groups specifically If the counterpart funding of the projects applied for by competent industrial department of the State Council is arranged by local Article 8 The materials that apply for selective projects brought into the line with foreign loan plan include following information: 1. Brief description of the project; 2. The necessity of the project construction; 3. The categories and countries of borrowing foreign loan that is planed to apply for; 4. Amount and purpose of the loan; and 5. Responsibility of loan repayment. Article 9 If the projects that have been brought into the line with the selective project plan of international financial organizations’ loan As for the projects that are brought into line with other loan selective project plans of foreign government, if it needs to adjust Article 10 If the projects that were approved originally to use other funds plan to apply for using foreign loan, or the projects that have been Article 11 Development and reformation department of the State Council and provincial development and reformation departments take part in related Article 12 The projects brought into line with selective project plan of foreign loan should go through the formalities of examination, approval, 1. The projects that the Central government borrows and repays loan centrally should be managed as Central Government’s direct investment 2. The projects that the loan is provided and repaid by provincial governments should be managed as provincial governments’ direct investment 3. The projects that the loan is repaid by funds-using organizations themselves and not be guaranteed by the government should be managed Chapter III Application report for project funds Article 13 After the projects are brought into line with foreign loan selective project plan and the formalities of approval, verification or Application report for project funds should be reported to development and reformation departments of the State Council for approval Application reports for project funds of competent industrial department of the State Council, enterprise groups specifically designated Article 14 Project feasibility report approved by the State Council and development and reformation department of the State Council should include Article 15 Project funds application report should include following information: 1. Brief survey of the project, including the scope and content of the project construction, total investment, capital funds, foreign 2. Source and requirements of foreign loan, including foreign loan organs or countries, repayment term, grace period, interest, commitment 3. Project progress in working with foreign countries; 4. Scope of using the loan, including funds arrangement of loan in civil engineering, equipment, materials, consultation and training; 5. Complete purchasing list and purchasing ways of equipment and materials, including specifications, quantities and unit price of main 6. Conclusion of economic analysis and financial review; and 7. Responsibilities of loan repayment and guarantee, source of repayment funds and repayment plan. Article 16 Following materials should be attached to application report for project funds: 1. Project approval document (approval document for project feasibility report, approval document for project application report or project 2. The loan projects of international financial organizations and Japan Bank for International Cooperation (JBIC) should provide the 3. When competent industrial department of the State Council puts forward the application report for project funds, if the project needs 4. Foreign loan projects applying for selective purchasing should provide the comparison report of requirements of foreign loan, proportion Article 17 Development and reformation department of the State Council approves the application report for project funds according to following 1. Accord with national policy of utilizing foreign loan and the regulations of using it; 2. Accord with rules of foreign loan selective project; 3. The project has gone through the formalities of approval, verification or record in accordance with rules; 4. The responsibility of foreign loan repayment and guarantee is clear. Source of fund repayment and repayment plan have been implemented; 5. Foreign loan organs have made preliminary promise of project loan. Article 18 After the application report for project funds have been approved, if there are something changes in the content of the project construction, Article 19 The approval documents of the State Council and development and reformation department of the State Council on project feasibility Article 20 To the projects that feasibility report or funds application report have not been examined and approved by the State Council and development Article 21 Within 2 years from the approval day of the application report for project funds, if the project has not concluded the agreement of Chapter IV Management of Project Execution Article 22 Development and reformation department of the State Council and provincial development and reformation departments guide and coordinate Article 23 If foreign loan project has remaining money, funds-using organizations should handle remaining money cancellation formalities in time, If the remaining money is still used to perfect original project construction, plan of using it should be worked out according to Article 24 Loan conversion organs responsible for foreign loan conversion should convert foreign loan of the project in accordance with the approval As for the project that foreign loan is repaid or repayment guarantee is provided by the governments at all levels, loan conversion Article 25 Project funds using organizations should perform the responsibility of foreign loan repayment in accordance with laws, register foreign Article 26 Development and reformation department of the State Council should supervise and examine the execution of the project and provincial Article 27 In order to assure funds repayment and avoid evading debt, funds-using organizations that have not repaid all foreign loan should Chapter V Supplementary Articles Article 28 Provincial development and reformation departments should formulate corresponding management measures in accordance with the provisions Article 29 The interpretation of these Measures is vested in NDRC. Article 30 These Measures come into effect as of March 1, 2005. The provisions and other normative documents about management of foreign loan |
National Development and Reform Commission of the People’s Republic of China
2005-02-28