The Government Investment Management Measures of Qingdao has been approved at the 113th executive meeting of the 16th Session of the People’s Government of Qingdao and is now published and will be implemented from March 1, 2021.
Mayor: Zhao Haozhi
January 27, 2021
Government Investment Management Measures of Qingdao
Chapter I General Principles
Article 1 In order to regulate the investment behavior of government, establish and improve the scientific government investment decision-making procedure and organizational implementation procedure, improve the government investment efficiency and stimulate the social investment vitality, these Measures are formulated in accordance with the relevant provisions of the "Government Investment Regulations" and the actual situation of Qingdao.
Article 2 These Measures shall apply to the construction activities such as new construction, expansion, reconstruction, and technological transformation with investment in fixed assets financed by the municipal budget.
Article 3 The municipal development and reform department is the department in charge of investment in the municipal government, responsible for government-invested project reserve, investment plan preparation, project approval as well as supervision, coordination and guidance of the project implementation.
Departments of finance, natural resources and planning, ecological environment, housing and urban-rural construction, transportation, water management, marine development, gardening and forestry, emergency response, auditing and state-owned assets supervision and management shall do assume the corresponding duties in the government investment management.
Article 4 The government investment shall follow the principles of scientific decision-making, standardized management, focus on performance, openness and transparency.
Government investment funds shall be invested in social welfare services, public infrastructures, agricultural and rural areas, ecological environment protection, major scientific and technological progresses, social management, national security and other public sector projects where the market cannot effectively allocate resources, mainly in non-commercial projects.
Article 5 The government investment shall be adapted to the level of economic and social development and the fiscal revenue and expenditure.
Government investment funds shall be restricted by the budget. Any department of the municipal government and related units shall not illegally borrow debts to raise government investment funds.
Article 6 Government investment funds are arranged according to the projects, mainly by direct investment; for operating projects that really need support, the mode of capital injection is mainly adopted, and investment subsidies, loan interest discounts, etc. may also be adopted as appropriate.
Article 7 The construction of government-invested projects shall strictly implement the basic construction procedures, go through relevant approval procedures in accordance with the laws, and prohibit simultaneous survey, design and construction.
The construction of government-invested projects shall implement the expert consultation system, the project quality responsibility system, the bidding system, the project supervision system and the contract management system.
Article 8 In principle, non-operating government-invested projects implement the proxy construction system (hereinafter referred to as the "proxy construction system"). For projects that do not implement the proxy construction system, the responsibility system of the project competent department shall be implemented after getting the approval of the municipal government.
Chapter II Decision-making on government investment
Article 9 For projects invested by the government by means of direct investment and capital injection (hereinafter referred to as “government-invested projects”), the project company shall prepare a project proposal, a feasibility study report, a preliminary design and a budget estimate, and report to the municipal development and reform department for approval.
The project company shall strengthen the preliminary work of the government-invested project, ensure that the depth of the preliminary work meets the requirements, and be responsible for the authenticity of the project proposal, feasibility study report, preliminary design and budget estimate and other documents that shall be attached in accordance with the law.
For projects that should be examined and approved by the higher-level development and reform department or the competent department prescribed by the state in accordance with the approval authority, the project proposal, feasibility study report, preliminary design and budget estimate shall be handled by the municipal development and reform department or the relevant competent department.
Article 10 Except for projects involving state secrets, the municipal development and reform department and other relevant departments shall use the online approval and supervision platform for investment projects (hereinafter referred to as the "online platform") and the project codes generated by the online platform to handle the approval procedures for government-invested projects.
The municipal development and reform department and other relevant departments shall use the online platform to list the plans and industrial policies related to government investment, publish the handling procedures and time limits for approval of government-invested projects and provide the project companies with relevant consultation service.
When project-related approval documents, invitation for bids and bidding, public resource transactions, supervision and inspection, post-evaluation, administrative handling, administrative punishment, information disclosure, etc. involve the use of the project name, the project code shall be indicated at the same time.
Article 11 The municipal development and reform department shall, in accordance with the national economic and social development plan, special plans in related fields, industrial policies, etc., review government-invested projects from the following aspects and make the decision of approval:
(1) The necessity of project construction proposed in the project proposal;
(2) The implementation of main construction conditions such as technical and economic feasibility, social benefits and project funding analyzed by the feasibility study report;
(3) Whether the preliminary design and budget estimate meet the approval of the feasibility study report and the requirements of relevant standards and specifications;
(4) Other issues to be examined in accordance with laws, regulations and other provisions.
The municipal development and reform department shall, in conjunction with the relevant competent departments, organize consultation and evaluation. For the municipal government-invested projects that have a major impact on economic and social development or social public interests or in a large scale, the municipal development and reform department shall make the decision of whether to approve on the basis of evaluations by intermediary service institutions, public participation, expert review and risk assessment.
When a government-invested project is not approved, the municipal development and reform department shall notify the project company by writing and explain the reason.
Article 12 For projects included in the annual government investment plan, when applying for project approval, the application documents for approval of the project proposal and the project proposal shall be submitted to the municipal development and reform department. The municipal development and reform department shall conduct a comprehensive review of the project application, and if it meets the conditions of the project upon review, the project shall be approved within the prescribed time limit.
For the projects not included in the annual government investment plan, the application for approval shall be made after getting the consent of the municipal government.
Article 13 After getting the approval of the project application, the project company shall formulate the feasibility study report and submit it to the municipal development and reform department for approval.
When submitting the report for approval, the approval document of the project proposal, the application documents for approval of the feasibility study report, the feasibility study report and the pre-examination opinions on land use (sea use) shall be provided (except for those where the competent authority explicitly states that it’s not necessary to conduct the pre-examination of land use and sea use); for major projects, the social stability risk assessment report and the review opinions shall be submitted; for the projects with the use right of the allocated state-owned land, the site selection opinion shall be submitted.
Article 14 After the feasibility study report is approved, the project company shall prepare a preliminary design and budget estimate, and submit them to the municipal development and reform department for approval. The preliminary design review of large and medium-sized construction projects invested by the government is jointly carried out by the municipal development and reform department and relevant competent departments.
The investment budget estimate approved by the municipal development and reform department is the basis for controlling the total investment of a government-invested project, and shall not be exceeded in principle.
Article 15 If the investment budget estimate proposed in the preliminary design exceeds 10% of that proposed in the approved feasibility study report, the project company shall report to the municipal development and reform department, and the latter may require the project company to resubmit the feasibility study report.
If it is necessary to increase the investment budget estimate due to policy adjustments, price increases, major changes in geological conditions, etc., the project company shall propose the adjustment plan and the sources of funds, and submit them for approval for implementation in accordance with regulations. For projects exceeding the original approved budget by 2 million yuan or more, the project company shall issue an analysis report on the reasons for the excess budget and submit an application for adjustment of the budget. After the municipal development and reform department and the municipal finance department review and agree the application, the project company shall report it to the municipal government for approval before organizing the implementation. For projects exceeding the original approved budget by less than 2 million yuan, the project company shall issue an analysis report on the reasons for the excess budget and submit an application for adjustment of the budget. The implementation shall be organized after the municipal development and reform department and the municipal finance department review and approve it. The projects involving budget adjustment or regulation shall be handled in accordance with laws, regulations and relevant provisions.
Article 16 For the projects that have been clarified in the national, provincial and municipal national economic and social development plans and the projects decided to be implemented by the municipal government's executive meeting, the feasibility study report can be submitted directly (as the substitute of the project proposal).
For the projects that do not need to go through the pre-examination of land use (sea use) and the site selection, the feasibility study report (as the substitute of the project proposal) or the construction plan and the budget estimate can be submitted directly.
For some expansion and reconstruction projects, as well as the projects that require emergency construction in response to emergencies such as natural disasters, accidents and disasters, public health incidents, social security incidents, etc., the preliminary design and the budget estimate can be submitted directly (as the substitute of the feasibility study report).
Article 17 For the projects that arrange the government investment funds by means of investment subsidy or loan with discounted interest, the project company shall handle the formalities according to relevant regulations of the state.
Chapter III Annual government investment plan
Article 18 The municipal development and reform department and other relevant departments shall establish a database of government-invested projects in related fields and implement the dynamic management in accordance with national macro-control policies, national economic and social development plans, land and space plans, special plans for related industries and actual needs. In accordance with the maturity of the project, the project is included into the three-year government investment rolling plan and is connected with the medium-term financial plan. In principle, no government investment will be arranged for projects that are not included in the three-year government investment rolling plan.
The projects included in the three-year government investment rolling plan can be included in the annual government investment plan after the preliminary work meets the requirements described in the project proposal and the investment estimate is proposed.
For infrastructure and social welfare projects that have a major impact on the city’s economy, society, or environment, the publicity or hearing shall be conducted before decision-making, and the public’s opinions shall be extensively listened to.
Article 19 The municipal development and reform department shall, in the second half of each year, in conjunction with the municipal finance department, propose the draft annual municipal government investment plan of the next year according to the three-year government investment rolling plan, the preliminary work progress, the size of the funds for fiscal capital construction and the priority of the construction project after sufficiently listening to the opinions of the competent departments, clarifying the project name, the construction content and scale, the construction period, the total project investment, the annual investment and the sources of funds, etc., submit it to the municipal government for approval as the implement program of the municipal government investment of the next year.
Other relevant department of the municipal government may prepare the annual government investment plan for the government investments in the industries and fields in their charge according to the provisions of the previous article.
The annual government investment plan shall be connected with the budget of the same level.
Article 20 The municipal government arranges the preliminary work expenditures for major projects in the annual government investment plan every year, mainly used for purchasing services such as project engineering consultation, evaluation of impact on environment, reconnaissance design, invitation for bids and bidding as well as project planning, investigation and survey, evaluation, demonstration and other relevant issues. Relevant national regulations shall apply to the standard of expenses.
After the project is approved for implementation, the preliminary work expenses of the project will be included in the project construction cost accordingly. For projects that have not been approved for construction, the user of the preliminary work expenses shall submit an application which shall be written off after it is approved by the municipal government.
Article 21 The municipal finance department shall, in accordance with the draft annual government investment plan approved by the municipal government, prepare a draft budget for annual fiscal capital construction expenditures, and submit it for approval in accordance with regulations. Matters involving the budget review and approval of the Municipal People's Congress shall be implemented in accordance with relevant regulations.
The municipal financial department shall, in accordance with the approved budget, laws, administrative regulations and relevant provisions of the treasury management, appropriate the government investment funds in time and in full amount.
Article 22 For projects included in the approved draft annual government investment plan, if the following conditions are met, the municipal development and reform department will issue a formal investment plan to each project company according to the actual needs of the project, and copy it to the competent department of the project:
(1) Where the mode of direct investment or capital injection is adopted, the feasibility study report has been approved or the investment budget has been verified;
(2) Where the mode of investment subsidy or loan with discounted interest is adopted, the formalities have been handled according to relevant national regulations;
(3) Other conditions stipulated by the municipal government and other departments.
The government investment plan shall be strictly executed. Without legal procedure, any unit or individual shall not modify it.
Article 23 The municipal finance department shall issue the project expenditure budget in a timely manner based on the budget approved by the Municipal People’s Congress, the government investment plan and the project expenditure plan prepared by the project company.
Article 24 During the implementation of the annual government investment plan, if it is necessary to adjust the total annual government investment or increase or decrease the newly-started project, the competent department of the project shall make adjustment suggestions, and the municipal development and reform department will formulate an adjustment plan in conjunction with the municipal finance department, and report it to the municipal government for approval before implementation.
Chapter IV Implementation of projects
Article 25 The project company shall organize the construction drawing design and prepare the project budget in strict accordance with the issued investment plan and the approved preliminary design and budget estimate.
Article 26 The survey, design, construction (including decoration and fitment), supervision units, and the purchase of bulk materials and equipment of government-invested projects shall be subject to invitation for bids and bidding in accordance with the law. Other government procurement modes can also be adopted for goods and services that belong to the government procurement catalog.
Article 27 The commencement and construction of government-invested projects shall comply with the construction conditions stipulated in the "Government Investment Regulations" and relevant laws and regulations; those not compliant with the prescribed construction conditions shall not be started.
Subcontracting and illegal subcontracting are prohibited for government-invested projects.
Government-invested projects shall not be funded by construction units for construction.
Government-invested projects that meet the requirements for inclusion in statistics after the start of construction shall be reported to the statistical department for inclusion in statistics in time.
Article 28 The project company shall determine the person responsible for the project after the approval of the project, and be responsible for the implementation of the whole process of the project, and truthfully report the basic information of the start of construction, the construction progress and the completion of project to the municipal development and reform department through the online platform regularly.
Government-invested projects shall be implemented according to the site, the scale and the content of construction approved by the municipal development and reform department; if the construction site is to be changed or that the construction scale or content is to be changed significantly, it shall be reported to the municipal development and reform department for approval in accordance with the prescribed procedures.
The construction period of government-invested projects shall be determined reasonably and implemented strictly in accordance with relevant regulations, and no unit or individual may illegally interfere.
Article 29 The project company shall apply to the municipal finance department for construction funds in accordance with the issued investment plan in accordance with the procedures. The payment of financial funds shall be implemented in accordance with the relevant provisions of the central treasury payment system and the contractual agreements, and comprehensively consider the factors such as the project’s financial capital budget and construction progress.
The financial fund management shall comply with the principle of the fixed fund for the fixed purpose and the approved project budget shall be executed strictly. It is prohibited to misappropriate the fund.
Article 30 If a government-invested project has other sources of funds, the project company shall ensure its implementation in accordance with the approved project construction financing plan.
Article 31 After the project company receives the completion report of the government-invested project, it shall promptly organize the completion acceptance in accordance with the regulations. After the project has passed the acceptance inspection or the trial operation, the project company shall prepare the final financial account of the completed project within 3 months; if it is necessary to extend the project under special circumstances, it shall not exceed 2 months for small and medium-sized projects and 6 months for large-scale projects. If the competent department otherwise stipulates a time limit, it shall be handled in accordance with the time limit.
The final financial account of the project completed shall be approved by the municipal finance department and the competent department of the project in accordance with the division of work, and the specific measures shall be separately formulated by the municipal finance department.
Article 32 The project company shall, in accordance with the financial final account of completed project approved by the municipal finance department or the project competent department, promptly handle the transfer, clean-up and handover of relevant accounts, assets and materials, and the asset receiving unit shall record them in the value of the assets delivered for use based on the approval document of the financial final account, and include it in the state-owned assets for supervision and management.
Article 33 The municipal development and reform department or other relevant departments shall, in accordance with relevant national, provincial and municipal regulations, select representative completed government-invested projects, and entrust engineering consulting units with corresponding capabilities to conduct post-evaluation on the selected projects. The post-evaluation shall be a comprehensive evaluation on the approval and implementation of the project based on the actual effect of the completed project and give clear opinions.
Chapter V Supervision and management
Article 34 The municipal development and reform department and other relevant departments shall adopt online monitoring, on-site verification and other methods to strengthen the supervision and inspection of the implementation of government-invested projects, establish an information sharing mechanism for government-invested projects and realize the information sharing through online platforms.
The competent department of project is responsible for supervising the whole process including project proposal, preliminary preparation, invitation for bids and bidding, fund use management, project progress, project quality, completion acceptance, final account of project, asset transfer, etc., and promptly notify relevant departments of problems arising during project implementation, and report to the municipal government if necessary.
Article 35 The municipal finance department is responsible for supervising the whole process of government investment fund use and financial activities.
Article 36 The municipal housing and urban-rural construction, transportation, water management and other departments shall supervise and manage the construction, project quality, construction safety and supervision of government-invested projects in accordance with their duties.
Article 37 The municipal audit department shall conduct audit and supervision of the implementation of government-invested project budgets, final accounts and benefits in accordance with the law; carry out follow-up audits of key construction projects invested by the government in a planned manner.
Article 38 The municipal development and reform department and other departments that are responsible for the supervision and management of government investment in accordance with the law shall promptly transfer relevant clues to problems discovered in supervision and inspection, such as ineffective performance of duties, prevarication, falsification, dereliction of duty and other suspected violations of disciplines and laws to relevant organs that will pursue accountability in accordance with laws and regulations and disciplines.
Article 39 The names of the entities in charge of project construction, survey, design, execution and supervision and the names of their responsible persons shall be publicized in a prominent place on the construction site of the government-invested project; the names of the above-mentioned entities shall be publicized in a prominent place of the completed building (structure).
Other matters involving performance management of government-invested projects, quality management of construction project and production safety management shall be implemented in accordance with relevant laws and regulations and relevant provisions.
Chapter VI Legal responsibilities
Article 40 If the project company commits one of the following acts, the relevant competent departments shall order the rectification within a time limit according to their respective duties and the specific circumstances, suspend or stop the disbursement of funds or recover the disbursed funds, suspend or stop construction activities, and punish the responsible leaders and persons directly in charge according to the law; if a crime is constituted, the criminal responsibility shall be pursued according to the law:
(1) Commencement of construction without approval or without meeting the stipulated construction conditions;
(2) Falsify and defraud the approval of government-invested project or government investment funds such as investment subsidies or loan interest discounts;
(3) Change the construction site or significantly change the construction scale or content of the government-invested project without approval;
(4) Modify the construction drawing design, raise the construction standard, expand the construction scale or increase the investment budget without approval;
(5) Ask the construction unit to fund the construction of the government-invested project;
(6) Not organize the invitation for bids in accordance with laws;
(7) Not implement or the project or not respect the construction period without reasonable reasons;
(8) The inspection of the on-site visa and the settlement of the project are not strict, which causes economic losses;
(9) The improper management of project completion documents causes missing of documents or transfer, hiding, falsification, destruction or abandon of documents related to the project.
Article 41 In any of the following circumstances, the correction shall be required, and the responsible leaders and personnel directly in charge shall be punished according to laws; if a crime is constituted, the criminal responsibility shall be pursued according to laws:
(1) Approve a government-invested project out of the approval authority;
(2) Approve an illegible government-invested project;
(3) Not verify or adjust the investment budget estimate of a government-invested project according to the regulations;
(4) Arrange government investment funds such as investment subsidy and discounted interest of loan for illegible projects;
(5) Other circumstances of negligence, abuse of power and malpractice for personal gain in the performance of government investment management duties.
Article 42 When consulting or designing units prepare or consult and evaluate project proposals, feasibility study reports, preliminary designs and budget estimates, construction drawing designs and budgets, they shall be punished for falsification or important misrepresentation according to law; if they cause economic losses, they shall be liable for compensation according to law; if they constitute crimes, their criminal responsibilities shall be pursued.
Article 43 When participating in the implementation of government-invested projects, if relevant entities that violate laws and administrative regulations, provide false materials, conceal the truth or harm the public interest, their conducts will be included in the credit record of the credit subject according to law; in case of serious untrustworthy conducts, the entities shall be included in the list of serious untrustworthy entities according to law and joint disciplinary measures will be taken according to law.
Chapter VII Supplementary provisions
Article 44 Each district (county-level city) government may refer to these measures and formulate its own investment management measures according to actual needs.
Article 45 These measures shall come into effect on March 1, 2021, while the "Interim Management Measures for Government-Invested Projects of Qingdao" (Qingdao Municipal People's Government Order No. 186) published by Qingdao Municipal People's Government on November 25, 2005 shall be repealed at the same time.