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MEASURES FOR THE ADMINISTRATION OF NATIONAL KEY CONSTRUCTION PROJECTS

Category  GENERAL Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1996-06-14 Effective Date  1996-06-14  

Measures for the Administration of National Key Construction Projects





(Approved by the State Council on June 3, 1996 and promulgated by the

State Planning Commission on June 14, 1996)

    Article 1  These Measures are formulated for the purposes of strengthening
the administration of national key construction projects, ensuring the
construction quality and that the projects are completed on time, enhancing
the investment returns and promoting the sustained, rapid and healthy
development of national economy.

    Article 2  "National key construction projects" referred to in these
Measures mean key construction items which are selected from the following
large- and medium-sized national capital construction projects because of
great influence upon national economy and social development:

    (1) large-sized items of infrastructure, basic industries and pillar
industries;

    (2) items of high technology which can promote the industrial
technological progress;

    (3) transregional items of great influence upon national or regional
economic development;

    (4) items of great influence upon social development; and

    (5) other key construction items.

    Article 3  National key construction projects shall be designated in
accordance with the national industrial policies, based upon the necessity and
impossibility of national economy and social development, and in line with the
principle of laying emphasis on priorities, acting according to the
capability, leaving some margin, preventing scattered investment and ensuring
capital injection and supply.

    Article 4  The planning department under the State Council shall designate
national key construction projects in consultation with the competent
departments concerned under the State Council.

    Article 5  Planning departments of people's governments of provinces,
autonomous regions and municipalities directly under the central government
and of cities separately listed in planning, and the competent departments (or
companies) under the State Council may, within the scope of items specified in
Article 2 and in accordance with the principle in Article 3 of these Measures,
balance capital construction items within their respective regions or
departments and file with the planning department under the State Council
applications for listing some of them as national key construction projects
for each year.

    The planning department under the State Council shall, after receiving the
applications, seek the opinions of the competent departments concerned under
the State Council, make overall balancing and designate preparatory national
key construction projects after feasibility study reports of construction
items submitted in applications have been approved. National key construction
projects shall be designated officially after the construction of items
submitted in applications has been started.

    The planning department under the State Council shall publish national key
construction projects and preparatory national key construction projects after
designating them.

    Article 6  The planning department under the State Council and planning
departments of local people's governments concerned shall arrange annual
investment plans for national key construction projects according to their
construction periods of time.

    Article 7  A legal person established for a national key construction
project shall assume overall responsibility for the construction project. If
otherwise provided by state provisions, such provisions shall apply.

    A legal person established for a national key construction project shall
be in charge of making preparations, raising funds, building, production and
business operations, paying off debts and maintaining and increasing the value
of assets for the construction project, and shall keep control over funds,
time limit, quality and production safety of the national key construction
project strictly according to relevant state provisions.

    The Company Law of the People's Republic of China and other relevant state
provisions shall be applicable to the organizational form and structure of
legal persons established for construction projects.

    Article 8  The competent departments concerned under the State Council,
local people's governments concerned, banks, enterprises and institutions,
each of whom is responsible for allocations to national key construction
projects under annual investment plans and contracts for construction
projects, shall ensure the construction allocations according to the schedules
of the projects.

    Article 9  Each bank and department concerned shall give priority to
equipment reserve allocations to national key construction projects.

    Article 10  The planning department under the State Council and planning
departments of local people's governments concerned shall set aside a certain
percentage of funds to meet special requirements arising in the process of
construction when arranging annual investment plans for national key
construction projects.

    Article 11  No unit or individual may misappropriate or retain
construction funds and equipment reserve funds for national key construction
projects.

    Article 12  Local people's governments shall coordinate the work related
to the requisition of land for national key construction projects and shall
provide conveniences necessary for the construction. Land administration
departments shall ensure the use of land for national key construction
projects according to law.

    Article 13  Open tenders shall be invited for the design, construction,
management and equipment purchase in the principle part of a national key
construction project by the legal person established for the project and the
proper tender shall be accepted on the basis of competitive selection, with
the exception of those projects for which tender invitations may, with an
approval, be negotiated or limited to special persons.

    Grade A (or first-class) qualification specified by the state shall be
required for tenderers for national key construction projects.

    Without the consent of the legal person established for the national key
construction project, any party having won the tender may not subcontract the
construction.

    The planning department under the State Council shall, in consultation
with the competent departments concerned under the State Council, local
people's governments concerned and banks, exercise the supervision and
inspection over the tendering for national key construction projects.

    Article 14  Departments in charge of electric power, transportation, post
and telecommunications, water and heat supply shall give priority to
electricity for construction and production use, materials transportation,
communication, and demand for water and heat required by national key
construction projects, and shall perform their duties according to contract.

    Article 15  Enterprises and institutions concerned shall give priority to
the supply of equipment and materials required by national key construction
projects, and shall perform their duties according to contract.

    Article 16  No unit or person may collect fees from national key
construction projects. If otherwise provided by law or by the State Council,
such provisions shall apply.

    Article 17  A legal person established for national key construction
project shall submit a report on the construction and materials regarding the
project to the planning department under the State Council according to
relevant provisions and shall send copies of them to the competent departments
concerned and the bank.

    Article 18  A project directly supporting a national key construction
project shall be put into operation simultaneously with the schedule of the
national key construction project. Departments and units financing the
construction of such a supporting project shall ensure allocations to it
according to the construction schedule.

    Article 19  A legal person established for a national key construction
project shall promptly organize the preliminary inspection and acceptance
together with the designer and the constructor according to the approved
design document and other relevant documents after the completion and trial
operation of the project.

    If the project passes the preliminary inspection and acceptance, the
planning department under the State Council or an agency authorized by it
shall organize the inspection and acceptance upon completion together with
involved parties.

    Article 20  A national key construction project which has passed the
inspection and acceptance upon completion and has been put into operation
shall be given an evaluation upon completion according to relevant state
provisions.

    Article 21  The planning department under the State Council shall, in
consultation with the competent departments concerned under the State Council
and local people's governments concerned, coordinate, guide and supervise the
work for national key construction projects.

    Article 22  If any party concerned fails to allocate funds to a national
key construction project according to provisions, the planning department
under the State Council shall issue a circular to criticize him and propose to
the competent department for imposing disciplinary sanction according to law
upon the person in charge directly responsible or other persons responsible.
If a local investment is not allocated according to provisions for two
consecutive years, the planning department under the State Council has the
authority to suspend the approval of any new construction project in the
locality for the next year.

    If any party concerned fails to allocate funds to a national key
construction project according to contract, he shall bear the liability for
breach of contract.

    Article 23  If anyone misappropriates or retains funds for national key
construction projects, the auditing and financial authorities shall reclaim
the funds misappropriated or retained, issue a circular to criticize him and
propose to the competent department for imposing disciplinary sanction
according to law upon the person in charge directly responsible and other
persons responsible; if a crime has been constituted, the offender shall be
investigated for criminal liability.

    Article 24  If anyone disturbs the order of the construction and
production and business operations of national key construction projects,
making it impossible for the work to be conducted normally, he shall be
punished according to the provisions of the Regulations of the People's
Republic of China on Administrative Penalties for Public Security; if a crime
has been constituted, criminal liability shall be investigated according to
law.

    Article 25  If a national key construction project costs quite beyond its
estimated budget, or has inferior quality, or suffers loss and waste or a
liability accident, as a result of poor management or fraud, the planning
department under the State Council shall circulate a notice of criticism and
propose to the competent department for imposing disciplinary sanction
according to law upon the person in charge directly responsible and other
persons responsible; if a crime has been constituted, criminal liability shall
be investigated according to law.

    Article 26  These Measures comes into effect on the date of promulgation.



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