The Ministry of Finance and the Ministry of Housing and Construction issued the Measures for the Management of Subsidy Funds for Urban Pipeline Networks and Sewage Treatment

               

In order to implement the requirements of the Party Central Committee and the State Council on strengthening urban infrastructure construction, the Ministry of Finance and the Ministry of Housing and Urban-Rural Construction issued a circular on the issuance of the Measures for the Management of Subsidy Funds for Urban Pipeline Networks and Sewage Treatment (hereinafter referred to as the "Management Measures").

The "Management Measures" clearly states that the subsidized funds are used to support the following matters: the pilot project of sponge city construction; the pilot project of underground comprehensive pipe corridor construction; the demonstration of urban black and odorous water treatment; and the improvement of quality and efficiency of urban sewage treatment in central and Western regions.

The "Management Measures" points out that the Ministry of Finance and the Ministry of Housing, Urban and Rural Construction are responsible for the management of the subsidy funds. The Ministry of Finance is responsible for formulating the criteria and allocation elements of subsidy fund expenditure, determining the annual scale and allocation plan of subsidy fund, allocating funds, organizing budget performance management and guiding local governments to strengthen fund management according to the proposal of fund arrangement submitted by the Ministry of Housing, Urban and Rural Construction. The Ministry of Housing and Urban-Rural Construction is responsible for formulating relevant plans or implementation plans, putting forward suggestions on fund arrangement, guiding and urging local governments to do a good job in relevant implementation work, etc.

For subsidy funds, the "Management Measures" proposed different ways of allocation according to different support items. Pilot projects for the construction of sponge cities and underground comprehensive pipeline corridors shall be given a fixed subsidy according to the established subsidy standards (sponge cities pilot projects: 600 million yuan per year for municipalities directly under the Central Government, 500 million yuan per year for provincial capitals, 400 million yuan per year for other cities; underground comprehensive pipeline pilot projects: 500 million yuan per year for municipalities directly under the Central Government, 400 million yuan per year for provincial capitals and 300 million yuan per year for other cities). After the completion of the pilot project, according to the results of performance evaluation, the comprehensive evaluation of each batch ranks high and the application of PPP model has outstanding effect, rewarding according to 10% of the total allowance. The demonstration of black and odorous water treatment is determined by competitive evaluation. The Ministry of Finance, together with the Ministry of Housing, Urban and Rural Construction and other departments, issues declaration notices, and determines the cities to be selected annually by organizing expert data review and on-site public review. The central government gives a quota subsidy to the selected cities. According to the batches, the subsidy standards are 600 million yuan, 400 million yuan and 300 million yuan, respectively. In order to improve the quality and efficiency of urban sewage treatment in the central and Western regions, according to the three-year investment amount of construction tasks reported by the Ministry of Housing, Urban and Rural Construction in the central and Western provinces, the funds are allocated according to the factor method, and according to the same proportion of 0.7:1 in the central and Western regions, the western regions are given preferential treatment.

Specifically as follows:

Management Measures of Subsidy Fund for Urban Pipeline Network and Sewage Treatment

In order to standardize and strengthen the management of urban pipeline networks and sewage treatment subsidy funds and improve the efficiency of the use of financial funds, these Measures are formulated in accordance with the Budget Law of the People's Republic of China, the Opinions of the State Council of the Central Committee of the Communist Party on the Comprehensive Implementation of Budget Performance Management, and the Opinions of the State Council on Strengthening Urban Infrastructure Construction.

The term "urban pipeline network and sewage treatment subsidy fund" (hereinafter referred to as subsidy fund) as mentioned in these Measures refers to the transfer payment funds allocated by the central government to support the construction of urban pipeline network, intensive utilization of urban underground space, construction of urban sewage treatment facilities, urban drainage and waterlogging prevention and water ecological restoration.

Subsidy funds shall be used exclusively and managed exclusively.

The subsidy funds shall be managed by the Ministry of Finance in conjunction with the Ministry of Housing, Urban and Rural Construction.

The Ministry of Finance is responsible for formulating the criteria and allocation elements of subsidy fund expenditure, determining the annual scale and allocation plan of subsidy fund, allocating funds, organizing budget performance management and guiding local governments to strengthen fund management according to the proposal of fund arrangement submitted by the Ministry of Housing, Urban and Rural Construction.

The Ministry of Housing and Urban-Rural Construction is responsible for formulating relevant plans or implementation plans, putting forward suggestions on fund arrangement, guiding and urging local governments to do a good job in relevant implementation work, etc.

Local financial departments are mainly responsible for raising and implementing local support funds, decomposing budget and performance objectives, doing a good job in the whole process of budget performance management, and effectively improving the efficiency of the use of financial funds.

Local housing construction departments in urban and rural areas are responsible for the formulation and demonstration of the implementation plan, the organization of project implementation, the use of subsidized funds according to regulations, and the strengthening of budget performance management.

The subsidy fund shall be used to support the following matters:

(1) Pilot projects of sponge city construction;

(2) Pilot projects for the construction of underground comprehensive pipeline corridors;

(3) Demonstration of urban black and odorous water treatment;

(4) To improve the quality and efficiency of urban sewage treatment in the central and Western regions.

Article 7 The overall implementation period of the subsidy fund shall not exceed five years. The implementation period shall be determined in accordance with the relevant deployment requirements of the Central Committee of the Party and the State Council.

The pilot projects of sponge city construction and underground comprehensive corridor construction will be implemented for three years each batch, and will be completed by the end of 2018. The related work of policy closure will be carried out in 2019 and 2020.

The demonstration of urban black and odorous water treatment started in batches in 2018, and all of them expired at the end of 2020.

The improvement of quality and efficiency of urban sewage treatment in the central and western regions started in 2018 and expired at the end of 2021.

Before the Ministry of Finance compiles the annual budget every year, it jointly evaluates the compliance and effectiveness of the subsidy fund support projects with the Ministry of Housing, Urban and Rural Construction. According to the results of the evaluation, different situations are distinguished. According to the relevant provisions of budget management, cancellations, adjustments, integration and continuing implementation are dealt with.

Article 8 Subsidy funds shall be allocated in different ways according to different support items.

Pilot projects for the construction of sponge cities and underground comprehensive pipeline corridors shall be given a fixed subsidy according to the established subsidy standards (sponge cities pilot projects: 600 million yuan per year for municipalities directly under the Central Government, 500 million yuan per year for provincial capitals, 400 million yuan per year for other cities; underground comprehensive pipeline pilot projects: 500 million yuan per year for municipalities directly under the Central Government, 400 million yuan per year for provincial capitals and 300 million yuan per year for other cities). After the completion of the pilot project, according to the results of performance evaluation, the comprehensive evaluation of each batch ranks high and the application of PPP model has outstanding effect, rewarding according to 10% of the total allowance.

The demonstration of black and odorous water treatment is determined by competitive evaluation. The Ministry of Finance, together with the Ministry of Housing, Urban and Rural Construction and other departments, issues declaration notices, and determines the cities to be selected annually by organizing expert data review and on-site public review. The central government gives a quota subsidy to the selected cities. According to the batches, the subsidy standards are 600 million yuan, 400 million yuan and 300 million yuan, respectively.

In order to improve the quality and efficiency of urban sewage treatment in the central and Western regions, according to the three-year investment amount of construction tasks reported by the Ministry of Housing, Urban and Rural Construction in the central and Western provinces, the funds are allocated according to the factor method, and according to the same proportion of 0.7:1 in the central and Western regions, the western regions are given preferential treatment. The annual capital acquisition quota of a province = the total annual capital * the total investment of three-year construction tasks of a province * the adjustment coefficient of the central and western regions /(the total investment of three-year construction tasks of the central and western provinces * the adjustment coefficient of the central and Western regions)

The Ministry of Finance shall, in accordance with the relevant arrangements of the Party Central Committee and the State Council, the Ministry of Commerce, Housing, Urban and Rural Construction and other departments, determine the key areas of annual support and the amount of funds, and shall, within 90 days after the approval of the budget by the National People's Congress, issue the budget of subsidized funds to the provincial finance. Budget submission documents should be copied to the local Supervision Bureau of the Ministry of Finance at the same time. The results of the allocation of subsidized funds shall be made public to the public within 20 days of the formation of the budget submission document.

Provincial financial departments shall, within 30 days after receiving the budget of subsidized funds, formally decompose and distribute it to the relevant departments at the corresponding level and the financial departments of the governments at or above the county level in their respective administrative regions, publicize the results of the allocation of funds to the public according to regulations, report the results of the allocation of funds to the Ministry of Finance for the record and copy them to the local Supervision Bureau of the Ministry of Finance. 

The payment of subsidized funds shall be carried out in accordance with the provisions of the relevant financial management system of the State. If it falls within the scope of government procurement management, it shall be implemented in accordance with the relevant provisions of the State on government procurement. If it falls within the scope of introducing social capital management, it shall be implemented in accordance with the relevant provisions of the state on cooperation between the government and social capital.

The subsidy funds shall be used for construction projects directly related to the supporting items. It is strictly prohibited to use them for basic expenditure of building, halls, administrative institutions, purchase of means of transportation and communication equipment and other expenditures not directly related to the supporting items.

Financial departments at all levels, in conjunction with relevant departments such as housing, urban and rural construction, shall scientifically and rationally determine performance objectives, implement the whole process of budget performance management, and effectively improve the efficiency of the use of financial funds in accordance with the requirements of implementing budget performance management in an all-round way. The Ministry of Finance, together with the Ministry of Housing, Urban and Rural Construction and other relevant departments, organizes and implements performance evaluation of local governments in accordance with the relevant provisions of performance management of special financial funds. The results of performance evaluation serve as the basis for budgetary arrangement, policy adjustment and improvement of management.

Departments of finance, housing, urban and rural construction at all levels shall, in accordance with their respective responsibilities, supervise and administer the use of municipal pipelines and sewage treatment subsidy funds of the governments at the next level and the implementation of relevant working organizations.

Where any person concerned in the examination and approval of subsidized funds commits any of the following illegal or disciplinary acts, he shall be investigated for corresponding responsibility in accordance with the relevant provisions of the Budget Law, the Civil Servant Law, the Supervision Law and the Regulations on Punishment and Disposal of Financial Illegal Acts; if he is suspected of committing a crime, he shall be transferred to the judicial organ for handling:

(1) Those who violate relevant provisions such as competitive procedures and interfere with the determination of supporters through fairness, openness and impartiality;

(2) If the allocation of funds exceeds the scope and standard of the implementation plan;

(3) failing to apply for, allocate or manage special funds in accordance with the prescribed procedures;

(4) Failing to carry out supervision and implementation work according to relevant requirements, or failing to organize and carry out performance evaluation work in accordance with regulations;

(5) Other violations of law and discipline, such as abuse of power, dereliction of duty, favoritism and fraud.

Financial departments at all levels shall, in accordance with the Regulations of the Government of the People's Republic of China on the Disclosure of Information and the requirements of relevant documents, do a good job of budget disclosure in a timely manner.

The annual non-expenditure of subsidized funds shall be implemented in accordance with the relevant provisions of the Ministry of Finance on the management of carry-over balances. The carry-over subsidy fund for the current year shall be transferred to the next year for use. If the budget has not been allocated to the departments and the financial departments of the lower governments for the balance funds and the transfer funds that have not been used up for two consecutive years, the financial departments of the governments at the corresponding levels shall report to the financial departments of the higher governments when handling the financial settlement of the lower and lower levels, and the financial departments of the higher governments shall handle the issuance of documents to recover the balance funds within 30 days after receiving the reports; if the budgets have been allocated to the departments, the governments at the corresponding levels of the departments shall report to the higher government. The financial department shall withdraw the overall utilization within 90 days after the end of the year.

The local supervisory bureaus of the Ministry of Finance shall supervise territorial subsidies in accordance with their duties and the requirements of the Ministry of Finance. Documents on the budget of the subsidy fund are also copied to the local Supervision Bureau of the Ministry of Finance.

These Measures shall come into force as of the date of promulgation. Notice of the Ministry of Finance on the Issuance of Measures for the Management of Special Funds for Urban Pipeline Networks (No. 863 of Finance Construction) and Notice of the Ministry of Finance on the Issuance of Interim Measures for the Performance Evaluation of Special Funds for Urban Pipeline Networks (No. 2016 52 of Finance Construction) were also abolished.