SMM News: at a press conference held by the National Development and Reform Commission today on macroeconomic performance, spokesman Yan Pengcheng said, What will be the impact on ongoing and new projects after the State Office has issued the "opinions on further strengthening the Planning and Construction Management of Urban Rail Transit"? How to prevent all kinds of risks in the development of urban rail transit? In response to that question, he said:

In recent years, in accordance with the decision-making arrangements of the CPC Central Committee and the State Council, the National Development and Reform Commission, in conjunction with relevant departments, has actively supported qualified cities in promoting the planning and construction of urban rail transit. On the whole, the development of urban rail transit in China is healthy and orderly, but at the same time, it should also be seen that some cities also have some problems, such as excessive planning, too concentrated construction scale, inadequate implementation of funds and so on. To this end, the State Office has issued "opinions on further strengthening the Planning and Construction Management of Urban Rail Transit", which puts forward new requirements for the orderly development of urban rail transit norms.

You mentioned that after the introduction of the relevant policies, it will have a significant impact on the construction project. I would like to make two comments:

For the projects under construction, on the one hand, the opinions strengthen the requirements of the proportion of financial funds in the total investment of the projects. in addition to the franchising mode clearly adopted in the construction planning, the total investment of financial funds in urban rail transit projects should not be less than 40%. On the other hand, it has strengthened the responsibility of the urban government for the expenditure of the entire life cycle of rail transit projects, that is, it is necessary to advance the projects under construction on schedule in accordance with the requirements of the proportion and source of capital specified in the state's approved construction plan. There can be no "half pull" project. This requires the city government to consider the budget as a whole, optimize and adjust the expenditure structure, implement project funds, and ensure that the full amount is in place on time.

For other projects that are in the process of fulfilling the examination and approval procedures and the plan, it is necessary to strengthen the examination and approval of the project funding plan in strict accordance with the provisions of the "opinions" and the requirements of the construction plan, only if the source of funds has been clearly implemented. In order to approve and start construction in accordance with the procedures.

With regard to how you mentioned how to prevent the risks in the construction of urban rail transit, I think the "opinions" already have a more comprehensive deployment and arrangements. To sum up, it is "five strictures". First, strict declaration conditions. For the cities that declare the construction of urban rail transit, the general public budget income, GDP and other standards have been raised. Second, strict planning and examination. We will strengthen the examination and control of the scale of construction, financing schemes, debt levels, and planning contents to ensure compliance with regulations and requirements. The third is to strictly control the speed rhythm. For cities that want to carry out a new round of construction planning, they must be implemented in the last year of the current round of construction planning, or more than 70% of the total investment in the planned project must be completed before they can be submitted for approval. Fourth, we will strictly implement financial guarantees. For projects that do not comply with laws and regulations, or do not implement the source of debt servicing funds, as well as cities included in the scope of early warning of local government debt risk, approval of new projects shall not be approved or suspended. Fifth, strict supervision after the event. We will strengthen regulatory capacity-building, further clarify the responsibilities of national and provincial government departments and relevant cities, and propose relevant measures for accountability.

In the next step, the National Development and Reform Commission, in conjunction with the relevant departments, will conscientiously implement the relevant provisions of the opinions and further strengthen the supervision and management of the implementation of urban rail transit planning. Thank you.