Procedures of Shanghai Municipality for the Approval Management of Enterprise Investment Projects

(March 20, 2019)

SMPG D [2019] No. 13

Chapter I  General Provisions

Article 1

With a view to regulating the government's approval of the enterprise investment projects, these Procedures are formulated in accordance with the Regulations on the Approval and Filing Management of Enterprise Investment Projects, the Procedures for the Approval and Filing Management of Enterprise Investment Projects and the actual circumstances of this Municipality.

Article 2

The enterprise investment projects referred to in these Procedures (hereinafter referred to as "the projects") refer to the fixed asset investment projects invested and constructed by the enterprises in Shanghai, including the projects where enterprises use self-financing funds, and the projects where self-financing funds are used and government investment subsidies or loan discounts are applied for.

The scope of investment projects subject to the approval system and the limits of approval powers of the project approval authorities shall be determined by the List of Investment Projects Approved by the Government (hereinafter referred to as the List) promulgated by the State Council and the Detailed Rules for the Investment Project List Approved by Shanghai Municipal Government (hereinafter referred to as the List Rules). As the situations change, the List Rules shall be adjusted in time.

The management of foreign-invested projects shall be carried out in accordance with the relevant provisions of the State.

Where there are other provisions in laws and regulations, such provisions shall prevail.

Article 3

The approval authorities of enterprise investment projects in this Municipality (hereinafter referred to as "the project approval authorities") refer to the Municipal Development and Reform Commission, the Municipal Economic Informatization Commission, the district investment authorities and the institutions designated by the Municipal People’s Government.

The institutions designated by the Municipal People’s Government refer to the institutions that implement the project approval in their respective regions in accordance with the local laws and regulations.

Article 4

The market prospects, economic benefits, sources of funds and product technical schemes of the projects shall be decided by the enterprises independently and at their own risk according to law. The project approval authorities and other administrative organs shall not illegally interfere with the investment autonomy of the enterprises.

Article 5

The project approval authorities and their staff members shall approve the projects according to law, and shall not add or subtract the examination conditions without authorization, nor exceed the processing time limits.

Article 6

The project approval authorities shall follow the principle of "convenience to the people and high efficiency", improve their efficiency and provide high-quality services.

The project approval authorities shall formulate and publicize service guides, specify the application materials and required accessories, acceptance methods, examination conditions, processing procedures and processing time limits for project approval, so as to improve the work transparency and provide guidance and services for the enterprises.

Article 7

The district people’s governments and the relevant departments of the Municipal People’s Government shall, in accordance with relevant laws, regulations and provisions, supervise and manage the enterprises' fixed asset investment.

All units or individuals have the right to report to the relevant departments the illegal acts in the project approval and construction process, and the relevant departments shall verify and deal with them in a timely manner.

Article 8

Except for the projects involving State secrets, project filing shall be conducted via the Platform of Shanghai Investment Project Online Examination and Approval Supervision (hereinafter referred to as the "Online Platform") for online processing, supervision and service, so that the filing process and results can be queried and monitored.

Article 9

The project approval authorities and other relevant departments shall uniformly use the project codes generated by the Online Platforms to go through relevant formalities.

When projects applied via the Online Platforms, the unique project codes are generated as the identity of the projects during their whole construction cycles. Examination and approval information, supervision (punishment) information and important information in the process of project implementation are gathered in a unified way under the the project codes and docked with the social credit systems as the basic conditions for follow-up supervision.

Article 10

The project approval authorities and relevant departments shall publicize the development plans, industrial policies and access standards related to the projects via the Online Platforms.

The project approval authorities shall publicize the approval results in accordance with the relevant provisions of the Regulations on the Disclosure of Government Information.

Article 11

The enterprises investing in and constructing the fixed asset investment projects shall abide by the laws and regulations of the State, comply with the requirements of the general plans for national economic and social development, special plans, regional plans, industrial policies, market access standards, resource development, energy consumption and environmental management, go through the project approval and other relevant procedures according to law, and go through the procedures of urban and rural planning and use of land (sea area), environmental protection, energy resources utilization, safety production and other related procedures according to law, provide relevant materials and report relevant information truthfully.

Article 12

The relevant interested persons have the right to apply for administrative reconsideration or initiate administrative litigation in accordance with the law for the project approval acts carried out by the project approval authorities.

Chapter II  Application Documents for Project Approval

Article 13

The enterprises going through the formalities of project approval shall prepare the project application reports in accordance with the relevant requirements of the State and submit them in accordance with the provisions of Article 18 of these Measures after obtaining the relevant documents that shall be attached in accordance with the provisions of Article 17.

Article 14

The project units that prepare and submit the project application reports shall be responsible for the authenticity, legality and integrity of the project application reports and the attached documents according to law.

Article 15

The project application reports shall mainly include the following contents:

1. the situations of the project units;

2. the situations of the proposed projects, including the name, location, scale and contents of the projects;

3. the analysis of the utilization of project resources and their impact on the ecological environment; and

4. the analysis of the impact of the projects on economy and society.

Article 16

The project application reports shall be prepared in accordance with the relevant provisions such as the general text of the project application reports. The project application reports may be compiled by the project units themselves or by the project consultation units with relevant experience and ability independently entrusted by the project units. No unit or individual may compel the project units to entrust engineering consultation units to prepare the project application reports.

The engineering consultation units shall be legally, independently, objectively and impartially responsible for the documents they prepare when they are entrusted with the preparation of the relevant documents.

Article 17

When submitting the project application reports, the project units shall attach the following documents:

1. opinions on site selection issued by the planning resources departments (referring only to the projects with the right of using the state-owned land provided by means of allocation);

2. pre-assessment opinions on land use issued by the planning and resources departments (except in cases where the planning and resources departments have made it clear that the pre-assessment on land use may be avoided), or pre-assessment opinions on sea use issued by the marine departments; and

3. other relevant procedures required by laws, regulations and relevant provisions.

The project units needn’t be required to provide repeatedly the documents that can be obtained by way of mutual recognition and sharing of data depending on this Municipality’s big data platform.

Chapter III  Basic Procedures for Project Approval

Article 18

As for the projects approved by the State project approval authorities, the basic procedures shall be implemented in accordance with the relevant provisions of the State.

As for the projects approved by the municipal project approval authorities, the enterprises may directly submit their project application reports, or they may be transferred by district-level project approval authorities.

As for the projects approved by the district-level project approval authorities, the enterprises shall directly submit their project application reports to the district-level project approval authorities.

The project units are encouraged to login to the "one network office operation" platforms, submitting the application reports via the Online Platforms.

Article 19

Where the project application materials arecomplete and conform to the statutory forms, the project approval authorities shall accept them.

Where the project application materials are incomplete or do not conform to the statutory forms, the project approval authorities shall inform the project units once to supplement the relevant documents or adjust the relevant contents within five working days from the dates of receiving the project application materials. If no notification is made within the time limits, it shall be deemed as accepted from the dates of receiving the project application materials.

When accepting or rejecting the application materials, the project approval authorities shall issue written certificates with the special seals of the project approval authorities and with the dates indicated. The accepted application materials and the written documents shall bear the project codes, and the project units may inquire online according to the project codes, supervise the approval process and results.

Article 20

After formally accepting the project application reports which require assessment, the project approval authorities shall, within four working days, entrust engineering consultation units with relevant experience and ability to conduct assessment in accordance with the relevant provisions. When entrusting assessment, the project approval authorities shall, according to the specific conditions of the projects, put forward the key points of the assessment and specify the time limits for the assessment.

Where the engineering consultation units and the engineering consultation units that compile the project application reports are the same ones, having a holding, management relationship or the persons in charge are the same ones, the engineering consultation units shall not undertake the assessment of the projects. Where the project consultation units and the project units have a holding, management relationship or the persons in charge are the same ones, the project consultation units shall not undertake the project assessment of the project units.

Except for complicated project conditions, the assessment time limits shall not exceed 30 working days. The entrusted engineering consultation units shall submit the assessment reports within the time limits prescribed by the project approval authorities and bear responsibility for the assessment conclusions. If the projects are complicated, the time limits for assessment may be extended after the approval procedure has been gone through, but the time limits for extension shall not exceed 60 working days.

The project approval authorities shall file the project assessment reports with the approval documents for reference.

The cost of assessment shall be borne by the project approval authorities entrusting the assessment, and the assessment units and their staff members shall not collect any fees from the project units.

Article 21

Where the projects involve the responsibilities of the relevant industry management departments or the local governments where the projects are located, the project approval authorities shall consult and require the relevant industry management departments or the local governments to issue written review opinions within seven working days. If the relevant industry management departments or local governments fail to give feedback with the written review opinions within the time limits, they shall be deemed to agree.

Article 22

Where the project construction may have a significant impact on the public interests, the project approval authorities shall take appropriate measures to solicit public opinions before making approval decisions.

If the relevant departments have conducted substantive reviews on land use (sea use), environmental impact and social stability risks directly related to the vital interests of the masses and issued relevant approval documents, the project approval authorities may no longer repeatedly solicit public opinions on relevant contents.

For particularly important projects, an expert assessment system may be adopted. In principle, the time limits for expert review shall not exceed 30 working days, except for the extremely complicated project situations.

Article 23

The project approval authorities may, on the basis of assessment opinions, departmental opinions and public opinions, request the project units to adjust the relevant contents or to further clarify and supplement the relevant information and documents.

Article 24

Where the projects violate relevant laws and regulations or do not meet the requirements of development planning, industrial policies and market access standards, the project approval authorities may directly make decisions not to approve the projects without the procedures of entrusting assessment and soliciting opinions.

Article 25

The project approval authorities shall decide whether to approve the projects within 20 working days after formally accepting the application materials. If the projects are complicated or need to seek the opinions of the relevant units, the time limits for approval may be extended with the approval of the principal persons in charge of the administrative organs, but the time limits for extension shall not exceed 40 working days, and the project units shall be informed of the reasons for the extension.

If the project approval authorities need to entrust assessment and conduct expert review, the time required shall not be counted within the above-mentioned time limits. The project approval authorities shall inform the project units in writing of the time required for consultation, assessment and expert review.

Article 26

Where the projects meet the requirements for approval, the project approval authorities shall approve the projects and issue the project approval documents to the project units.

Where the projects do not meet the requirements for approval, the project approval authorities shall issue notifications of non-approval and explain the reasons for non-approval.

For the projects subject to the approval authority of the State Council, the competent investment departments under the State Council shall issue project approval documents or written notifications of non-approval to the project units in accordance with the decisions of the State Council.

Copies of the project approval documents or the written notifications of non-approval issued by the project approval authorities shall be sent to the relevant departments and subordinate authorities at the same levels, such as industry management, housing and urban-rural construction management, planning resources, ecological environment, water (ocean) and so on.

Chapter IV  Review and Effectiveness of Project Approval

Article 27

The project approval authorities shall examine the projects from the following aspects:

1. whether they endanger national security such as economic security, social security and ecological security;

2. whether they conform to the relevant development and construction plans, industrial policies and technical standards;

3. whether resources are reasonably exploited and effectively utilized; and

4. whether they adversely affect major public interests.

Article 28

In addition to the documents attached to the project application reports required by Article 17 of these Procedures, the project units shall also go through other relevant formalities according to law before starting construction.

Article 29

In any of the following circumstances, the project units shall submit applications for change to the original project approval authorities in writing timely:

1. the project legal persons have changed;

2. the construction sites have changed;

3. great changes have taken place in the scale of investment, the scale of construction and the contents of construction;

4. project changes may have significant adverse effects on the economy, society and environment; or

5. other major situations requiring the adjustment of the contents specified in the project approval documents.

Article 30

The original project approval authorities shall, within 20 working days from the dates of accepting the application, make written decisions on whether they agree to the change.

Where the original project approval authorities need to entrust assessment and conduct expert review, the time required shall not be counted within the time limits specified in the preceding paragraph.

Article 31

Where the project construction do not start within two years from the dates that the approval authorities issued the approval documents or they agreed to the project change decisions, and need to be postponed, the project units shall apply to the approval authorities for postponement of the construction 30 working days before the expiration of the two-year period.

The project approval authorities shall, within 20 working days from the dates of accepting the application, make decisions on whether they agree to postpone construction and issue relevant documents. Construction may only be delayed once, with a maximum period of not more than one year. Where the State has other provisions on the postponement of project construction, such provisions shall prevail.

If the construction does not start within two years and the extension is not applied to the project approval authorities in accordance with the provisions, the project approval documents or the decisions of agreeing to the change of the projects will automatically become invalid.

Article 32

The departments such as housing and urban-rural construction management, planning resources, ecological environment, emergency management and water (ocean) administration shall not handle the relevant formalities for the projects that shall be submitted to the project approval authorities for approval or change, or for the projects that have been applied but have not been approved.

Chapter V  Supervision and Management

Article 33

The higher project approval authorities shall strengthen the guidance and supervision of the lower project approval authorities, and promptly correct the illegal and irregular acts in project management.

Article 34

The project approval authorities, the departments of industry management, housing and urban-rural construction management, national security, planning resources, ecological environment, emergency management, water (ocean), local financial supervision and auditing shall, in accordance with the principle of "supervision to be conducted by the relative departments of examination and approval and the competent departments of the projects", adopt online monitoring and on-site verification to strengthen on-the-spot and post-event supervision of the projects according to law.

The project approval authorities shall supervise the projects in accordance with relevant laws and regulations, development planning, industrial policies, total amount control objectives, technical policies, access standards and relevant requirements.

The departments of housing and urban-rural construction management, planning resources, ecological environment, emergency management, water (ocean) and industry management shall perform their supervisory duties entrusted by laws and regulations and supervise the projects within the scope of their respective responsibilities.

The local financial regulatory authorities shall strengthen guidance and supervision to guide the financial institutions to independently examine and verify loans in accordance with the commercial principles.

The audit departments shall strengthen their supervision over the state-owned enterprises' investment projects, projects applying for the use of government investment funds and other public work projects according to law.

Article 35

The relevant government departments at all levels shall, in accordance with relevant laws, regulations and responsibilities, strengthen supervision and inspection of the projects within their respective administrative areas and, if any violations are found, deal with them according to law, and register relevant information on violations via the Online Platforms.

Article 36

Where the unqualified projects are approved or the projects approved beyond the authorities’ statutory functions and powers, the approval shall be revoked according to law.

Article 37

The project approval information of the project approval authorities at all levels, and the information of the housing and urban-rural construction management, planning resources, ecological environment, emergency management, water (ocean) and market supervision departments, as well as the information of the approval results and supervision (punishment) shall be exchanged and shared via the Online Platforms.

Article 38

The project units shall truthfully submit basic information on the start of construction, construction progress and completion of the projects via the Online Platforms.

Before the project construction starts, the project units shall log on the Online Platforms to report the basic information of the projects. After the project construction starts, the project units shall report the basic information of the dynamic progress of the project construction on-line annually. After the completion and acceptance of the projects, the project units shall submit the basic information of the project completion online.

Article 39

Where the project units have the following acts, the relevant information shall be included in the abnormal credit records of the projects and shall be included in the Shanghai Public Credit Information Service Platform:

1. failing to obtain approval documents according to law when they shall apply for project approval;

2. providing false project approval information;

3. starting construction without authorization in violation of the laws and regulations;

4. failing to organize implementation in accordance with the approved contents;

5. the project units failing to submit basic information such as the start of construction, construction progress and completion of the projects or in accordance with the provisions of Article 38 of these Procedures or sending false information; and

6. other violations of laws and regulations.

Chapter VI  Legal Liability

Article 40

In any of the following circumstances, the project approval authorities shall be ordered to make corrections by their superior administrative organs, and the responsible leaders and the persons directly responsible shall be punished by relevant departments and units according to law and discipline:

1. approving projects beyond their statutory functions and powers;

2. approving projects that do not meet the statutory requirements;

3. failing to approve projects that meet the statutory requirements;

4. adding or subtracting the conditions for approval and examination without authorization;

5. failing to make approval decisions within the statutory time limits;or

6. failing to perform supervisory duties according to law or failing to conduct adequate supervision, resulting in serious consequences.

Article 41

Where the project approval authorities and their staff members, as well as other relevant departments and their staff members, neglect their duties, abuse their powers, play favoritism and commit irregularities, solicit and accept bribes in the process of project approval and related examination and approval procedures, the responsible leaders and the persons directly responsible shall be punished in accordance with the law; if the cases constitute crime, they shall be investigated for criminal responsibility in accordance with the law.

Article 42

Where the project approval authorities and the departments of housing and urban-rural construction management, planning resources, ecological environment, emergency management and water (ocean) fail to perform their supervisory duties in accordance with the relevant laws and regulations, the persons in charge directly responsible and the other persons directly responsible shall be punished according to law; if the cases constitute crime, the criminal responsibility shall be investigated according to law.

Where the relevant government departments at the location of the projects fail to perform their duties of supervision and control over the investment of the enterprises, the directly responsible persons in charge and the persons directly responsible shall be punished according to law.

Article 43

Where the enterprises apply for approval by unfair means such as splitting up the projects, concealing relevant information or providing false application materials, the project approval authorities shall not accept or approve the applications, and shall give warnings.

Article 44

Where the enterprises fail to go through the formalities for approval and start construction of the projects subject to approval management according to law or fail to carry out construction in accordance with the approved sites, scale and contents of the projects, the project approval authorities shall order them to stop construction or stop production, and impose a fine of not less than 1‰ but not more than 5‰ on the total investment of the projects; and the persons in charge directly responsible and the other persons directly responsible. shall be fined not less than 20,000 yuan but not more than 50,000 yuan. If they are state personnel, they shall be punished according to law. The projects shall be dismantled or the relevant formalities shall be completed as appropriate.

Where the project approval documents are obtained by deception, bribery or other improper means and the construction has not yet started, the project approval authorities shall revoke the approval documents and impose a fine of not less than 1 ‰ but not more than 5 ‰ of the total investment in the projects; where the construction has started, the penalty shall be imposed in accordance with the provisions of the preceding paragraph; where such acts constitute crime, the criminal responsibility shall be investigated in accordance with the law.

Article 45

Where the enterprises invest in the construction projects prohibited by their industrial policies, the competent government departments of investment at or above the district level shall order them to stop construction or stop production and restore to their original states, impose a fine of not less than 5‰ but not more than 10‰ on the total investment of the projects, and impose a fine of not less than 50,000 yuan but not more than 100,000 yuan on the persons in charge directly responsible and the other persons directly responsible. If they are state personnel, they shall be punished according to law. Where there are other provisions in laws and administrative regulations, such provisions shall be followed.

Article 46

Where the project units fail to comply with the laws and regulations on housing and urban-rural construction management, planning resources, ecological environment, safety supervision, water (ocean) and energy conservation examination, and the requirements of relevant approval documents in the process of project construction, the relevant departments shall deal with them in accordance with the law.

Article 47

Where the engineering consultation and assessment units and their personnel that undertake the tasks of compiling the project application reports and assessment and the experts that participate in expert assessment, violate the working rules and cause heavy losses and adverse effects in the process of preparing the project application reports, conducting assessment while entrusted by the project approval authorities or participating in the expert review, they shall be dealt with in accordance with the Procedures for the Management of Engineering Consulting Industry and other relevant provisions. Those who violate the law shall be investigated for legal responsibility according to law.

Chapter VII  Supplementary Provisions

Article 48

The fixed asset investment projects invested and constructed by the non-enterprise organizations, such as public institutions and social organizations that use their own funds and do not apply for government investment and construction in China shall be managed as the enterprise investment projects.

Article 49

These Procedures shall be effective as of April 1, 2019 and be valid until December 31, 2023.