Measures for the Interim and Ex Post Supervision of Enterprise Investment Projects

· Document Number：Order No. 14 of the National Development and Reform Commission

· Area of Law： Enterprises

· Level of Authority： Departmental Rules

· Date issued：01-04-2018

· Effective Date：02-04-2018

· Status： Effective

· Issuing Authority： State Development & Reform Commission (incl. former State Development Planning Commission)

Order of the National Development and Reform Commission
(No. 14)
The Measures for the Interim and Ex Post Supervision of Enterprise Investment Projects, as deliberated and adopted at the Director's Executive Meeting of the National Development and Reform Commission, are hereby issued, and shall come into force on February 4, 2018.
Director: He Lifeng
January 4, 2018
Measures for the Interim and Ex Post Supervision of Enterprise Investment Projects
Chapter I General Provisions
Article 1 For the purposes of strengthening the interim and ex post supervision of enterprise investment projects, regulating the investment activities of enterprises, and protecting the public interests and the lawful rights and interests of enterprises, these Measures are developed in accordance with the Administrative Licensing Law, the Law on Administrative Penalty, the Regulation on the Administration of the Confirmation and Recordation of Enterprise Investment Projects and other laws and regulations.
Article 2 These Measures shall apply to the interim and ex post supervision and administration conducted by the development and reform departments at all levels according to their confirmation and recordation functions of the confirmation and recordation of the fixed asset projects (hereinafter referred to as the “projects”) invested and constructed by enterprises within the territory of China.
Article 3 “Interim and ex post supervision of a project” means the supervision and administration conducted by the development and reform departments at all levels of whether the approval documents for confirmation have been obtained or the recordation formalities have been undergone according to the law before the commencement of the project and whether the construction is conducted according to the approval documents for confirmation or the recordation contents after the commencement of the project.
The development and reform departments at all levels conducting interim and ex post supervision of projects shall perform their respective functions and assume their respective responsibilities in respect of the interim and ex post supervision with the competent departments of planning, environmental protection, national land, construction and work safety, among others, and strengthen coordination and cooperation therewith.
Article 4 The development and reform departments at all levels shall conduct hierarchical and classified supervision and administration of projects.
The confirmation authority shall supervise and administer the projects for which the approval documents for confirmation have been obtained; and the recordation authority shall supervise and administer the projects for which the recordation formalities have been undergone. Whether a project has legally obtained the approval documents for confirmation or undergone the recordation formalities shall be supervised and administered by the local development and reform department at or above the county level in the place where the project is located.
Article 5 The development and reform departments at all levels shall establish and improve the procedures for administrative supervision and regulatory law enforcement, strengthen the construction of the regulatory law enforcement teams, guarantee the funds for regulatory law enforcement, and exercise their supervision and administration functions according to the law.
The audit of government investment projects and the enterprise investment projects using government investment shall be governed by the relevant provisions.
Chapter II Supervision and Administration of Confirmed Projects
Article 6 A confirmation authority shall supervise and administer the projects that it has confirmed from the following respects:
(1) Whether the basic information on construction such as commencement of construction, construction progress and completion of the project is submitted through the national online approval and supervision platform for investment projects (hereinafter referred to as the “online platform”) in a faithful and timely manner.
(2) Whether the modification formalities are undergone as required ,if the confirmed construction site needs to be modified or the confirmed construction scale and construction contents are significantly modified.
(3) Whether the formalities of postponement of construction commencement are undergone as required, if construction commencement needs to be postponed.
(4) Whether the project is constructed according to the confirmed construction site, construction scale and construction contents, among others.
Article 7 A confirmation authority shall, according to the industry characteristics, supervision needs and the principles of simplicity and operability, develop and publish online the format text for the basic information on the construction of the confirmed projects to be submitted, and conduct online monitoring of the basic construction information submitted.
Article 8 A confirmation authority shall conduct on-site inspection of a project it has confirmed at least once after the commencement of the project.
Article 9 Where the basic information on the construction of a confirmed project that has been commenced are not submitted in a faithful and timely manner, the confirmation authority shall order the project entity to make corrections; and, if the project entity refuses to make corrections, give it a warning.
Article 10 Where a project is commenced without obtaining the approval document for confirmation or the project modification approval document as required or after expiration of the aforesaid approval document, the confirmation authority shall order suspension of construction or production, and impose a fine according to the law.
Article 11 Where a project is not constructed in accordance with the confirmed construction site, construction scale, and construction content, among others, the confirmation authority shall order suspension of construction or production, and impose a fine according to the law.
Where the relevant department determines that the project construction content belongs to investment and construction prohibited by the industrial policy, the confirmation authority shall order suspension of construction or production and restoration to the original state, and impose a fine according to the law.
Article 12 Where a local development and reform department at or above the county level finds that a project within its administrative region is included in the Catalog of Investment Projects Confirmed by the Government but is commenced without obtaining the approval document for confirmation or project modification approval document or after expiration of the aforesaid approval document, it shall report to the authority with the power to confirm the project, and the confirmation authority shall order suspension of construction or production, and impose a fine according to the law.
Chapter III Supervision of the Recorded Projects
Article 13 A confirmation authority shall supervise and administer a recorded project from the following respects:
(1) Whether the basic information on construction such as commencement of construction, construction progress and completion of the project is submitted through the online platform in a faithful and timely manner.
(2) Where the project is subject to confirmation administration.
(3) Where the project is constructed according to the recorded construction site, construction scale and construction contents.
(4) Whether it is a project whose investment and construction is prohibited by the industrial policies.
Article 14 A recordation authority shall, according to the industry characteristics, supervision needs and the principles of simplicity and operability, develop and publish online the format text for the basic information on the construction of the recorded projects to be submitted, and conduct on-line monitoring of the basic construction information submitted.
Article 15 Where a project has not been commenced or has not undergone any other formalities within two years after recordation, the project entity shall make an explanation on the online platform if it decides to continue to implement the project; and shall withdraw the recorded information, if it decides not to continue to implement the project.
Where neither explanation is made for the project as prescribed in the preceding paragraph, nor the recorded information is withdrawn, the recordation authority shall remind the project entity. Where the project entity fails to take measures accordingly after being reminded, the recordation authority shall remove the recorded information that has been disclosed to the public, and the recordation certification documents obtained by the project entity shall be automatically invalidated. Where an unauthentic project is intentionally reported for recordation and the accuracy of the investment information is affected, the recordation authority may include the project in the list of anomaly and disclose it to the public.
Article 16 The recordation authority shall, under the principle of “random selection of inspection objects, random assignment of inspectors, and public disclosure of inspection results” and in consideration of the actual needs of investment regulation and control, develop on-site inspection plans on a regular basis for the projects recorded. The recordation authority shall conduct on-site inspection of a project included in the plan of on-site inspection at least once after commencement of the project. The proportion of the projects included in the on-site inspection plan shall be determined by the recordation authority in light of the actual circumstances.
Article 17 Where the basic information on the construction of a recorded project that has been commenced are not submitted in a faithful and timely manner, the recordation authority shall order the project entity to make corrections; and, if the project entity refuses to do so, give it a warning.
Article 18 Where the project construction is inconsistent with the recorded information, the recordation authority shall order the project entity to take corrective action within a prescribed time limit; and where no corrective action has been taken within a prescribed time limit, the project entity shall be fined and be included in the list of dishonest enterprises according to the law, and be disclosed to the public.
Where the relevant department determines that the project construction content belongs to investment and construction prohibited by the industrial policy, the recordation authority shall order suspension of construction or production and restoration to the original state according to the law, and impose a fine according to the law.
Article 19 Where the local development and reform department at or above the county level finds that a commenced project within its administrative region fails to undergo the recordation formalities according to the law while it is required to do so, it shall report to the authority with the power to grant recordation to the project, and the recordation authority shall order the project entity to take corrective action within a prescribed time limit; and where no corrective action has been taken within a prescribed time limit, the project entity shall be fined according to the law, be included in the list of dishonest enterprises, and be disclosed to the public.
Article 20 Where a commenced project within the administrative region is determined by a relevant department to belong to investment and construction prohibited by the industrial policies, the development and reform department at or above the county level shall order suspension of construction or production and restoration to the original state, and impose a fine according to the law.
Chapter IV Supervision Procedures and Methods
Article 21 The development and reform departments at all levels may conduct on-site inspections of projects either on their own or through an authorized third-party institution by giving play to the professional advantages of the engineering consulting entities and other institutions.
Where third-party institutions are authorized to conduct on-site inspections, a list of inspection institutions shall be established, the inspection specifications shall be developed, and guidance and supervision on the inspections shall be strengthened. The costs for authorizing a third-party institution to conduct on-site inspection shall be assumed by the principal.
Article 22 The development and reform departments at all levels shall, by relying on the online platform and utilizing the big data, Internet, mobile computing and other information technology means, strengthen the analysis, study and judgment of various kinds of information and improve the capacity of finding clues to problems.
Article 23 The development and reform departments at all levels shall smooth the channels for filing complaints and reports, and handle the clues to the problems reflected in the complaints and reports in a timely manner.
Article 24 As to the suspected violations of law that it has discovered, the development and reform departments at all levels shall file cases and conduct investigation according to the statutory power and procedures, and make handling decisions.
The clues to the violation of laws and regulations involving the functions and powers of other departments shall be transferred in a timely manner. Whoever is suspected of a crime shall be transferred to the judicial authority to be held criminally liable.
Article 25 The development and reform departments at all levels shall collect the information on administrative punishments on the projects through the online platform and disclose it to the public through the online platform and the website of “Credit China.”
The list of anomaly and list of dishonest enterprises formed in the interim and ex post supervision and administration of projects shall be shared on the online platform and the national credit information platform, be disclosed to the public through the website of “Credit China,” and joint disciplinary actions shall be taken.
Article 26 The development and reform departments at all levels shall establish and improve the coordinated supervision and administration and joint law enforcement mechanisms in conjunction with the competent departments of planning, environmental protection, national land, construction and work safety, among others, participate in the comprehensive law enforcement work conducted by the people's governments at the corresponding levels, and improve the efficiency of regulatory law enforcement.
Article 27 The development and reform departments at all levels shall establish and improve the interim and ex post project supervision responsibility system and accountability system, and urge the development and reform departments at lower levels to implement the work responsibilities through holding interviews, supervision of handling, taking back confirmation power from lower levels and other measures.
Chapter V Legal Liability
Article 28 The term “warning” as referred to in Articles 9 and 17 of these Measures means one type of administrative penalties as prescribed in the Law on Administrative Penalty, and shall be imposed by the development and reform departments at all levels according to the statutory procedures and requirements.
Article 29 The circumstances and extent of imposing fines by the confirmation authority upon projects for which the confirmation formalities have not been undergone as required and projects that are not constructed according to the confirmed construction site, construction scale and construction contents, among others, shall be governed by Article 18 of the Regulation on the Administration of the Confirmation and Recordation of Enterprise Investment Projects.
Article 30 The circumstances and extent of imposing fines by the recordation authority upon projects for which the recordation formalities have not been undergone as required and projects of which the construction is inconsistent with the recordation information shall be governed by Article 19 of the Regulation on the Administration of the Confirmation and Recordation of Enterprise Investment Projects.
Article 31 The circumstances and extent of imposing fines upon projects that belong to investment and construction prohibited by the industrial policies shall be governed by Article 20 of the Regulation on the Administration of the Confirmation and Recordation of Enterprise Investment Projects.
Article 32 Violators of these Measures who have actively cooperated with the investigation, diligently conducted rectification and made correction, and actively eliminated or mitigated the harmful consequences may be given mitigated punishment within the statutory extent.
Chapter VI Supplementary Provisions
Article 33 Where there are other provisions on interim and ex post supervision and administration of foreign investment projects, such provisions shall apply
Article 34 Except the projects arranged through budgets, the interim and ex post supervision and administration of projects invested and constructed by public institutions, social organizations and other non-enterprise organizations within the territory of China shall be governed by these Measures.
Article 35 The power to interpret these Measures shall remain with the National Development and Reform Commission.
Article 36 These Measures shall come into force on February 4, 2018.