Six ministries issued the "Trial Measures for Asset Management of Urban Infrastructure"

On August 26, the Ministry of Finance and five other departments issued the "Regulations on the Management of Municipal Infrastructure Assets (Trial)". The regulation emphasizes that municipal infrastructure assets invested and built by the government should strictly follow the basic construction approval procedures in accordance with the law, implement funding sources, strengthen budget constraints, and prevent government debt risks. It is strictly forbidden to illegally borrow for municipal infrastructure assets that have no profit or insufficient profit, and hidden debts shall not be increased. The income generated by the paid use of municipal infrastructure built through the issuance of local government special bonds during the maintenance period shall be used in accordance with the regulations to first repay the principal and interest of the corresponding project's local government special bonds and shall not be used for other purposes. The regulation points out that the financial department, together with the competent department, will promote effective alignment of municipal infrastructure asset management and budget management, and will use the status of existing municipal infrastructure assets, maintenance and repair status, and performance as important basis for arranging funds for project construction and maintenance. The competent department and management units shall strengthen the effective activation and efficient utilization of municipal infrastructure assets. The regulation also states that the competent department should scientifically allocate municipal infrastructure assets based on city development plans, city needs, fiscal capacity, adhere to green environmental protection, energy conservation, and sustainable development concepts. The funding sources for municipal infrastructure assets include fiscal appropriations, bond funds, self-raised funds by units, etc., and the allocation methods include construction, purchase, adjustment, and donation acceptance, etc. The original text is as follows: Regulations on the Management of Municipal Infrastructure Assets (Trial) Chapter I General Provisions Article 1 In order to standardize and strengthen the management of municipal infrastructure assets and better play the public service functions of municipal infrastructure assets, these regulations are formulated in accordance with the Opinions of the Communist Party of China Central Committee on Establishing the System of Reporting to the Standing Committee of the National People's Congress on the Management of State-owned Assets by the State Council, and the Administrative Regulations on the Management of Administrative and Public Institutions' State-owned Assets (State Council Order No. 738). Article 2 These regulations apply to the management and maintenance activities of municipal infrastructure assets maintained by administrative and public institutions implementing the government accounting system. Article 3 Municipal infrastructure assets referred to in these regulations are assets such as engineering facilities controlled to meet the living needs of urban residents and public service requirements, promoting the sustainable development of cities. Municipal infrastructure assets are categorized according to their functions and characteristics, including transportation facilities, water supply and drainage facilities, energy facilities, sanitation facilities, landscaping facilities, comprehensive facilities, information and communication facilities, and other municipal facilities. (1) Transportation facilities include urban roads, urban bridges, urban tunnels, urban public transportation service facilities, urban passenger ferry facilities, urban rail transportation facilities, and other transportation facilities; (2) Water supply and drainage facilities include urban water supply facilities, urban drainage and sewage treatment facilities, and other water supply and drainage facilities; (3) Energy facilities include urban gas facilities, central heating facilities, and other energy facilities; (4) Sanitation facilities include domestic waste collection and treatment facilities, construction waste collection and treatment facilities, public toilets, and other sanitation facilities; (5) Landscaping facilities include park green spaces, square land, protective green spaces, affiliated green spaces, and other landscaping facilities; (6) Comprehensive facilities include underground comprehensive pipe galleries, and other comprehensive facilities; (7) Information and communication facilities include information infrastructure, and other information and communication facilities; (8) Other municipal facilities include city lighting facilities, public parking facilities, and other facilities. Article 4 The management of municipal infrastructure assets shall follow a classified and responsible management system. The financial department, the competent department of municipal infrastructure, the project construction unit, and the administrative and public institutions responsible for maintenance shall be responsible for the management of municipal infrastructure assets according to their respective responsibilities. The competent department refers to the department responsible for managing transportation, drainage, water supply, gas, heating, city appearance and sanitation, landscaping, information and communication facilities, city lighting facilities, etc., in accordance with the regulations of the local government. Article 5 The Ministry of Finance, together with relevant departments of the State Council, shall formulate national regulations on the management of municipal infrastructure assets, and organize national management, supervision, and inspection of municipal infrastructure assets. Relevant departments of the State Council, including housing and urban-rural development, industry and information technology, public security, transportation, and water resources, shall carry out the management of municipal infrastructure assets according to their respective responsibilities. Article 6 Local fiscal departments, together with local competent departments, are responsible for organizing the management and supervision of municipal infrastructure assets in the local area and accepting guidance and supervision from higher-level fiscal departments. Local competent departments are responsible for organizing management units to carry out the management of municipal infrastructure assets in the local area, reporting on the management situation of municipal infrastructure assets, reviewing or approving matters related to the management of municipal infrastructure assets according to prescribed responsibilities and permissions, and accepting guidance and supervision from relevant higher-level competent departments. Article 7 Each construction unit is responsible for the project construction and maintenance work of relevant municipal infrastructure assets and for processing the delivery and use of municipal infrastructure assets that meet the conditions. Article 8 Each management unit is responsible for the inventory, registration, accounting, maintenance operation, disposal approval, income collection, and asset reporting of municipal infrastructure assets it manages. Article 9 The management of municipal infrastructure assets shall follow the principles of overall coordination, consistent responsibilities, standardized accounting, and comprehensive reporting. (1) Overall coordination: reasonable division of responsibilities between competent departments and management units, strengthening overall coordination of municipal infrastructure asset management, adhering to the principles of equal emphasis on construction and management, strengthening asset management awareness, and ensuring the safety and integrity of municipal infrastructure assets. (2) Consistent responsibilities: establishing a hierarchical management system with consistent responsibilities among financial departments, competent departments, construction units, and management units, adhering to the principle of whoever manages and maintains is responsible, promoting the rational allocation, scientific management, and standardized disposal of municipal infrastructure assets. (3) Standardized accounting: implementing the national unified accounting system, strict asset confirmation and registration accounting for municipal infrastructure assets formed by various investment and construction methods. (4) Comprehensive reporting: Implement the requirements of the state-owned asset reporting system, include all municipal infrastructure asset management situations into the report on administrative and public institutions' state-owned assets, ensure full coverage and accuracy. Article 10 (tio) - line, article, clause The Ministry of Finance will work together with the relevant departments to promote the effective connection between the management of municipal infrastructure assets and budget management, making the situation of municipal infrastructure assets, maintenance and repair, and performance as important basis for the allocation of funds for project construction and maintenance. The relevant departments and management units should strengthen the effective activation and efficient utilization of municipal infrastructure assets.Chapter 2 Configuration Management Article 11 The competent department shall, based on urban development plans, urban needs, and fiscal capacity, adhere to the concept of green environmental protection, energy conservation, high efficiency, and sustainable development, and scientifically allocate municipal infrastructure assets. Article 12 The sources of funds for municipal infrastructure assets include fiscal appropriations, bond funds, unit self-raised funds, etc. The allocation methods include construction (including new construction, reconstruction, expansion, etc.), acquisition, adjustment, acceptance of donations, etc. Article 13 Government-invested municipal infrastructure assets should strictly follow the basic construction approval procedures in accordance with the law, implement the source of funds, strengthen budget constraints, and prevent government debt risks. It is strictly forbidden to illegally borrow money for municipal infrastructure assets that do not generate or generate insufficient revenue, and implicit debt must not be increased. Article 14 The finance department and competent department shall supervise and guide the construction unit to accelerate the completion of financial settlements of projects, and handle relevant financial adjustments, asset transfers, etc. When a project involves transfer to multiple management units or partial transfer, the construction unit should handle the financial settlement division and transfer separately. Chapter 3 Maintenance and Use Management Article 15 The competent department shall determine the management unit based on the municipal infrastructure asset management system of the local government. If the management unit cannot be determined, it shall be clarified by the people's government at or above the county level. Article 16 The management unit shall establish and improve the responsibility system for managing municipal infrastructure assets, implement management responsibilities, and maintain the safety and integrity of assets. Article 17 The management unit shall conduct daily inspections and maintenance of municipal infrastructure assets in accordance with national regulations and technical standards to ensure that municipal infrastructure assets are in normal operating condition. Article 18 Management units with the qualification to purchase government services may purchase daily maintenance services for municipal infrastructure assets through government service procurement methods. Article 19 Unless otherwise regulated by the state, income generated by user fees from municipal infrastructure assets managed and maintained by administrative units belongs to government non-tax revenue and should be managed in accordance with relevant regulations on government non-tax revenue and treasury centralized collection system. Income generated by user fees from municipal infrastructure assets managed and maintained by public institutions shall be managed according to specific methods specified by the local finance department. Expenditures related to the construction, maintenance, and management of municipal infrastructure assets shall be executed in accordance with budget management regulations. Article 20 Income generated during the management and maintenance period of municipal infrastructure assets constructed through the issuance of local government special bonds shall be prioritized for the repayment of the principal and interest of the corresponding local government special bonds and must not be diverted for other purposes. Chapter 4 Disposal Management Article 21 The disposal methods of municipal infrastructure assets include scrapping, loss write-off, gratuitous transfer, exchange, transfer, etc. Article 22 If any of the following conditions are met, the management unit shall promptly scrap or write-off losses: (1) Needs to be demolished according to local municipal plans; (2) Technically required to be eliminated or unable to be repaired, with no repair value; (3) Involves inventory losses or abnormal losses; (4) Has exceeded its service life and cannot meet basic public service needs; (5) Damaged or lost due to force majeure such as natural disasters. Article 23 The disposal of municipal infrastructure assets shall follow the approval procedures specified by the competent department, and the management unit shall promptly adjust or write off accounts. Article 24 Unless otherwise regulated by the state, income generated from the disposal of municipal infrastructure assets shall be turned over to the national treasury in accordance with relevant regulations on government non-tax revenue and treasury centralized collection management. Chapter 5 Fundamental Management Article 25 Management units shall promptly register and record municipal infrastructure assets in accordance with the unified national accounting system and shall not create off-balance sheet assets. Article 26 Management units shall conduct regular inventory and reconciliation of municipal infrastructure assets to ensure that accounts, cards, and actual assets match. In case of changes in asset value, the management unit shall promptly adjust relevant accounts. Article 27 The finance department, competent department, and management unit shall improve the management of government debt corresponding to municipal infrastructure assets in accordance with relevant regulations on government debt management. Article 28 The finance department, competent department, and management unit may conduct municipal infrastructure asset inventory work according to work needs, and the inventory work shall be carried out in accordance with the relevant procedures for administrative and public institution asset inventory. Article 29 If asset evaluation of municipal infrastructure assets is required according to relevant state regulations, a qualified asset evaluation organization shall be hired to carry out the asset evaluation. Article 30 The finance department, competent department, and management unit shall establish a comprehensive performance management system for municipal infrastructure assets, conduct pre-performance assessments, strengthen performance goal management, implement performance monitoring, conduct performance evaluations, link performance evaluation results with decision-making for new projects, construction funds, and management fees, and improve the efficiency of financial fund asset allocation. Chapter 6 Information Management Article 31 The finance department, competent department, and management unit shall, in accordance with the requirements of asset management informatization, utilize digital, visual, intelligent information technology to dynamically manage municipal infrastructure assets, and regions with conditions may implement management in conjunction with geographic information maps. Article 32 The asset information card of municipal infrastructure assets is the basis for registering and recording municipal infrastructure assets. The finance department and other departments shall formulate data standard for the management of municipal infrastructure assets and release the basic format of the asset information card based on the integration of budget management system. Article 33 The competent department and management unit may design specific data information items for the asset information card of municipal infrastructure assets according to actual needs, and ensure connection with the integrated information system for budget management. Article 34 The management unit shall collect information on municipal infrastructure assets as required, truthfully record asset information cards, and establish a complete municipal infrastructure asset information database. If there are changes in asset management information, the management unit shall promptly update to ensure that data is true, accurate, and complete. Article 35The finance department and the responsible department should accelerate the collection, integration, services, and openness of urban infrastructure data, promote the sharing and connection of asset information data of urban infrastructure with industry management information data.Chapter VII Asset Report Article 36 The management of municipal infrastructure assets is an integral part of the state-owned assets report and should be included in the annual report of administrative and public sector state-owned assets. Article 37 The Ministry of Finance organizes the compilation of the national annual report on administrative and public sector state-owned assets, clarifying the requirements for municipal infrastructure asset reporting, reviewing and summarizing the management of municipal infrastructure assets nationwide, reporting to the State Council for approval, and reporting to the Standing Committee of the National People's Congress according to the prescribed procedures. Article 38 Local financial departments review and summarize the management of municipal infrastructure assets at the local and subordinate levels, submit reports to the local government and the superior financial department, and report to the local Standing Committee of the People's Congress according to the prescribed procedures. Article 39 The competent authority reviews and summarizes the management of municipal infrastructure assets of the affiliated management units and submits it to the local financial department. Article 40 The management unit shall submit the management of municipal infrastructure assets of the unit to the competent authority in accordance with the prescribed procedures and be responsible for the authenticity, accuracy, and completeness of the asset report. Article 41 The main contents of the municipal infrastructure asset report include: (1) Basic information on municipal infrastructure assets, including types, quantities, book values, and assets formed by debt; (2) Establishment and implementation of relevant management systems for municipal infrastructure assets; (3) Formation, management, maintenance, use, disposal, and income of municipal infrastructure assets; (4) Other matters that need to be reported. Article 42 The competent authority and the management unit shall organize the implementation of the rectification of the deliberation opinions on the management of municipal infrastructure assets by the local People's Congress according to the unified deployment of the local government and report on the rectification. Chapter VIII Supervision and Inspection Article 43 The financial department and the competent authority may conduct special supervision and inspection of municipal infrastructure asset management on a regular or irregular basis according to work needs. Article 44 If there is abuse of power, negligence of duty, favoritism and fraud, or other illegal and irregular behaviors in the work of municipal infrastructure asset management by the financial department, competent authority, management unit, and their staff, corresponding responsibilities shall be pursued according to law. If it constitutes a crime, criminal responsibility shall be pursued according to law. Chapter IX Supplementary Provisions Article 45 Business units implementing enterprise financial and accounting systems and municipal infrastructure assets managed by state-owned enterprises shall establish auxiliary accounts or backup books for management, and relevant management situations shall be reflected in the annual report of administrative and public sector state-owned assets of the competent authority. Article 46 Provincial financial departments and competent authorities shall, in accordance with these regulations, combine the actual situation of municipal infrastructure asset management in their respective regions, formulate specific implementation measures, and report to the Ministry of Finance and the relevant competent authorities under the State Council for the record. Article 47 These regulations shall come into force on September 1, 2024. This article is selected from the "Ministry of Finance"; Editor: Chen Xiaoyi.