Processed by: Shanghai Development Planning Commission (Foreign Fund Utilization Office)
Formalities:
1.The construction project shall conform to Shanghai's overall planning for economic and social development as well as the relevant policies and statutes.
2.Either the construction entity or its competent department shall present the relevant project proposal and feasibility study report.
Procedures: 1. Procedures for examining and approving the project of utilizing foreign government's loan
(1) Project proposal: The construction entity puts forward project proposal, submits to Shanghai Development Planning Commission after the examination and verification by its superior district, county or bureau, and then Shanghai Development Planning Commission, in joint effort with the relevant authorities, organizes examination and approval. For those projects that will borrow at least 5 million US dollars from foreign government, Shanghai Development Planning Commission shall submit to the State Development Planning Commission for examination and approval after its examination and verification over the project together with the relevant authorities.
(2) Feasibility study report: The construction entity shall not proceed with the feasibility study of the project until it receives the relevant documents classifying the project into a state-level backup loan program issued by the State Development Planning Commission. Its feasibility study report shall be submitted to Shanghai Development Planning Commission after the examination and verification by the competent district, county or bureau, and then the Shanghai Development Planning Commission, in joint effort with the relevant authorities, organizes examination and approval. For those projects that will borrow at least 5 million US dollars from foreign government, Shanghai Development Planning Commission shall submit to the State Development Planning Commission and the relevant authorities for examination and approval after its examination and verification over the project with the relevant authorities.
(3) Letter of confirmation for the domestic and foreign-funded projects encouraged by the state for development: In accordance with the relevant provisions of the state, after the feasibility study report has been approved, for those eligible projects in the "encouraged" category, Shanghai Development Planning Commission will issue the Letter of Confirmation for the Domestic and Foreign-funded Projects Encouraged by the State for Development or forward the same document issued by the State Development Planning Commission. The project construction entity may go through the procedures of tax exemption of imported equipment at the customs house directly governing the project.

2. Procedures for examining and approving the project of utilizing loan of international financial organization (the World Bank, the Asia Development Bank)
(1) Confirmation for the selection of project and loan plan: The competent district, county or bureau for the project puts forward the projects to be selected, and submits them to Shanghai Development Planning Commission and the governing commissions and offices, and after the initial examination by Shanghai Development Planning Commission, the project will be submitted to the State Development Planning Commission for examination and approval. After being considered by the State Development Planning Commission, the eligible projects will be officially proposed, and will be listed in the three-year rolling plan for the World Bank (or Asia Development Bank)'s loan with the consent from the World Bank (Asia Development Bank).
(2) Project proposal: The construction entity formulates the project proposal, and submits it to Shanghai Development Planning Commission after being examined and verified by the competent district, county or bureau, and then the Shanghai Development Planning Commission organizes the initial examination and submits it to the State Development Planning Commission. After the project proposal is approved, following steps may be taken. According to the loan procedures of the World Bank (Asia Development Bank), a foreign consulting firm shall be selected for relevant consultation in the form of selected bidding, and after the pre-assessment and formal assessment by the World Bank, the project will be submitted to the board of executive directors of the World Bank (Asia Development Bank) for adoption when the negotiation of project is completed.
(3) Feasibility study report: Based on the approved project proposal and the advisory opinions of the consulting firm, the construction entity conducts project feasibility study and formulates the feasibility study report, and then the competent district, county or bureau submits the report to Shanghai Development Planning Commission, the relevant commissions and offices as well as the Shanghai Finance Bureau, and after that, the Shanghai Development Planning Commission organizes the initial examination and submits it to the State Development Planning Commission for examination and approval.
(4) Letter of confirmation for the domestic and foreign-funded projects encouraged by the state: In accordance with the relevant provisions of the state, when the feasibility study report has been approved, for those eligible projects in the "encouraged" category, Shanghai Development Planning Commission will issue the "Letter of Confirmation for the Domestic and Foreign-funded Projects Encouraged by the State for Development" or forward the same document issued by the State Development Planning Commission. The project construction entity may go through the procedures for tax exemption of imported equipment with the customs house directly governing the project.
(5) Adjustment of project budget: The construction entity comes up with a request for instructions on adjustment of project budget, depending on the actual conditions of project implementation, and then the competent district, county or bureau submits the request to Shanghai Development Planning Commission, the relevant commissions and offices as well as the Shanghai Finance Bureau, and after that, the Shanghai Development Planning Commission organizes the relevant authorities to make the examination and approval or submit it to the State Development Planning Commission for examination and approval after its verification.
Charge rate and basis: 1. Notice on Printing and Distributing Administrative Rules on Using Loans from Foreign Government (Provisional)(W.J.M.D.F.No.305)

2. Notice on Strengthening the Management over Projects of Borrowing International Commercial Loans (J.W.Z.[1993] No.2555)

3. Suggestions on Work Assignment in Utilizing Foreign Loan by the State Planning Commission with the Approval from the State Council (G.F. (1986) No.83)

4. Regulations of Shanghai for Managing Foreign Debt (S.R.M.Z.F.L. [90] No.31)
Submitted to: Shanghai Development Planning Commission
Processed at: Rm. 1102, 200 Renmin Avenue, Shanghai
Basis: 1. Notice on Printing and Distributing Administrative Rules on Using Loans from Foreign Government (Provisional)(W.J.M.D.F.No.305)

2. Notice on Strengthening the Management over Projects of Borrowing International Commercial Loans (J.W.Z.[1993] No.2555)

3. Suggestions on Work Assignment in Utilizing Foreign Loan by the State Planning Commission with the Approval from the State Council (G.F. (1986) No.83)

4. Regulations of Shanghai for Managing Foreign Debt (S.R.M.Z.F.L. [90] No.31)
Tel.: 63212810-2813
Website:
Office hours: 9:00 a.m. - 12:00 a.m. 13:30 p.m. - 18:00 p.m. Monday to Friday
Period: For those project proposals with complete materials and conforming to the requirement of examination and approval, the result of processing will be given within 15 business days since the official acceptance.
Qualification of the applicant: The construction entities, their superior authorities or districts or counties