Measures for the Management of Municipal Infrastructure Assets (Policy Release)

Measures for 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 give better play to the public service function of municipal infrastructure assets, these Measures are formulated in accordance with the "Opinions of the Central Committee of the Communist Party of China on the Establishment of a System for the State Council to Report to the Standing Committee of the National People's Congress on the Management of State owned Assets", the "Regulations on the Administration of State owned Assets of Administrative Institutions" (Order No. 738 of the State Council) and other provisions.

Article 2   These Measures apply to the management and maintenance of municipal infrastructure assets by administrative institutions that implement the government accounting standards system.

Article 3    The municipal infrastructure assets referred to in these Measures refer to engineering facilities and other assets that are controlled to meet the living needs and public service needs of urban residents and promote sustainable urban development. Municipal infrastructure assets are divided into transportation facilities, water supply and drainage facilities, energy facilities, environmental sanitation facilities, landscaping facilities, comprehensive facilities, information and communication facilities, and other municipal facilities according to their functions and characteristics.

（1） Transportation facilities include urban roads, urban bridges, urban tunnels, urban public bus and tram passenger service facilities, urban passenger ferry facilities, urban rail transit facilities, other transportation facilities, etc;

（2） Water supply and drainage facilities include urban water supply facilities, urban drainage and sewage treatment facilities, other water supply and drainage facilities, etc;

（3） Energy facilities include urban gas facilities, centralized heating facilities, other energy facilities, etc;

（4） Environmental sanitation facilities include facilities for the collection and treatment of household waste, construction waste, public toilets, and other environmental sanitation facilities;

（5） Landscaping facilities include park green spaces, square land, protective green spaces, ancillary green spaces, and other landscaping facilities;

（6） Comprehensive facilities include underground comprehensive pipe galleries, other comprehensive facilities, etc;

（7） Information and communication facilities include information infrastructure, other information and communication facilities, etc;

（8） Other municipal facilities include urban lighting facilities, public parking facilities, and other facilities.

Article 4 The management of municipal infrastructure assets shall implement a hierarchical classification and division of labor responsibility management system. The finance department, the competent department of the municipal infrastructure industry (hereinafter referred to as the competent department), the unit responsible for project construction (hereinafter referred to as the construction unit), and the administrative institution responsible for management and maintenance (hereinafter referred to as the management and maintenance unit) 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 the transportation, drainage, water supply, gas, heating, urban sanitation, landscaping, information and communication, urban lighting and other facilities of the local government in accordance with the regulations of each level of government.

Article 5 The Ministry of Finance, in conjunction with relevant competent departments of the State Council, shall formulate a national system for the management of municipal infrastructure assets and organize the management, supervision, and inspection of municipal infrastructure assets nationwide. The competent departments of the State Council for housing and urban-rural development, industry and information technology, public security, transportation, water conservancy, etc. shall carry out the management of municipal infrastructure assets in accordance with their respective responsibilities.

Article 6 Local financial departments at all levels, in conjunction with their respective competent departments, are responsible for organizing and carrying out the management, supervision, and inspection of municipal infrastructure assets in their respective regions, and accepting guidance and supervision from higher-level financial departments. Local competent departments at all levels are responsible for organizing management and protection units to carry out local municipal infrastructure asset management work, reporting on the management of municipal infrastructure assets, reviewing or approving municipal infrastructure asset management matters in accordance with prescribed responsibilities and authorities, and accepting guidance and supervision from relevant superior competent departments.

Article 7 Each construction unit is responsible for the project construction and management of relevant municipal infrastructure assets during the construction period, and shall handle the delivery and use procedures for municipal infrastructure assets that meet the conditions.

Article 8 Each management and maintenance unit is responsible for the inventory, registration, accounting, maintenance and operation, disposal approval, revenue collection, asset reporting and other work of the municipal infrastructure assets managed and maintained by the unit.

Article 9 The management of municipal infrastructure assets shall follow the principles of overall coordination, consistent rights and responsibilities, standardized accounting, and comprehensive reporting.

（1） Overall coordination. Reasonably divide the responsibilities of the competent department and the management and maintenance unit, strengthen the overall coordination of municipal infrastructure asset management, adhere to the principle of equal emphasis on construction and management, enhance asset management awareness, and maintain the safety and integrity of municipal infrastructure assets.

（2） Consistency of rights and responsibilities. Establish a supervision and management mechanism with hierarchical management and consistent rights and responsibilities among the finance department, supervisory department, construction unit, and management unit, adhere to the principle of whoever manages and is responsible, and promote the rational allocation, scientific management, and standardized disposal of municipal infrastructure assets.

（3） Standardized accounting. Implement the national unified accounting system and strictly recognize and register the assets of municipal infrastructure formed by various investment and construction methods for accounting purposes.

（4） Comprehensive report. Implement the requirements of the state-owned asset reporting system, and include all the management of municipal infrastructure assets in the administrative state-owned asset report, ensuring full coverage and accuracy. Article 10: The financial department, together with the competent department, shall promote the effective connection between municipal infrastructure asset management and budget management, and take the stock, maintenance and repair, and performance of municipal infrastructure assets as important basis for arranging project construction and maintenance funds. The competent 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 the urban development plan and urban needs, and in combination with the financial capacity, adhere to the concepts of green environmental protection, energy conservation, high efficiency, and sustainable development, and scientifically allocate municipal infrastructure assets.

Article 12 The sources of funds for the formation of municipal infrastructure assets include government appropriations, bond funds, and self raised funds by units. The allocation methods include construction (including new construction, renovation, and expansion, the same below), purchase, adjustment, and acceptance of donations.

Article 13 Municipal infrastructure assets invested and constructed by the government shall 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 prohibited to illegally borrow money for municipal infrastructure assets that have no or insufficient returns, and it is not allowed to increase implicit debt.

Article 14 The financial department and the competent department shall supervise and guide the construction unit to accelerate the handling of financial final accounts for project completion in accordance with relevant requirements such as basic construction project management, and do a good job in corresponding financial adjustments, asset transfers, and other work. When a project is transferred to multiple management units or a part of a project is transferred, the construction unit should divide the financial settlement of the project completion and handle the transfer separately.

Chapter 3   Maintenance and use management

Article 15 The competent department shall determine the management and protection units based on the municipal infrastructure asset management system of the local government. If it is difficult to determine the management and protection unit, it shall be clarified by the people's government at or above the county level.

Article 16 Management and protection units shall improve the responsibility system for managing municipal infrastructure assets, implement management responsibilities, and maintain the safety and integrity of assets.

Article 17 Management and maintenance units shall conduct daily inspections and maintenance of municipal infrastructure assets in accordance with relevant national regulations and technical standards, ensuring that municipal infrastructure assets are in normal operation.

Article 18 Management and maintenance units with the qualification of government purchasing service purchasing entities may adopt the method of government purchasing services to purchase daily maintenance and other services of municipal infrastructure assets.

Article 19 Unless otherwise stipulated by the state, the paid use income generated from municipal infrastructure assets managed and maintained by administrative units belongs to government non tax revenue and should be managed in accordance with the relevant provisions of government non tax revenue and the centralized collection system of the national treasury; The revenue generated from the compensated use of municipal infrastructure assets managed and maintained by public institutions shall be subject to specific management measures formulated by the local financial department. Expenditures for the construction, maintenance, and management of municipal infrastructure assets shall be implemented in accordance with budget management regulations.

Article 20 The paid use income generated during the management and maintenance period of municipal infrastructure constructed through the issuance of local government special bonds shall be prioritized for repaying the principal and interest of the corresponding local government special bonds in accordance with regulations and shall not be used for other purposes. Chapter 4 Disposal Management.

Article 21 The disposal methods of municipal infrastructure assets include scrapping, loss verification, gratuitous transfer, replacement, transfer, etc.

Article 22 If one of the following conditions is met, the management and maintenance unit shall promptly carry out scrapping or loss verification:

（1） According to local municipal planning, those that need to be demolished;

（2） Those that need to be eliminated or cannot be repaired due to technical reasons, or have no repair value;

（3） Involving inventory losses and abnormal losses;

（4） Those that have exceeded their service life and cannot meet the basic needs of public services;

（5） Damage or loss caused by force majeure such as natural disasters.

Article 23 The disposal of municipal infrastructure assets shall be subject to approval procedures in accordance with relevant regulations of the competent department, and the management and protection unit shall promptly adjust or verify the accounts.

Article 24 Unless otherwise stipulated by the state, the 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 centralized collection and management of the national treasury.

Chapter 5   Basic Management

Article 25 Management and maintenance units shall timely register and record municipal infrastructure assets in accordance with the national unified accounting system, and shall not form off balance sheet assets.

Article 26 The management and maintenance unit shall conduct regular inventory and reconciliation of municipal infrastructure assets, ensuring that the accounts, cards, and physical records are consistent. If there are changes in asset value, the management and maintenance unit shall adjust the relevant accounts in a timely manner.

Article 27 Financial departments, supervisory departments, and management units shall, in accordance with relevant regulations on government debt management, improve information on the amount and form of debt corresponding to municipal infrastructure, and strengthen the management of municipal infrastructure assets formed by government debt.

Article 28 Financial departments, supervisory departments, and management units may carry out asset inventory of municipal infrastructure according to work needs, and the inventory work shall be carried out in accordance with the relevant procedures for asset inventory of administrative institutions.

Article 29 If it is necessary to conduct asset evaluation of municipal infrastructure assets in accordance with relevant national regulations, qualified asset evaluation institutions shall be hired to conduct asset evaluation.

Article 30 The financial department, competent department, and management and maintenance unit shall establish a full process performance management system for municipal infrastructure assets, carry out pre performance evaluation, strengthen performance target management, implement performance operation monitoring, conduct performance evaluation, link the performance evaluation results with new project decision-making, construction funds, and management and maintenance cost arrangements, and improve the efficiency of financial asset allocation.

Chapter 6   information management

Article 31 Financial departments, supervisory departments, and management units shall implement dynamic management of municipal infrastructure assets in accordance with the requirements of asset management informatization, using digital, visual, and intelligent information technology. In areas where conditions permit, management can be implemented in conjunction with geographic information maps.

Article 32 The municipal infrastructure asset information card is the basis for registering and recording municipal infrastructure assets. The Ministry of Finance and other departments have formulated data standards for the management of municipal infrastructure assets, and released the basic format of municipal infrastructure asset information cards based on the integrated budget management system.

Article 33 The competent department and management unit may design specific data information items related to the municipal infrastructure asset information card according to actual needs, and ensure smooth integration with the budget management integrated information system.

Article 34 The management and maintenance unit shall collect information on municipal infrastructure assets in accordance with regulations, input it into the asset information card based on the actual situation, and establish a comprehensive database of municipal infrastructure asset information. If there is a change in the management information of municipal infrastructure assets, the management and protection unit shall update it in a timely manner to ensure the authenticity, accuracy, and completeness of the data.

Article 35 The financial department and the competent department shall accelerate the collection, integration, service, and openness of municipal infrastructure data, and promote the sharing and connection of municipal infrastructure asset information data and industry management information data.

Chapter 7   Asset Report

Article 36 The management of municipal infrastructure assets is an integral part of the state-owned asset report and should be included in the annual report of administrative state-owned assets.

Article 37 The Ministry of Finance shall organize the preparation and submission of the annual report on national administrative state-owned assets, clarify the requirements for the reporting of municipal infrastructure assets, review and summarize the management of national municipal infrastructure assets, and report to the Standing Committee of the National People's Congress according to the prescribed procedures after being submitted to the State Council for examination and approval.

Article 38 Local financial departments at all levels shall review and summarize the management of municipal infrastructure assets at their own and lower levels, submit them to the local government and the higher-level financial department, and report to the standing committee of the local people's congress in accordance with prescribed procedures.

Article 39 The competent department shall review and summarize the management of municipal infrastructure assets of its affiliated management and protection units, and submit them to the local finance department.

Article 40 The management and protection unit shall submit the management situation of its municipal infrastructure assets to the competent department in accordance with the prescribed procedures, and shall be responsible for the authenticity, accuracy, and completeness of the asset report.

Article 41 The main contents of the report on municipal infrastructure assets include:

（1） Basic information of municipal infrastructure assets, including the type, quantity, recorded value, and debt formation assets of municipal infrastructure assets;

（2） The establishment and implementation of management systems related to municipal infrastructure assets;

（3） The formation, management, maintenance, use, disposal, and revenue of municipal infrastructure assets;

（4） Other matters that need to be reported. Article 42: The competent department and management unit shall, in accordance with the unified deployment of the local government, organize and implement the rectification work of the review opinions of the standing committee of the local people's congress on the management of municipal infrastructure assets, and report the rectification situation.

Chapter 8   Supervision and Inspection

Article 43 The financial department and the competent department may conduct regular or irregular special supervision and inspection of municipal infrastructure asset management according to work needs.

Article 44 If the financial department, competent department, management and protection unit and their staff engage in illegal and irregular behaviors such as abuse of power, dereliction of duty, favoritism and fraud in the management of municipal infrastructure assets, they shall be held accountable in accordance with the law. Those who commit crimes shall be held criminally responsible in accordance with the law.

Chapter 9   Supplementary Provisions

Article 45 Municipal infrastructure assets managed and maintained by public institutions and state-owned enterprises that implement enterprise financial and accounting systems shall be managed by the competent department through the establishment of auxiliary accounts or reference books. The relevant management situation shall be reflected in the annual report of the competent department on administrative state-owned assets.

Article 46 Provincial financial departments and competent departments shall formulate specific implementation measures in accordance with these Measures, combined with the actual situation of municipal infrastructure asset management in the local area, and report to the relevant municipal infrastructure competent departments of the Ministry of Finance and the State Council for the record.

Article 47 These Measures shall come into effect on September 1, 2024.