Q&A on Compiling an Application Report for Foreign-Invested Projects

To continue improving the examination and approval for projects with corporate investment, to guide enterprises to compile a good application report and to regulate approval procedures by the relevant organs, the National Development and Reform Commission (NDRC) issued the Notice on Releasing the Standard Text for the Application Report of a Project (Fagai touzi [2007] No. 1169) (Notice). All the application reports of a project submitted to NDRC after September 1, 2007, must meet the requirements of the Notice.

Q: What should be included in an application report for a foreign-invested project? 

A: As is required by the Notice, the report shall include the following items:

1. The standard text that should contain:

1)   A brief account of the applicant and the project to be launched.

2)    An analysis of the development plans£¬industry policies, and market access.

3)    An analysis of resources development and multipurpose utilization.

4)    An energy conservation plan.

5)    An analysis of land to be used for construction, the demolition to take place there and the resettlement of people affected.

6)    An environmental and ecological impact statement.

7)    An economic impact statement.

8)    Analysis of possible social effects.

2. The standard text specifies the general requirements for an application report. The Introduction to the Standard Text for the Application Report of a Project also provides a detailed explanation; so it should be consulted in the compilation and approval of an application report.

3. An enterprise can make some adjustments in light of its actual conditions. Given some of the items are not involved in every project, no analysis of these items are necessary after an explanation of the real situation.

4. The standard text is applicable to investment projects within the Chinese border, including foreign-invested projects.

5. The requirements for an application report for foreign-invested projects in the appendix are as follows:

1)    The application report for a foreign-invested project shall not only follow the Tentative Administrative Measures on Approving Foreign-invested Projects and meet the general requirements set in the standard texts, but shall also include the operating period, the target market, the number of employees, the price of public goods and services, forms of investment, the lists of equipment to be imported and the possible prices so that approval organs can check market access, capital-account management and more.

2)    For a merger and acquisition of a domestic company by a foreign one, if it does not expand production and investment scale, does not require more land, resources or energy, does not have an ecological and environmental impact, its application report can be simplified. But the report needs to focus on the following points:

       A. An account of the domestic company (including the current conditions of the company, its financial situation, assets evaluation and confirmation, the purpose of the merger and acquisition and the shares of foreign stock.)

       B. An account of the foreign company (including the financial situation, its investment on the Chinese mainland and company performance over the past three years and the market share of the products or services of counterparts with de facto control.

       C. Merger and acquisition arrangements (including how to handle the aftermath with regard to the employees, and how to settle the debt issues).

       D. The operation mode, scope of business, and ownership structure after merger and acquisition.

       E. Financing plans.

       F. How the money paid for the original company is going to be spent.

       G. Other items required by laws and regulations.

3)    For an application report of a project that takes out loans from international financial institutions or foreign governments, it shall not only comply with the Tentative Administrative Measures on Projects Invested by International Financial Institutions or Foreign Governments and the general requirements set in the standard texts, but also include the category or the foreign country, the scale, the purpose, repayment plans, and the application of the loan so that approval organs can check the external debt management and more.

6. The content of the bidding invitation shall be included in the application report for projects required to have the content of the bidding invitation checked by the NDRC.

关于编写外商投资项目申请报告问题的解答

为进一步完善企业投资项目核准制，指导企业做好项目申请报告的编写工作，规范项目核准机关对企业投资项目的核准行为，中国国家发展和改革委员会（以下简称“国家发改委”）编写了《国家发改委关于发布项目申请报告通用文本的通知》（发改投资[2007]1169号）（以下简称《通知》）。凡是2007年9月1日后报送国家发改委的项目申请报告，原则上均应按照《通知》的要求进行编写。

如何编写外商投资项目申请报告？

答：根据国家发改委编写并发布的《通知》要求，应涉及以下内容：

一、项目申请报告通用文本包括：

1、申报单位及项目概况。  2、发展规划、产业政策和行业准入分析。

3、资源开发及综合利用分析。  4、节能方案分析。

5、建设用地、征地拆迁及移民安置分析。     6、环境和生态影响分析。

7、经济影响分析。     8、社会影响分析。

二、项目申请报告通用文本，是对项目申请报告编写内容及深度的一般要求；关于《项目申请报告通用文本》的说明，是对通用文本的详细解释和阐述。在编写、审核项目申请报告时，应同时借鉴和参考通用文本及说明的有关内容。

三、企业可根据拟建项目的实际情况，对通用文本中所要求的内容进行适当调整，如果拟建项目不涉及其中有关内容，可以在说明情况后，不进行相关分析。

四、此次所发布的项目申请报告通用文本，适用于在中国境内建设的企业投资项目，包括外商投资项目。

五、在附件《关于〈项目申请报告通用文本〉的说明》中关于利用外资项目申请报告的编写要求：

1、  外商投资项目申请报告的编写，按照《外商投资项目核准暂行管理办法》的规定，除遵循项目申请报告通用文本的一般要求外，在项目概况介绍中还应包括经营期限、产品目标市场、计划用工人数、涉及的公共产品或服务价格、出资方式、需要进口的设备及金额等内容，以满足项目核准机关对市场准入、资本项目管理等事项进行核准的需要。

2、  对于外商并购境内企业项目，如不涉及扩大生产及投资规模，不新占用土地、能源和资源消耗，不形成对生态和环境新的影响，其项目申请报告可以适当简化，但应重点论述以下内容：

       境内企业情况(包括企业现状、财务状况、资产评估和确认情况，并购目的和选择外商情况等)；外商情况(包括近3年企业财务状况、在中国大陆投资情况及拥有实际控制权的同行业企业产品或服务的市场占有率、公司业绩等)；并购安排(包括职工安排、原企业债权债务处置)；并购后企业的经营方式、经营范围和股权结构；融资方案；中方通过并购所得收入的使用安排；有关法律规章要求的其他内容。

3、  借用国际金融组织和外国政府贷款的项目申请报告的编写，按照《国际金融组织和外国政府贷款投资项目管理暂行办法》的规定，除遵循项目申请报告通用文本的一般要求外，在项目概况介绍中还应包括国外借款类别或国别、贷款规模、贷款用途、还款方案、申报情况等内容，以满足项目核准机关对外债管理等事项进行核准的需要。

六、按照《国家发展改革委办公厅印发关于我委办理工程建设项目审批(核准)时核准招标内容的意见的通知》（发改办法规[2005]824号）的要求，凡需报国家发展改革委核准招标内容的企业投资项目，应在项目申请报告中包括有关招标内容。