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2024
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The Ministry of Finance and the Ministry of Housing and Urban–Rural Development have issued a notice to launch the first round of selection for urban renewal demonstration projects, designating fifteen pilot cities.
The Ministry of Finance and the Ministry of Housing and Urban–Rural Development recently jointly issued the “Notice on Launching Demonstration Projects for Urban Renewal,” which stipulates that, starting in 2024, the central government will adopt innovative approaches to support selected cities in carrying out urban renewal pilot programs. Priority will be given to upgrading and renovating urban infrastructure, further enhancing urban functions, elevating urban quality, and improving living environments, with the aim of fostering “good communities and good districts.” This initiative seeks to shift urban infrastructure development from a focus on mere availability to an emphasis on quality, address pressing concerns and challenges faced by the public, and contribute to high-quality urban development.
According to the notice, the Ministry of Finance, in collaboration with the Ministry of Housing and Urban–Rural Development, has selected, through a competitive process, a number of cities that meet favorable basic conditions, demonstrate strong initiative, and feature distinctive characteristics, to carry out pilot demonstration projects and advance urban renewal initiatives in a solid and orderly manner. The central government will provide fixed‑amount subsidies to these demonstration cities. These cities are required to formulate urban renewal action plans, coordinate the use of both central and local funds, and refine relevant laws, regulations, planning standards, investment and financing mechanisms, as well as supporting policies. In conjunction with key tasks such as upgrading and renovating urban underground utility networks, implementing integrated plant‑network construction and renovation for sewage systems, addressing infrastructure shortcomings, and revitalizing aging neighborhoods, they will continue to push forward urban renewal efforts.
The urban renewal demonstration program is open to cities at or above the prefecture level. In 2024, each province, autonomous region, and municipality may nominate one city for consideration, with an initial selection of 15 demonstration cities, prioritizing megacities, super‑large cities, and major cities along the Yangtze Economic Belt. Central government subsidies will focus on supporting the upgrading and renovation of urban underground utility networks, as well as the integrated construction and upgrading of wastewater treatment plants and their associated pipe networks.
Demonstration cities must simultaneously meet the following basic requirements: establish an organizational leadership and coordination mechanism to advance urban renewal, and formulate a work plan for building the demonstration city; possess sufficient fiscal capacity to cover urban renewal expenditures, maintain low local government debt risks, and refrain from incurring new implicit government liabilities as a result of urban renewal initiatives; and, in recent years, have not experienced any major production safety accidents or significant adverse public‑opinion incidents in the housing and urban–rural development sector.
The selection of demonstration cities will be conducted through a competitive review process, with priority given to cities that have solid foundational work, meet the requisite conditions, and demonstrate high levels of enthusiasm.
The notice also specifies the subsidy standards and scope of support. First, the central government’s financial subsidy standards: the central government provides fixed‑amount subsidies to demonstration cities on a regional basis, with funds disbursed annually in accordance with progress. Second, the priorities for funding: demonstration cities are to mobilize resources through multiple channels to systematically advance urban renewal initiatives, coordinating efforts such as the construction and upgrading of urban underground utility networks and integrated utility tunnels, the “plant‑network integration” of sewage collection systems, addressing infrastructure gaps, and renovating and redeveloping aging urban areas, thereby optimizing urban spatial planning and enhancing urban functions. Specifically, these efforts encompass the renovation and upgrading of urban underground utility networks, the establishment of model zones achieving full coverage of urban sewage collection systems, addressing infrastructure shortfalls, and revitalizing outdated urban districts.
The notice states that, through three years of pilot projects, efforts will be made to steadily enhance the intensive laying and safety of urban underground utility networks, significantly improve the efficiency of domestic wastewater collection and treatment, effectively address shortcomings in municipal infrastructure, and continuously promote the development of livable environments in aging urban areas—thereby meeting the public’s demand for a high-quality life and establishing replicable, scalable models and best practices.
Excerpted from China Construction News, May 8, 2024, by Zong Bian.
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