The project establishment report, also known as the project establishment report or project proposal, is often written in the early stage of the project. Since the project conditions are not mature enough, there is only a planning opinion letter and the specific construction plan of the project is not clear yet. Municipal, municipal and Professional consultation opinions on environmental protection, transportation and other matters have not yet been processed. The project establishment report (project proposal) mainly demonstrates the necessity of project construction. The construction plan and investment estimate are also relatively rough, with an investment error of about ±30%. The project proposal report (project proposal) is a document submitted by the project investor to its competent department and is widely used in the national project approval work. It discusses the necessity and possibility of project establishment from a macro perspective, and turns project investment assumptions into rough investment suggestions. The submission of the project establishment report (project proposal) can be used by the project approval authority to make preliminary decisions. It can reduce the blindness of project selection and lay the foundation for the next feasibility study.
The project establishment report (project proposal, also known as the project establishment application) is a project construction preparation unit or project legal person, based on the development of the national economy, national and local medium and long-term plans, industrial policies, productivity layout, domestic and foreign The internal and external conditions of the market and location, the proposal document for a specific project, is the overall framework concept for the proposed project. For large and medium-sized projects, some of which have complex processes and technologies, involve a wide range of areas, and require a large amount of coordination, a feasibility study report must be prepared as one of the main attachments to the project establishment report (project proposal). The project establishment report (project proposal) is the initial stage of the project development cycle. It is the basis for the country to select projects and the basis for feasibility studies. Projects involving the use of foreign capital can only be completed after the project establishment report (project proposal) is approved. Carry out external work.
1. The difference between the project establishment report (project proposal) and the feasibility study report
The project establishment report (project proposal) is the initial stage of the project development cycle and is the national choice The basis for the project is also the basis for the feasibility study. For projects involving the use of foreign capital, external work can only be carried out after the proposal is approved. Therefore, in order for a project to obtain relevant government support, it must first have a project establishment report (project proposal). After the proposal is screened and passed, a feasibility study of the project will be conducted. The feasibility study report will be finalized only after expert argumentation. Approval. This is actually a common approval process and is the basis for decisions on inclusion of alternative projects and pre-construction work plans. Only after the project establishment report (project proposal) and preliminary feasibility study report are approved can all work centered on the feasibility study be carried out.
When many projects apply for project approval, the conditions are relatively mature, and land, planning, environmental impact assessment, professional consulting opinions, etc. are basically in place. In particular, the source of project funds is entirely self-raised by the project legal person, with no financial funds and no enjoyment. What special policies are there? For such projects, the project establishment report (project proposal) and the feasibility study report are often combined into one.
2. Main contents of the project report (project proposal)
1. Name of the project investor, production and operation profile, legal address, name and position of the legal representative, and name of the competent unit ;
2. Necessity and feasibility of project construction;
3. Market analysis of project products;
4. Project construction content;
5. Production technology and main equipment. Explain the advancement, applicability and reliability of technology and equipment, as well as important technical and economic indicators;
6. Demand and solutions for main raw materials, water, electricity, gas, transportation, etc.;
7. Number, composition and sources of employees;
8. Investment estimation, which needs to explain the fixed funds and working capital that need to be invested;
9. Investment methods and sources of funds;
10. Preliminary estimation of economic benefits.
The procedure for compiling project reports (project proposals) is: Project reports (project proposals) are submitted by government departments, national professional companies, existing enterprises and institutions, or newly formed project legal persons. . Among them, cross-regional and cross-industry construction projects, projects that have a significant impact on the national economy and people's livelihood, and domestic joint venture construction projects should be jointly proposed by relevant departments and regions; Sino-foreign joint venture and cooperative operation projects should be approved after Chinese and foreign investors reach an agreement of intent. Then prepare a project establishment report (project proposal) based on relevant domestic investment policies and industrial policies; when submitting a project establishment report (project proposal) for large and medium-sized and planned projects above designated size, a preliminary feasibility study report should be attached.
3. Requirements for the preparation of project reports (project proposals)
According to current regulations, a construction project refers to an overall design or preliminary design scope, consisting of one or several It is a construction unit that is composed of unit projects, has unified economic accounting, and implements unified administrative management. Therefore, all main projects, supporting projects and ancillary facilities that are economically accounted for in a unified manner within the scope of an overall design or preliminary design should prepare a unified project proposal (project proposal); within the scope of an overall design, they are economically accounted independently. For each engineering project, a project establishment report (project proposal) should be prepared separately; for a phased construction project within an overall design scope, a project establishment report (project proposal) should also be prepared separately.
4. Approval authority for project reports (project proposals)
Currently, project reports (project proposals) must be reviewed and approved at different levels according to the current management system and affiliation. In principle, according to the subordinate relationship, after the competent department puts forward opinions, the subjective department will report it, or report it jointly with the comprehensive department, or report it separately.
(1) Large and medium-sized capital construction projects and renovation projects above designated size shall be approved by the planning committees of provinces, autonomous regions, municipalities directly under the Central Government, municipalities with separate state plans and industry responsible persons after entrusting qualified engineering consulting and design units with preliminary evaluation. After preliminary review by the department, they will be submitted to the State Planning Commission for approval. Extra large projects (transportation, energy, and raw material projects with a total investment of more than 400 million yuan, and other projects with a total investment of more than 200 million yuan) will be reviewed by the State Planning Commission and then submitted to the State Council for approval. For foreign investment projects with a total investment above the quota, the project establishment report (project proposal) shall be initially reviewed by the Provincial Planning Commission and the industry competent department, and then submitted to the State Planning Commission, the Ministry of Foreign Trade and Economic Cooperation and other relevant departments for approval; for major projects exceeding US$100 million , reported to the State Council for approval.
(2) Small capital construction projects and renovation projects below the quota shall be subject to the approval of the relevant departments of the local government or the State Council.
1. Among small projects, domestic investment projects with a total investment of more than 10 million yuan, productive foreign investment projects with a total investment of more than 5 million US dollars, and non-productive foreign investment projects with a total investment of more than 3 million US dollars, project establishment report ( Project proposals) shall be reviewed and approved by relevant local or State Council departments.
2. Domestic-funded projects with a total investment of less than 10 million yuan, and non-productive foreign-invested projects with a total investment of less than 5 million US dollars, based on the principle of simplifying procedures, if the project construction content is relatively simple, you can also directly Prepare feasibility study report.
IV. The main work after the approval of the project report (project proposal):
Determine the institutions, personnel, legal representatives, and legal representatives of the project construction.
Select the construction site, apply for planning and design conditions, and make planning and design plans.
Implement the fund-raising plan.
Implement supporting plans for municipal public facilities such as water supply, power supply, gas supply, heating supply, rainwater and sewage discharge, and telecommunications.
Implement the supply of main raw materials and fuel.
Implement environmental protection, labor protection, health and epidemic prevention, energy conservation, and fire protection measures.
Foreign-invested enterprises apply for corporate name pre-registration.
Conduct detailed market research and analysis.
Prepare feasibility study report.
V. Format Example of Project Establishment Report
Project Establishment Report (Project Proposal) for Sino-foreign Joint Ventures
1. Project Name: Joint Venture Production (Operation) ×××× product project
Project sponsor: (company name) ××××××
Unit leader: (factory director or manager)
2. Reasons for setting up a joint venture:
Explain the establishment of a Sino-foreign joint venture from the gaps in domestic and foreign technology and product quality, from the aspects of utilizing foreign capital, exporting products, cultivating talents, increasing profits, etc. necessity and importance.
3. The situation of the Chinese joint venturer:
Introduce the basic situation of the Chinese joint venturer and the favorable conditions for establishing a Sino-foreign joint venture, including the nature of the enterprise (state-owned or collective) and personnel situation , technical strength, leadership team, fixed assets, equipment, sites, original product output, output value, profits, product exports, etc.
4. Information about foreign partners:
Foreign partners’ company name, country, capital, business scope, scale, product reputation, sales, etc.
5. Main contents of joint venture operations:
(1) Production (operation) scope and scale.
(2) Joint venture year.
(3) Address, floor area, and construction area (new construction, expansion, renovation) of the joint venture.
(4) The total number and composition of employees of the joint venture (workers, technical personnel, management personnel).
(5) Total investment, registered capital and proportion of capital contribution from all parties.
(6) Investment methods and sources of funds: China’s estimation of land use rights, buildings, houses, machinery and equipment, etc., cash investment (foreign exchange, RMB) and sources (self-raised, loans, leases) ); the foreign joint venturer uses cash, machinery and equipment, industrial property rights (patent rights and trademark rights) or proprietary technology as investment, and its price, valuation method and estimated amount.
(7) Product technical performance and sales direction
The technical level that the joint venture's products are expected to reach, with competitiveness at home and abroad, and an estimate of the proportion of domestic and foreign sales of the products.
(8) Production (operation) conditions
Recent and future requirements and existing conditions for the main raw materials, fuel, power, transportation and collaborative supporting equipment required by the joint venture .
(9) Preliminary technical and economic benefit analysis.
Product performance and price (domestic and domestic sales), cost, and revenue estimates.
Production means and production efficiency improvement.
Energy and raw material saving effects.
Estimation of economic returns of both Chinese and foreign parties: estimation of profits of each party during the joint venture period, project investment profit rate, investment recovery period, etc.
Analysis of social and economic benefits: taxation, employment, improvement in technical level, etc. during the joint venture period.
6. Project implementation plan:
When to carry out technical exchanges, overseas inspections, preparation of feasibility study reports, organization of negotiations, contract signing, construction, commissioning and production, etc.
If it is a one-time planning and phased implementation project, the time schedule of the phased project should be listed.
Attachment:
(1) Invitation of foreign partners to China for technical exchange plan.
(2) Overseas inspection plan.
(3) Feasibility study work plan, including arrangements for personnel responsible for the feasibility study; if it is necessary to hire foreign experts for guidance or entrust consultation, a plan must be attached.
Note: When submitting the project establishment report (project proposal) for approval, the attachments must be complete.