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Recently, the Ministry of Finance and the Ministry of Housing and Urban-Rural Development announced the selection results for the 2025 central fiscal support program for urban renovation, including Beijing, Tianjin, Shijiazhuang, Baotou, Dalian, Harbin, Hefei, Kunming, Xian, Nanning, Chongqing, Yancheng, Changsha, Guangzhou, Haikou, Nanchang, Lanzhou, Xi'an, Wulumuqi, and other 20 cities.
In the coming years,the central government plans to allocate over 20 billion yuan in subsidies to support these 20 cities in implementing urban renovation projects, exploring mechanisms for sustainable urban renewal and addressing key infrastructure gaps. The central government will provide fixed-amount subsidies to cities based on regional distribution, with funds disbursed annually according to project progress ——
1. Eastern region: no more than 800 million yuan per city 1. Central region: no more than 1 billion yuan per city 1. Western region: no more than 1.2 billion yuan per city 1. Direct-controlled municipalities: no more than 1.2 billion yuan per city Currently, the notice issued by the two ministries, 'On Carrying Out the 2025 Central Fiscal Support for Urban Renovation,' states that central financial funds will support urban renewal in two directions:Pilot Project ConstructionandMechanism BuildingTwo main directions.
Key Pilot Projects for Urban Renewal First isrenovation of underground utilities such as water supply, gas, and heating networks, along with the construction of integrated management hubs for economic and compact urban development. Second iscomprehensive construction of full-coverage pilot zones for urban sewage treatment under the 'factory-network integration' model and complete coverage of urban sewage collection networks. Third iswaste management upgrades including household waste sorting, construction of waste treatment facilities, integrated waste bins, hazardous bridge removal, parking facility upgrades, and other municipal infrastructure improvements. Fourth isredevelopment of historic cultural districts, old neighborhoods, community parks, and green open spaces, integrating culture, tourism, dining, and leisure into a unified experience, while strengthening consumption-oriented infrastructure.
Urban Renewal Mechanism Building First is project preparation and mechanism generation.Integrating long-term planning, systematic project planning, preparation, and implementation procedures to establish mechanisms including but not limited to urban inspections, specialized urban renewal plans, lifecycle safety management for buildings, urban renewal project databases, and post-project evaluation systems. Second is financial arrangement and financing mechanisms.Establishing mechanisms conducive to efficient use of fiscal funds and financial resources. In terms of fiscal funding, fully utilizing national budget allocations, central budget investment, general public budgets at local levels, special-purpose bond funds, other government fund budgets, and foreign aid funds to maximize fiscal effectiveness. In financing support, exploring optimized credit support models and encouraging social capital participation. At the same time, establishing reasonable cost-sharing mechanisms, such as performance-based payment systems for full-coverage sewage zones and 'factory-network integration' operations, professionalized secondary water supply services in residential areas, dynamic updating mechanisms for underground network 'one map' facilities, and long-term operational mechanisms. Third is land protection and approval mechanisms.Including low-efficiency or underutilized land, planning regulations, approval processes suitable for renovation-type projects, relevant urban renewal laws, regulations, and technical standards. Central funds can be used for related expenditures during the establishment of the above three mechanisms.
Source: Reporting during construction
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