The "Notice on Doing a Good Job in the Issuance of Special Bonds and Project Supporting Financing of Local Government Special Bonds" (Division [2019] No. 33) (hereinafter referred to as the "Special Bond Notice") mentioned that it is necessary to give full play to the leading rol

"Notice on Doing a Good Job in the Issuance of Local Government Special Bonds and Project Supporting Financing" (Division [2019] No. 33) (hereinafter referred to as the "Special Bond Notice") mentioned that it is necessary to give full play to the leading role of special bonds and the advantages of market-oriented financing of financial institutions, and promote the construction of major projects supported by special bonds in accordance with the law.

1. What projects can be market-based financing

. For major projects with certain returns and all income belong to government fund income, local governments will issue special bonds for financing; for major projects with both government fund income and other operating special income, and after repaying the principal and interest of special bonds, the relevant corporate project units can market-based financing from financial institutions based on the remaining special income.

2. Repayment source for market-oriented financing projects

special bonds can be "government fund income + special income". This part of the funds are paid into the treasury and included in the government fund budget management to ensure the repayment of principal and interest of special bonds; the repayment source for market-oriented financing can only be special income. The project unit opens a regulatory account in the bank and collects this part of the income into the regulatory account for market-oriented financing maturity repayment.

3. Whether assets need to be divided

The income corresponding to special bonds and market-oriented financing should be divided, but whether the assets corresponding to special bonds and market-oriented financing need to be divided depends on the specific situation of the project. Because special income can be returned to special bonds or market-oriented financing, special income can be divided, but it is difficult to divide the assets that generate special income; the provider of market-oriented financing can propose asset pledge requirements. If the pledge for market-oriented financing affects the realization of the source of repayment of special bonds, the consent of the government should be obtained.