THE PROVISIONAL MEASURES FOR OVERSEAS PROJECT FINANCING MANAGEMENT

In accordance with the requirements of the State Council for furtherstrengthening the macro-management of the contracting of internationalcommercial loan, this set of measures is formulated hereby with the intention of regulating the financing acts; reinforcing the foreign debtsmangement of our country and utilizing the foreign capital more efficiently. Article 1 The project financing herewith refers to the raising offoreign exchange fund abroad in the name of construction projects withinthe country, and the foreign debts shall be rapaid by the expected incomeand the liability of the assets of the project. It shall bear the followingcharacteristics: (1)The creditor has no right of recourse to the assets and incomeoutside the construction project. (2)Domestic institutions shall not mortgage, hypothecate or clearoff the debts with assets, rights and interests as well as income outside theconstruction project. (3)Domestic institutions shall not provide any kinds of financingguarantee. Article 2 The project financing shall apply to infrastructure constructions such as power generation installations, highways, bridge,