Policy-Based Finance Supports Sponge City Development
Release Time:
2016-01-08
Source:
Policy-Based Finance Supports Sponge City Development
According to reports, the Ministry of Housing and Urban–Rural Development recently issued a joint notice with the Agricultural Development Bank of China to strengthen support from policy-based financial institutions for sponge city development. The notice requires housing and urban–rural development authorities at all local levels to prioritize collaboration with the Agricultural Development Bank of China, fully leverage the supportive role of policy-based finance, and effectively enhance the capacity of credit financing to underpin and safeguard sponge city construction.
According to the notice, housing and urban–rural development authorities at all local levels are required to promptly establish and improve a project reserve system for sponge city initiatives, appropriately identify eligible projects, and designate responsible borrowing entities. The Technical Guidance Expert Committee on Sponge City Construction under the Ministry of Housing and Urban–Rural Development will evaluate the projects submitted by local authorities and give priority recommendation to those that receive favorable evaluation scores and adopt an integrated “technology-plus-capital” operational model.
The notice requires that all branches of the Agricultural Development Bank of China prioritize sponge city development as a key area for credit support, proactively coordinate and allocate credit quotas, and give priority to providing loan financing for sponge city construction projects. Loan terms may extend up to 30 years, and loan interest rates may be appropriately discounted. For loan projects that meet the eligibility criteria for using collateralized supplementary loan funds, the preferential interest rates set by the People’s Bank of China may be applied. Provided that risks are under control and commercial sustainability is ensured, expected revenues under project service procurement agreements may be used as pledge collateral for loans from the Agricultural Development Bank of China.
In conjunction with the announcement of the 2015 pilot projects for sponge city construction, efforts to build sponge cities have been significantly stepped up across various regions. Thanks to its clear advantages, it has gained widespread recognition and is being actively promoted—sponge city— Permeable pavement Sponge cities exhibit strong resilience in adapting to environmental changes and responding to natural disasters: they absorb, store, infiltrate, and purify rainwater during rainfall, and release and utilize the stored water when needed. The development of sponge cities should adhere to principles such as ecological priority, integrating natural processes with engineered solutions. On the basis of ensuring urban drainage and flood-control safety, these cities should maximize the capture, infiltration, and purification of rainwater within urban areas, thereby promoting the efficient use of rainwater resources and safeguarding the ecological environment.
