What is the use of the feasibility study report?
According to the State Council's Decision on the Reform of Investment System (Guo Fa (2004) No.20), there are two ways to approve and put on record projects that do not use government investment in China, in which the approved projects submit project application reports to government departments, and the filed projects generally submit project feasibility study reports.
At the same time, according to the Decision of the State Council Municipality on Setting Administrative License for Administrative Examination and Approval Items that Need to Be Retained, some projects still retain the power of administrative examination and approval, and investors still need to submit the feasibility study report of the project to the examination and approval department.
2. Lending to financial institutions
China's commercial banks, China Development Bank, Export-Import Bank and other domestic and foreign financial institutions will conduct a comprehensive and detailed analysis and evaluation of loan projects when accepting project construction loans. Banks and other financial institutions will only agree to the loan if they confirm that the project has the ability to repay the loan and does not bear too much risk. The project investor needs to issue a detailed feasibility study report, and financial institutions such as banks will agree to the loan only after confirming that the project has the ability to repay the loan and does not bear too much risk.
3. Corporate financing and foreign investment cooperation
This kind of research report usually requires accurate market analysis and reasonable investment scheme, and provides practical operation schemes such as competition analysis, marketing scheme, management scheme and technology research and development.
4. Apply for tax exemption for imported equipment.
The feasibility study report is mainly used for the duty-free use of imported equipment, and the project feasibility study report is required for the projects confirmed by Sino-foreign joint ventures and domestic-funded enterprises.
5. Examination and approval of overseas investment projects
When enterprises implement the strategy of going global and invest in foreign mineral resources and other industries, they need to prepare a feasibility study report and submit it to the National Development and Reform Commission or the provincial development and reform commission. When they need to apply for credit support for overseas key investment projects in The Export-Import Bank of China, they also need a feasibility study report.
6, environmental assessment, industrial land approval
At present, China's requirements for energy conservation and environmental protection of the project are gradually improving, and the implementation of the project requires environmental assessment. The feasibility study report of the project can be used as the basis for the environmental protection department to review the environmental impact of the project.