Administrative Measures for the Review of Preliminary Designs for Chemical Industry Construction Projects by the Ministry of Chemical Industry (September 29, 1995, Document No. HJF (1995) 749) Chapter 1 General Provisions Article 1 These measures are formulated in order to strengthen the review and management of preliminary designs for chemical industry construction projects. They are based on the relevant regulations issued by the **Planning Commission regarding the procedures for capital construction, taking into account the current actual conditions in China, as well as by drawing on past experience. Article 2: Engineering design serves as the link that transforms science and technology into productive forces; it is a precursor and key element in the entire process of project construction, playing a dominant role in it. It has a decisive impact on project quality, the construction timeline, investment efficiency, as well as the economic and social benefits after the project comes online. The preliminary design is a design document prepared based on the approved design brief (feasibility study report). It constitutes an important part of engineering design and serves as the basis for preparing the construction drawings and planning annual activities. Article 3: The preliminary design review of a project is conducted by the competent department, which organizes personnel from relevant units and experts to assess whether it complies with **policies, guidelines, laws and regulations, as well as relevant standards, specifications and requirements. Therefore, in this sense, design review serves as a **\"quality control\" mechanism**. The process of evaluating whether the preliminary design is practical, safe and suitable, technologically advanced, and economically reasonable is also a process of optimizing the design. Article 4: The Department of Construction Coordination is the competent authority responsible for the review of preliminary designs in the chemical industry. The chemical industry departments (bureaus, head offices) of various provinces and cities are the competent regulatory bodies for the local chemical engineering design sector at all levels; they are responsible for organizing, participating in, and coordinating with the relevant ministries, as well as the construction commissions (departments), planning commissions, and economic (trade) commissions of these provinces and cities, to ensure proper review and coordination of chemical project designs. Chapter 2 Conditions and Contents for the Review of Preliminary Designs Article 5 The preliminary design documents submitted for review must meet the relevant regulations, as well as the requirements set forth by the Ministry of Chemical Industry in its “Regulations on the Depth of Content in Preliminary Designs for Chemical Plants” and “Methods for Preparing Estimates for Chemical Plant Designs”. They must also be accompanied by approved feasibility study reports, environmental impact assessment documents, along with copies of all agreements related to the conditions necessary for building the plant. Article 6: The imported equipment must have the technical annex to the contract and the commercial contract signed before its preliminary design can be submitted for approval. Article 7: The preliminary design must be carried out strictly in accordance with the approved documents of the design assignment letter (feasibility study report); the product design, construction scale, and site selection plan shall not be altered. If necessary adjustments are required due to changes in external conditions, approval must be obtained from the department that originally approved the design brief (feasibility study report), and the details shall be specified again in the preliminary design approval document. The preliminary design estimate must be strictly controlled; if the investment exceeds that specified in the design brief (feasibility study report), it is necessary to report to the original approving authority and explain the reasons. Article 8: The external conditions for the preliminary design must be supported by accurate, reliable, and comprehensive design basis documents, including resource reserve reports approved by ** or qualified local authorities, hydrogeological reports, engineering geological reports, seismic design standards, meteorological data, as well as formal agreement documents regarding major raw materials, fuel, power supply, water supply, transportation, and social cooperation. Chapter 3 Principles and Guiding Concepts for Design Review Article 9 Thoroughly implement the five design principles of \"integrated plant layout, open-air arrangement of production facilities, lightweight construction of buildings, socialization of utility systems, and localization of technical equipment.\" Article 10: New technologies should be promoted, and new technological achievements that have been evaluated and have more than one year of practical application experience in industry should be used in engineering design; outdated or even obsolete processing methods and equipment shall not be employed. For newly designed large and medium-sized projects, their technical and economic indicators must reach the advanced level in China. Article 11: Emphasis shall be placed on optimizing design plans. When evaluating design proposals, consideration should be given not only to technical advancement and reliability but also to national conditions, so as to adapt measures to local circumstances, save construction costs, and reduce land use. In the technical renovation of old installations, it is necessary to strike a balance between adopting new technologies and making use of existing facilities, as well as upgrading some older equipment through comprehensive technological improvements. The goal should be to make maximum use of existing facilities while adhering to the principle of using new technologies to upgrade older ones. The utility systems such as water, electricity, and steam supply throughout the plant need to be balanced uniformly, and existing conditions should be fully utilized to carry out improvements and optimizations. Article 12: The principles of comprehensive resource utilization and the “three simultaneities” (designing, constructing, and putting into use facilities for preventing pollution and other environmental hazards simultaneously with the main project) must be strictly implemented. The technical renovation project of the old factory should adhere to the principles of using environmental management measures to improve the older facilities, reducing the overall volume of emissions, and combining point-source control with comprehensive management. Improve process technologies, adopt harmless or less harmful production processes, and take effective measures to prevent pollution of the environment caused by dust, toxins, wastewater, exhaust gases, waste residues, noise, radioactive substances, and other harmful factors. “The discharge of \"three wastes\" must comply with ** and local regulatory standards. Article 13: In accordance with the basic national policy of conserving land use, scheme comparisons should be conducted for the overall layout, and the recommended design scheme must be supported by sufficient evidence. Article 14: To reduce energy consumption, energy should be classified and utilized comprehensively to achieve efficient energy conversion. It is necessary to conserve water, reduce the amount of water used in a direct flow manner, and improve the recycling rate of water. Article 15: For the repair of machinery, electrical equipment, and instruments, the principle of focusing on minor repairs and coordinating medium-scale repairs, while avoiding major repairs, is generally adopted; major repair work should be carried out in collaboration with relevant external entities. Article 16: The factory management structure and staffing levels shall be established in accordance with the principles of streamlining, efficiency, and modern management. Chapter 4 Process Management of Preliminary Design Review Article 17 The review of a design is a process management that begins from the date of approval of the design brief (feasibility study report) and continues until the project is accepted, including key steps such as the approval of the design and adjustments to the budget estimate. Article 18: Before issuing design tenders or commissioning design work, the project owner shall submit the candidate design firms to the department in charge of the preliminary design review, so that their qualifications can be verified. Article 19: For technology introduction projects, the department in charge of the preliminary design shall be involved in overseeing the key technical activities, such as technical exchanges, contract negotiations, and the review of designs and cost estimates. The necessity and feasibility of introducing technologies and equipment must be reviewed in advance by the principal reviewing department and relevant departments. The main text of the contract and the technical attachments introduced should be submitted promptly to the reviewing department, so as to enable dynamic management of the approval process for the preliminary design. Article 20: The number of copies of the preliminary design documents to be submitted by the project owner to the reviewing department is one copy for small projects, and two copies for large and medium-sized projects. The units involved in the review are determined by the leading reviewing department. After the submission of the preliminary design documents, the project owner shall, together with the design unit, promptly report to the reviewing department on the relevant details of the project and the preliminary design, as well as any existing problems. The reviewing department shall promptly notify the construction unit and the design unit to make modifications and additions for preliminary designs that do not meet the review requirements. For designs that meet the review criteria, reviews shall be conducted within half a month for small projects and within one month for large and medium-sized projects, after the receipt of the design documents. Article 21: To ensure the advancement and reliability of design technology, the reviewing department shall invite relevant experts or engineering and technical personnel with practical experience to participate in the review. Article 22: At the preliminary design review meeting, the leading department shall summarize the opinions submitted from various parties and formulate a minutes document after consolidating them. The construction party and the design party shall make modifications and additions in response to the issues raised in the minutes, document these changes, and submit them to the reviewing department. After review by the reviewing department, an official approval will be issued. Chapter 5 Approval of Preliminary Designs Article 23: In order to fully implement the guidelines and policies of the Party and **, as well as the industry technical policies set forth by ** and the Ministry of Chemical Industry, and to strengthen industry management, approval processes for the preliminary designs (including budget adjustments) of large and medium-sized infrastructure projects in the chemical industry sector, as well as technically significant renovation projects, are to be strengthened. For large, medium-sized, and other projects that are funded through joint efforts by the central government and local authorities, the Ministry of Chemical Industry, in conjunction with the relevant competent departments of the provinces, autonomous regions, municipalities directly under the Central Government, and cities with separate planning status where such projects are located, shall organize the approval process ; For projects funded and constructed independently by local authorities, the local construction authorities are responsible for organizing the approval process, with the results to be filed with the Ministry of Chemical Industry. Local small-scale projects are approved at the local level. Infrastructure and technological upgrade projects of enterprises directly under the Ministry of Chemical Industry are submitted to the ministry for approval directly. Article 24: The preliminary design review for domestic Sino-foreign joint venture projects shall be handled in accordance with Article 25 for those where the Chinese party plays a leading role; for joint venture projects led by the foreign party, it shall be carried out in accordance with the law by both parties to the contract, under the review and guidance of the relevant competent authorities. Chinese representatives shall promptly report to the provincial and ministerial competent authorities on the preparations for the review, the progress of the review, and any existing issues. Article 25: The departments (bureaus, head offices) for the chemical industry in each province, autonomous region, municipality directly under the Central Government, and city designated as having separate planning status serve as the competent management agencies for the chemical industry in those provinces and cities where the projects are located; they should actively participate in and organize the approval of project designs as well as the overall management of such projects within their jurisdiction. Article 26: Once the preliminary design has been approved, the construction entity and the design entity shall not make arbitrary changes to the main contents of the design or the estimated cost. In the event of any significant changes, approval from the original design approval authority is required. Chapter 6 Supplementary Provisions Article 27 These regulations shall be interpreted and administered by the Department’s Construction Coordination Division. Article 28 These Provisions shall come into force as of October 1, 1995. Issuing department: Ministry of Chemical Industry (changed) Date of issuance: September 29, 1995 Date of implementation: October 1, 1995 (Central Regulation)