It takes at least two or three years for urban villages to experience through “demolition” to “reconstruction”. The Capital chain tends to be broken during such a long period of time, which may finally turn the regeneration into an unfinished project. A few days ago, the Municipal Office of ‘Three Old’ Regeneration (namely old towns, old workshops and old villages) posted on its official website the Opinions on Strengthening Supervision of Special Fund for Reconstruction and Resettlement during the Comprehensive Regeneration of Old Villages.
According to the Public Opinions received, to tackle the above said problem, no less than 50% of the special fund shall be deposited in an account under special supervision as a cash amount. In case that the party responsible voluntarily suspend or terminate the construction for over one month or fall into arrears of compensation for over two months, the government office responsible at district level is to make a discretionary decision to either use the special fund deposited in the above said account or to use the fund from an unconditional bank guarantee. All economic losses arising there from shall be borne by the party responsible.
The Special fund set up for reconstruction and resettlement during the comprehensive regeneration of old villages refers to the fund for compensation of reconstructing properties (residential houses and other properties) which shall be included in the costs of the project of comprehensive regeneration of old villages, including reconstruction cost, subsidies for temporary settlement, compensation for production and business shutdowns and subsidies for relocation, etc.
It is also stipulated in the Opinions that the Municipal Office of “Three Old” Regeneration will inspect the use and supervision of the special fund at district level. District government or organizations appointed by the district government will be responsible for the supervision adhering to the principals of hierarchical responsibility, earmarking the payment and collective payment. Regeneration planning and project cost approved by the local district government shall be submitted to the Municipal Office of the ‘Three Old’ Regeneration at the same time for examination and approval; and the amount of the special fund shall then be decided in the approved regeneration plan.