According to the Interim Measures for the Administration of Special Bonds Issued by Local Governments (Caiku [2015] No.83), special bonds are government bonds issued by the governments of provinces, autonomous regions and municipalities directly under the Central Government for public welfare projects with certain benefits, and it is agreed that the government funds or special benefits corresponding to public welfare projects will repay the principal and interest within a certain period. Special bonds can be divided into ordinary special bonds and special bonds for project income.
Matters needing attention in special debts
It should be noted that all assets formed during and after the construction of special bond projects belong to state-owned assets formed by government investment, and their ownership belongs to local governments.
During the duration of bonds, the asset management income of special bond projects belongs to the local government, and the project income is used to repay the principal and interest of bonds. The project operation unit is specifically responsible for the operation, management and maintenance of the project assets, and set up a special person to manage them. The project assets shall not be confused with the self-owned assets of the construction and operation units.