Preparation of EOD Project Implementation Scheme_EOD Project Feasibility Study Report_EOD Project Declaration_EOD Project Whole Process Technical Consulting Services - China Academy of Mechanical Engineering

The Ministry of Ecology and Environment has its official definition of EOD. The ecological environment oriented development model (hereinafter referred to as "EOD model") is based on ecological protection and environmental governance, supported by the operation of characteristic industries, and carried by regional comprehensive development. It adopts the methods of industrial chain extension, joint operation, and combined development to promote the effective integration of ecological environment governance projects with strong public welfare and poor profitability and related industries with good returns, It is an innovative way of project organization and implementation to promote overall planning, implement in an integrated way, and internalize the economic value brought by ecological environment governance.

In short, it is to package environmental governance projects without direct benefits with industrial projects, and use the benefits of industrial projects to feed back the investment in environmental governance projects.

Services that can be provided by CAAC
CMC can provide one-stop, full process EOD mode consulting services from project planning to declaration and warehousing to credit landing, specifically EOD project planning, project planning and design, preparation of project feasibility study report, preparation of project declaration scheme, connection of project financing resources, preparation of project financing scheme, performance evaluation and other comprehensive consulting services.

Project planning and packaging

EOD planning and feasibility study

Credit Landing Service

Declaration warehousing service

EOD mode
Three core points of EOD project

First, "integration": the combination of lean and fat, promote the effective integration of public welfare ecological environment governance and related industry development projects.

The second is "integration": a market entity plans to implement as a whole, promotes ecological environment governance as an integrated project, and implements construction, operation and maintenance integration.

The third is "back feeding": strive to achieve the balance between the overall benefits and costs of the project within the project boundary, and reduce government funding.

Advantages of EOD mode

EOD mode can solve the problem of financing difficulties in ecological environment governance to a certain extent, and improve the hematopoietic capacity of ecological environment governance projects. Realize the transformation of potential market of environmental protection industry into real market, and promote the sustainable development of environmental protection industry. This is inseparable from the following significant characteristics and advantages.

Overall packaging of the project
The EOD mode has the advantage of supporting the overall package development of projects. The package range is very wide, which can include projects that have been built, are under construction or have not been built, public welfare, quasi public welfare or business projects, or first, second and third industry projects.
Multi fund assortment
From the perspective of funding channels, PPP, social capital, central budget subsidies, etc. can be used for EOD project development. More importantly, the insufficient part can be solved by policy banks.
Project financing advantages
Compared with other project loans, EOD mode has significant financing advantages. First, the loan interest rate is low, and you can enjoy policy bank loans and industry discount interest; Second, the loan cycle can be up to 30 years; Third, the amount of financing is large, up to several billion yuan.
Efficient and fast landing
From the perspective of work practice, the EOD project has a short initial declaration time and fast implementation. The average cycle from project packaging to warehousing approval to financing implementation is about 6 months
Key to EOD success
The EOD mode is popular. The main reasons are the following four key factors - policy encouragement, financial support, acceleration of implementation, and pilot expansion.
Policy encouragement: from enterprise exploration to government driven evolution
The earliest discussion on EOD mode in China was in 2014, when CITIC Guoan carried out EOD project practice in Beihai; Since 2018, CCCC has also begun to join, such as the EOD project of Jizhou Canal (Jizhou section). In August 2018, the Ministry of Ecology and Environment's Guiding Opinions on Further Deepening the Reform of "Release, Regulation and Service" in the Field of Ecological Environment and Promoting High quality Economic Development proposed to carry out EOD mode, promote the integrated development of ecological environment governance, eco-tourism, urban development and other industries. The first batch of pilot applications will be launched in 2020, and the second batch of projects will be approved in 2022. Therefore, The EOD mode has entered the stage of government driven development.
Financial support: transformation from development concept to financing tool
As mentioned above, EOD mode banks have a high degree of cooperation. According to the policy, in EOD projects, the insufficient funds can be obtained by applying for loans from China Development Bank. The Notice on Agreeing to Carry out the Second Batch of Pilot Ecological Environment Oriented Development (EOD) Mode mentioned that, "For eligible pilot projects, relevant branches of China Development Bank, in accordance with the principles of precise policy implementation, market-oriented operation and risk control, give full play to the advantages of large amount medium and long-term funds of development finance, take overall consideration of economic and environmental benefits, give preference to resource allocation and increase support".
Acceleration of landing: upgrading from pilot layout to regular declaration
2020-2021 is the application stage of EOD model pilot. In 2020, the project of document collection will be issued in September 2020, and the approval time will be April 27, 2021; In 2021, the time for issuing the document collection project is October 13, and the approval time is the end of April 2022. Later, the EOD mode changed from pilot to conventional project warehousing system, with three major changes:

① When the project is mature, one project will be put into storage, and the non pilot project will be approved in a unified way (different operation modes in different provinces);
② The number of projects in each province (region) has changed from 3 to 5;
③ The loan bank has changed from one to two, namely, China Development Bank and Agricultural Development Bank of China.
Pilot expansion: from national level to local level
At present, EOD mode project library includes national library and local library. The Ministry of Ecological Environment, National Development and Reform Commission and China Development Bank will uniformly approve, review and grant credit to the national treasury, which is planned to invest 500 billion yuan in the pilot period; In addition, local governments are also exploring the establishment of local libraries. Take Anhui Province for example. On July 9, 2021, Anhui Provincial Department of Ecological Environment, Anhui Branch of China Development Bank, Anhui Branch of Industrial and Commercial Bank of China Limited, and Anhui Branch of Agricultural Development Bank of China jointly established Anhui Provincial Treasury; Zhejiang Provincial Department of Ecological Environment, Zhejiang Branch of China Development Bank, the total amount of intended cooperative financing during the 14th Five Year Plan period is not less than 60 billion yuan; Shandong Provincial Department of Ecological Environment, Shandong Provincial Development and Reform Commission and Shandong Branch of China Development Bank jointly issued the Notice on Recommending Pilot Projects of Ecological Environment oriented Development Model in July 2021, officially launching the provincial EOD model pilot.
EOD project packaging
Which projects can be packaged as EOD projects?

According to the spirit of HBKC [2022] No. 6 Guidelines for the Storage of Ecological Environmental Financial Support Projects (Trial), the environmental governance content of the storage project should fall into the following eight fields: air pollution prevention and control, water ecological environment protection, comprehensive management of key sea areas, soil pollution prevention and control, agricultural and rural pollution control, solid waste disposal and comprehensive utilization of resources Ecological protection and restoration, and other environmental governance.

What industries are associated with EOD projects?

According to the list of the first and second batch of pilot projects published by the Ministry of Ecological Environment, the statistics of the projects that have been put into storage at present show that the related industries are rich, mainly including the following types, involving the first, second and third industries and multiple categories, including park development, urban development and other comprehensive development projects. When selecting industries, we need to consider the relevance of industry and environmental governance, and build a "mortise tenon relationship" between the two.

  • Sports and Events
  • Film and television industry
  • Urban development
  • Digital economy
  • High end manufacturing
  • Industrial Park
  • Energy conservation, environmental protection and circular economy
  • Modern logistics
  • resource development
  • tourist industry
  • health industry
  • Emerging industries
  • Business and finance
  • new energy
  • modern agriculture
EOD project declaration
The operation process of EOD mode pilot application mainly includes three steps, including project planning, packaging and application, review and approval or project warehousing, and credit and loan.
① Project planning, packaging and declaration
All localities apply for warehousing in the form of implementation plans, and the municipal and county levels organize declaration, project planning and selection. At this stage, the core is to develop the implementation plan.
② Review and approval or project warehousing
The project will pass the preliminary selection, be reviewed and submitted by the Provincial Department of Ecological Environment, and approved by the state. Through form verification, expert guidance and on-site investigation, the project selection is carried out according to specific standards, and the approval for warehousing is obtained. At this stage, the core is to organize expert review meetings.
③ Credit and loans
At this stage, the bank will focus on the evaluation from the perspective of capital loan recovery, focusing on cash flow and assets, borrower qualification, construction project content, market financial performance, etc. At this stage, the core is to connect with the bank and prepare targeted implementation plans considering the bank's demands.

There are four key points to be noted in the application of EOD model pilot project.

① Requirements for declaration of funds
In principle, the total investment of EOD projects with prefecture level and above governments as the main application subjects should not exceed 5 billion yuan; In principle, the total investment of the projects for which the district and county governments are the subject of declaration shall not exceed 3 billion yuan.
② Requirements of declaration subject
The project implementation unit is only a market entity; Environmental credit evaluation is not the lowest level; The main business scope should include the ecological and environmental protection industry.
③ Requirements for declared items
The supporting projects must complete the approval or filing of the project feasibility study; No more than 5 individual sub items; Strengthen the integrated implementation of ecological environment governance projects with strong public welfare and poor profitability and associated industries with good returns.
④ Financial requirements
Balance of overall project benefits and costs; Compliance requirements shall be met: return subsidies such as land transfer income, taxes and expected new financial revenue shall not be used as project income; Except for the standardized PPP projects, there is no government payment during the operation period.
Core concept: ensure that the approved projects meet the EOD concept requirements;
Project requirements:
(1) The severity and pertinence of regional ecological environment problems; Industrial relevance and innovation;
(2) Format review: integrated implementation subject, project feasibility study approval;
(3) Implementation Entity: only if the credit rating is not the lowest.

Financial requirements:
(1) Overall capital balance;
(2) Compliance of revenue sources;
(3) Innovation, such as natural resource asset use rights or franchise rights, carbon sink carbon emission areas, etc.
Core concept: risk prevention and avoidance of non-performing loans;
Project requirements:
(1) Give priority to supporting projects listed in national or provincial environmental protection plans;
(2) Format review: it is required to prepare a unified feasibility study report as a whole;
(3) Implementation subject: the higher the credit rating, the better; From the perspective of application requirements, both private enterprises and state-owned enterprises are acceptable, but in practice, China Development Bank only accepts state-owned enterprises.

Financial requirements:
(1) Overall capital balance;
(2) Compliance of revenue sources;
(3) The stability, diversification and authenticity of cash flow;
(4) Value maintenance and appreciation of assets.
EOD Project Implementation Plan
Key points of EOD project implementation
1. Sort out the project construction content and clarify the cooperation boundary 2. Rationalize the implementation path and authorize the implementation organization 3. Determine project operation mode and return mechanism 4. Measure project output and fund balance 5. Project procurement planning and risk distribution scheme
Implementation path of EOD mode
1. Clarify the objectives of ecological governance 2. Analyze the feasibility of the integrated implementation site. 3. Establish internal feedback mechanism 4. Promote project implementation according to local conditions .......................
Difficulties in EOD project implementation

1. Choice of social capital
According to the difficulty of project implementation, it is ranked as "industry, investment and construction". In practice, when most projects choose the social capital party to cooperate, they need the construction enterprises and the industrial party to form a consortium, and use the payment schedule of project funds to restrict the investment, investment and operation of the industry. In order to achieve the success of EOD project.

2. Selection of consulting units
Since the implementation of the project involves more than ten professional issues such as industry, investment, government payment (contingent), project progress, project quality, project cost, industrial investment attraction, industrial operation, asset disposal, business indicator accounting, investment and financing calculation, Generally, consulting units with strong consulting strength are required to provide integrated consulting services throughout the project.
EOD project consulting mainly includes three stages of consulting services:

01 Project preparation stage
Project planning
Implementation plan
Warehousing service
Financing services
02 Project bidding and procurement stage
Market test of selecting social capital
Industrial optimization
Contract system preparation
Bidding Agency
03 Project implementation stage
project management
Investment management
Cost, supervision, BIM
Investment and financing, performance evaluation, etc.
EOD Project Dynamics
EOD mode encyclopedia
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