Six authorities including the Ministry of Finance ("MOF") have recently issued the Administrative Measures for the Soil Pollution Prevention and Control Fund (the "Measures"), immediately effective from the date of issuance.
The Measures stipulate that the fund will be operated in a market-oriented fashion, and contributors to the fund shall, under the principle of sharing both benefits and risks, reach explicit agreement on how to dispose of the proceeds and bear the losses. In case the proceeds from investment and the interest are attributable to the government, they should be turned over, in time and in full amount, into the national treasury at the corresponding level as required by the financial treasury management system, unless there is explicit agreement that such benefits will be added to the fund for further investment. Any losses incurred by the fund should be jointly shared by all contributors, and the government shall bear limited liability to the extent of the amount of capital it has contributed. In addition, the Measures require that rules for internal control and external surveillance shall be established and improved for the fund pursuant to the relevant budget and financial management systems of the state, and the investment decision-making and risk constraint mechanisms shall be instituted to prevent risks arising from fund operation.