The Urban Development Investment Corporations (UDICs) in Chongqing, China

World Bank

World Bank

关键词: ACCOUNTABILITY;    ACCOUNTING;    ACCOUNTING STANDARDS;    ADB;    AMORTIZATION;   

RP-ID  :  56175

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Urban Development InvestmentCorporations (UDICs) have over the years become the centralpillar in the local government drive to build infrastructurein China, where local governments are not allowed to engagein direct market borrowing. UDICs were established duringthe early 1990s when local governments were under greatpressure to both build municipal infrastructure and toreform the role of the government in infrastructuredevelopment. The UDIC model provided the local governmentswith a corporate government structure to borrow from themarket and quickly develop infrastructure. They are treatedas municipal corporations under the Company Law of thePeoples' Republic of China (PRC). The law does notclarify the relationship between UDICs and the localgovernment, including the limits of the financial liabilityof the local governments vis-a-vis UDICs. The Government ofChina (GOC) agencies expect that the World Bank (WB)Technical Assistance Report (TAR), based on the detailedanalysis of the financial operations of a selected UDIC inChongqing, will offer critical technical assistance to theChongqing Municipal Government (CMG), which can also beshared with other Chinese cities. The GOC agencies realizethat this TAR is the first step in the right direction, inthat it will specifically address the needs of areform-minded municipal government and clarify one UDICmodel in detail. It is anticipated that similar efforts canbe undertaken in the coming years with other reform-mindedand high-priority cities that are employing different modelsof UDIC to finance municipal infrastructure.