Suggestions on the Planning Approach for Major Projects during the 15th Five-Year Plan Period in Tonghai County

Recently, Song Yingzhong, a think tank expert at Zhongtou Zeshi (Beijing) International Consulting Co., Ltd., was invited to Tonghai County, Yuxi City, Yunnan Province, to deliver a special training session on “The Latest Macroeconomic Policies and Project Planning.” The session focused on three key areas: the pain points and challenges in local economic development, the application of investment and financing tools, and the precise planning of projects. This initiative aims to help Tonghai County identify the right direction for high-quality economic and social development and lay a solid theoretical foundation for accurately aligning with national and provincial economic policies. Following the training, the Tonghai County People’s Government and Zhongtou Zeshi reached a preliminary consensus on deep cooperation. Zhongtou Zeshi will fully leverage the professional expertise and talent advantages of the “Zeshi Think Tank,” based on the actual conditions of local economic and social development, to conduct a thorough “diagnosis and assessment” of major projects planned for Tonghai County during the 15th Five-Year Plan period, thereby comprehensively enhancing the success rate of project applications and the effectiveness of project implementation across the county.

01

Accurately Seize Opportunities of the Times and Define County-Level Positioning 

The 15th Five-Year Plan period represents a critical phase for China in laying a solid foundation and mounting comprehensive efforts to basically achieve socialist modernization, as well as a pivotal five-year span for accelerating the development of Yuxi City in Yunnan Province into a pilot zone for all-round green transformation and development and for creating an immersive experience zone showcasing Yunnan’s national historical and cultural cities. Tonghai County, under the jurisdiction of Yuxi City in Yunnan Province, is situated in the heart of central Yunnan and serves as an important node within the Central Yunnan Economic Circle. During the 15th Five-Year Plan period, the county Party committee and county government have defined three major development orientations: building a pilot zone for all-round green transformation and development; creating an immersive experience zone highlighting Yunnan’s national historical and cultural cities; and establishing a demonstration zone for ethnic unity and progress. Key tasks encompass constructing a modern industrial system, strengthening science and technology innovation-driven development, deepening the protection and governance of Qilu Lake, revitalizing the vitality of this historic and cultural city, and promoting all-round rural revitalization. These orientations and tasks provide clear directional guidance for planning projects in Tonghai County during the 15th Five-Year Plan period. 

In its current development, Tonghai County faces numerous shortcomings and weaknesses, including insufficient project support to underpin growth, daunting challenges in ecological conservation and restoration, significant gaps in scientific and technological innovation, and substantial pressure to transform and upgrade traditional industries. As the county embarks on the 15th Five-Year Plan period, it is imperative to take project planning as a key leverage point, break free from conventional thinking and approaches, and enhance the feasibility and operational viability of projects. Focusing on priority areas such as infrastructure development, industrial upgrading, ecological and environmental protection, and improvements in people’s livelihoods and social welfare, Tonghai should undertake high-standard, high-requirement planning and reserve a portfolio of major, foundational projects that deliver long-term benefits. Efforts must be concentrated on addressing existing weaknesses and bottlenecks, further strengthening efforts to secure external support, and ensuring robust execution across all stages—project planning and reserve, application and approval, and implementation and advancement—so as to attract more large-scale, high-quality projects to be located and realized in Tonghai, thereby making a positive contribution to stabilizing economic growth. 

02

Precise planning to build a robust project pipeline 

A “Roadmap” for Securing Funding 

Effective project planning of high quality is a vital pathway for Tonghai County to break through development bottlenecks, capitalize on policy dividends from higher authorities, and consolidate its developmental advantages. Such planning must adopt both a macro-level vision and a detailed, micro-level approach. In light of the distinct policy frameworks governing central budgetary investment, ultra-long-term special treasury bonds, and special-purpose bonds, it is recommended that Tonghai County precisely align with the national, provincial, and municipal strategic layouts and development priorities for the 15th Five-Year Plan period, closely follow the guidance of investment policies, and, based on the county’s actual development conditions, ensure that national investment priorities are harmonized with local resource endowments and aligned with specific development needs. By benchmarking against the nation’s 109 major projects, the county should shift from a “broad, indiscriminate outreach” to a “targeted, precision-driven approach,” establishing an integrated planning mechanism that combines policy orientation, county-level needs assessment, and maturity evaluation. This will ensure that project planning is well-focused, highly targeted, and precisely tailored to specific objectives. 

Central Budgetary Investment: Focusing on Addressing Weaknesses in the Public Sector 

In 2026, the total scale of investment within the central budget will reach RMB 755 billion, of which RMB 613 billion will be allocated as transfer payments to local governments. These funds will be primarily directed toward food security, energy security, the stability and security of industrial and supply chains, major national strategies, regional coordination and ecological civilization development, major infrastructure projects, social programs, and urban renewal. The initial tranche of central-budget investment has been set at over RMB 75 billion, with a focus on supporting projects in areas such as urban renewal, water conservancy, ecological protection and restoration, pollution control, and energy conservation and carbon reduction. 

Recommendations for Tonghai County’s priority areas of alignment are as follows: First, focus on the protection and management of Qilu Lake by planning projects for aquatic ecosystem restoration and integrated watershed management, with the aim of securing funding for ecological conservation and restoration as well as pollution control. Second, center on urban renewal by developing plans for upgrading supporting infrastructure in older residential communities, dilapidated urban housing, and historic neighborhoods, thereby enhancing both infrastructure and public services. Third, concentrate on food security and the specialized vegetable industry by initiating projects to improve agricultural foundational capabilities, such as constructing high-standard farmland and developing cold-chain logistics systems. Fourth, prioritize social development by addressing critical gaps in key areas that affect people’s livelihoods, including education, healthcare, and services for the elderly and young children. 

Ultra-Long-Term Special Government Bonds: Anchored to the “Two Major” and “Two New” Initiatives 

In 2026, the state will issue ultra-long-term special government bonds totaling RMB 1.3 trillion to support the “Two Priorities” (the implementation of major national strategies and the enhancement of security capabilities in key areas) and the “Two New Initiatives” (large-scale equipment upgrades and trade-in programs for consumer goods). Under the “Two Priorities,” the initial project list prioritizes critical areas such as hub nodes for China-Europe Railway Express assembly centers, self-reliance and strength in science and technology, emerging industries, the urbanization of rural migrants, the construction and renovation of underground utility networks and tunnels in cities, ecological restoration in the Yangtze River basin, the New Western Land-Sea Corridor, high-standard farmland, and the quality improvement and upgrading of higher education. In the “Two New Initiatives” domain, the first tranche of RMB 93.6 billion in equipment-upgrade funding has already been allocated to support projects in sectors including industry, energy and power, education, and healthcare. 

Recommendations for Tonghai County’s priority areas of alignment are as follows: First, closely focus on the construction and renovation of urban underground utility networks, and develop projects to upgrade municipal infrastructure such as gas supply, water supply and drainage, and sewage treatment. Second, center on the renewal of industrial equipment to promote the intelligent and green transformation of traditional industries, and seek funding support under the “Two New” initiative. Third, concentrate on the development of high-standard farmland and agricultural infrastructure, and strive to secure “Two Heavy” funding in the area of food security. Fourth, leverage the county’s status as a National Historical and Cultural City to plan projects for upgrading cultural and tourism infrastructure, and seek “Two Heavy” funding in the social and livelihood sectors. Fifth, seize the opportunity presented by the development of Tonghai as a hub for the China–Europe Railway Express assembly center, capitalize on its advantageous location in central Yunnan adjacent to Kunming, and plan infrastructure projects such as a regional logistics hub, multimodal transport nodes, and a cold-chain distribution center, with the aim of having these projects incorporated into the national logistics hub network layout. 

Local Government Special Bonds: Making Effective Use of the “Negative List” 

Management Dividend 

In 2026, the General Office of the State Council issued new regulations on the management of special-purpose bonds, introducing a “negative list” approach for project investment areas. Under this framework, infrastructure projects in emerging industries such as information technology, new materials, biomanufacturing, the digital economy, the low-altitude economy, and quantum technology; safety and smart upgrading of traditional infrastructure such as expressways and airports; and infrastructure for health care, elderly care and childcare services, as well as provincial-level industrial park infrastructure, have been included in the “positive list” for using special-purpose bond proceeds as project equity capital. Projects that generate no revenue at all, government buildings and public facilities, prestige-driven projects, and commercial real estate developments are placed on the “negative list.” All projects not listed on the negative list are eligible to apply for funding from special-purpose bonds. 

Recommendations for Tonghai County’s areas of focus: First, develop projects for standardized industrial park buildings and supporting infrastructure centered on industrial park infrastructure; second, seek special bond funding for infrastructure in emerging industries such as the low-altitude economy and new materials; third, undertake intelligent upgrades to transportation infrastructure to enhance the county’s transportation network; and fourth, plan public-service projects in vital areas such as health care, elderly care, and childcare that are financially sustainable, ensuring that project revenues can cover principal and interest payments. 

03

Anchor key areas and engage in systematic planning. 

Project System 

In light of Tonghai County’s economic and social development and its industrial foundation, and in accordance with the guiding principles of “prioritizing key areas, adopting a categorized planning approach, and advancing projects in a phased manner,” it is recommended that a systematic project portfolio for the 15th Five-Year Plan be developed around the following six priority areas. 

(1) Ecological Governance and Green Development 

The protection and management of Qilu Lake is the top priority in Tonghai County’s ecological development. The Yuxi City 15th Five-Year Plan underscores the need to continuously wage a tough battle to protect and manage the “Three Lakes,” while coordinating efforts to reduce pollution and carbon emissions. Tonghai County should prioritize the following initiatives: first, water-ecological restoration and comprehensive management projects in the Qilu Lake watershed, including the remediation of river channels entering the lake, wetland restoration, and ecological rehabilitation of the lakeshore zone; second, upgrading and retrofitting urban and rural sewage and waste treatment facilities to enhance their performance and improve the system for intercepting and treating pollutants; third, measures to control agricultural non-point source pollution and promote green, circular farming and livestock-raising practices, thereby advancing the green transformation of plateau-specific agriculture; and fourth, energy-saving and carbon-reduction projects as well as resource-recycling initiatives, to drive the green and low-carbon development of industries. Such projects can seek dual support from central budgetary investments—specifically for ecological conservation and restoration and pollution control—and from ultra-long-term special treasury bonds earmarked for ecological restoration in the Yangtze River Basin. 

(II) Sector of Industrial Quality Improvement and Transformation & Upgrading 

The “15th Five-Year” Plan for Tonghai County explicitly calls for the proactive development of a modern industrial system and the promotion of green, low-carbon transformation and development. Leveraging the county’s resource endowments, the plan focuses on cultivating new drivers of productivity in key areas such as new materials and energy storage. Key initiatives include: first, upgrading park infrastructure—such as constructing standard factory buildings, developing smart park platforms, and improving supporting facilities for essential production factors—with the aim of securing capital funding through special-purpose bonds (with provincial-level industrial park infrastructure included in the “positive list”); second, implementing intelligent and green technology upgrades in traditional industries, particularly in sectors like color printing and packaging and equipment manufacturing, to facilitate equipment renewal and attract funding from ultra-long-term special treasury bonds earmarked for “two new” initiatives; third, fostering the new materials industry by building on the existing industrial base to develop emerging sectors such as energy-storage materials and green building materials, with the goal of obtaining capital support through special-purpose bonds (as new materials are also included in the “positive list”); and fourth, advancing infrastructure projects for the low-altitude economy, seizing the opportunity presented by Yunnan’s efforts to cultivate this sector by planning infrastructure for new business models such as drone-based logistics and delivery and low-altitude tourism. 

(3) Urban Renewal and Infrastructure 

The Yuxi City 15th Five-Year Plan calls for leveraging urban renewal as a key driver, adhering to the principles of “small-scale, incremental, micro-renovation, and refined enhancement,” and advancing the renovation of old residential communities and urban villages. Tonghai County should prioritize the following initiatives: first, urban underground utility network renewal and upgrading projects, encompassing the construction and renovation of gas, water supply and drainage, and heating networks, as well as the deployment of intelligent monitoring systems; such projects can seek funding from the ultra-long-term special treasury bonds under the “two priorities” framework (focused on new urbanization) and from central budgetary investments earmarked for urban renewal; second, renovation projects for old residential communities and urban villages, aimed at improving infrastructure and public service facilities; third, projects to enhance the comprehensive carrying capacity of the county seat, including municipal roads, public transportation, and smart city infrastructure; and fourth, resilience-building and disaster prevention and mitigation projects designed to strengthen the county seat’s ability to respond to natural disasters. 

(4) Cultural Tourism and the Development of Historic and Cultural Cities 

Tonghai County proudly bears the national designation of “Historic and Cultural City,” and the 14th Five-Year Plan explicitly calls for fully revitalizing this cultural heritage site and continuously unleashing robust momentum in the cultural and tourism sectors. Key initiatives include: first, projects for the protection, restoration, and adaptive reuse of historic and cultural districts, encompassing the repair of historic buildings, the enhancement of district aesthetics, and the construction of cultural exhibition venues; second, infrastructure projects to promote the integrated development of culture and tourism, such as visitor service centers, smart tour-guide systems, and tourist restrooms; third, digital preservation and transmission projects for cultural heritage, leveraging artificial intelligence and digital technologies to enhance cultural dissemination; and fourth, integrated cultural, tourism, and health-and-wellness complexes that capitalize on the region’s high-altitude climate to develop new forms of wellness tourism. These projects must emphasize balanced financial returns and seek support through special-purpose bond financing. 

(5) Agricultural Foundations and Rural Revitalization 

Tonghai County has a solid foundation in plateau-specific agriculture, including vegetables and flowers, with agricultural (crop) output reaching RMB 4.04 billion and flower output increasing by 21.2%. Key initiatives under planning include: first, a high-standard farmland development project to enhance overall agricultural productivity and secure funding from the ultra-long-term special treasury bonds earmarked for “two priorities” (with a focus on food security); second, a provincial-level key cold-chain logistics base construction project to improve post-harvest storage, preservation, and cold-chain infrastructure for agricultural products and strengthen the county’s role as a logistics hub; third, a rural living environment improvement and upgrading project to advance the construction of beautiful countryside and the treatment of rural sewage and waste; and fourth, an agricultural technology application and smart agriculture project to promote demonstration applications of “AI Plus” in plateau-specific agriculture. At the same time, work is being coordinated to plan work-for-relief projects that will help increase rural residents’ incomes. 

(6) Livelihood Security and Public Services 

The Yuxi City 15th Five-Year Plan focuses on vital areas of people’s livelihood, including employment, education and sports, healthcare, elderly care and childcare, and social service facilities, with the aim of comprehensively revitalizing rural areas. Tonghai County should prioritize the following initiatives: first, upgrading education and sports infrastructure, including school building safety projects for primary and secondary schools and industry–education integration training bases for vocational education; these projects can seek funding under the “two priorities” program of ultra-long-term special treasury bonds—namely, higher education quality enhancement and social welfare—and include initiatives to strengthen ordinary high schools, address shortcomings in public fitness programs, and develop high-quality outdoor sports bases; second, advancing employment by establishing public (industry–education integration) training centers; third, enhancing medical and health service capacity, encompassing the development of county-level medical consortia and rehabilitation and nursing capabilities, the renewal of equipment at county hospitals, the improvement of primary-level medical facilities, and the construction of smart healthcare platforms; fourth, developing elderly care and childcare service facilities, including strengthening publicly run elderly care and childcare services and expanding community-based service networks, while capitalizing on the expanded scope of the special bond “positive list” that now includes elderly care and childcare within the eligible capital expenditure category; and fifth, implementing an integrated urban–rural water supply project to ensure safe drinking water for both urban and rural residents. 

04

Improve the guarantee mechanism to ensure 

Project Implementation and Results 

The vitality of project planning lies in its implementation. It is recommended that Tonghai County establish and improve a sound mechanism for project planning and promotion across the following five areas. 

First, solidify the preliminary work for the project. Establish a rolling implementation mechanism that entails “planning a batch, stockpiling a batch, commencing construction on a batch, and putting a batch into operation,” and develop tailored pre-project advancement plans for each major project. Ensure that all requisite preliminary procedures—such as feasibility study preparation, site selection and planning, land-use pre-approval, and environmental impact assessment approval—are completed in advance, thereby guaranteeing that each project meets the eligibility criteria for submission. 

Second, precisely align with policy windows. Establish a county-wide task force for policy research to closely monitor developments in funding policies related to central budgetary investment, ultra-long-term special treasury bonds, and special-purpose bonds, and to seize opportune application windows. In accordance with the eligible areas of support and application requirements for these three types of funding, establish categorized project planning pools, application reserve pools, and implementation pools, ensuring that “projects are in place when funding becomes available, and preparations are in place when projects are submitted.” 

Third, strengthen coordinated assurance of production factors. Strengthen coordination and collaboration among the National Development and Reform Commission, the Ministry of Finance, the Ministry of Natural Resources, the Ministry of Ecology and Environment, the Ministry of Housing and Urban–Rural Development, and other relevant departments; implement a “one project, one plan” approach to ensure the availability of key resources for major projects; and take a holistic, integrated approach to address bottlenecks in land use, energy consumption, environmental protection, and other critical resource areas. 

Fourth, innovate investment and financing models. While making effective use of government investment funds, we will actively leverage social capital to participate in project development. We will explore pilot programs for real estate investment trusts (REITs) in the infrastructure sector to attract greater private-sector investment in urban renewal, industrial park development, and the integration of culture and tourism, among other areas. We will also support eligible projects in adopting the public–private partnership (PPP) model to broaden financing channels. 

Fifth, engage third-party institutions. Fully leverage the strengths of specialized consulting firms by selecting third-party advisory organizations with precise policy expertise and extensive practical experience to establish think tanks and foster long-term partnerships. By drawing on professional expertise, these firms can effectively conduct policy interpretation, project feasibility studies, and the preparation of application materials, thereby addressing the shortage of specialized personnel in relevant departments and enhancing the precision and professionalism of project planning and application submissions.