Article I In order to promote the management of pollution sources in Yunnan Province, according to the World Bank (referred to as the World Bank) staff assessment report, "the Dianchi Basin water quality of the most threatening industrial enterprises to give financial support to the pollution control", "the other control of pollution requires a relatively small amount of funds for industrial enterprises can be supported through the establishment of industrial pollution control fund" and other requirements. Establishment of industrial pollution control fund to give support" and other requirements, combined with the actual situation in Yunnan, has formulated this approach. Article 2 According to the "World Bank loan Yunnan environmental protection project management approach", "Project Agreement", "Loan Agreement", "Development Credit Agreement", China's use of the Bank's loans to the relevant provisions of the domestic funds, financial and capital management regulations, specially formulated these measures. Article III of the financing of microfinance:

(a) the World Bank loan of 5 million U.S. dollars (calculated on the basis of the U.S. dollar: RMB = 1:8.40, equivalent to 42 million yuan);

(b) the domestic supporting funds in accordance with the World Bank's 50:50 ratio of RMB 42 million yuan, injected in three years (1997-1999), 14 million yuan per year. million yuan. Supporting funds raised through various channels, of which:

(1) 7 million yuan/year at the provincial level (using the annual arrangement of the provincial environmental protection special funds to solve);

(2) 7 million yuan/year in Kunming.

(3) interest on deposits of small loans, interest on loans, the enterprise's default penalty penalty income. Article 4 The scope of use of microfinance:

(a) Dianchi Basin key pollution control projects;

(b) the province's "Ninth Five-Year Plan" during the 100 key sources of pollution control projects and municipalities around the key governance projects identified;

(c) pollution control demonstration projects;

(d) technological reform projects to promote cleaner production with a focus on pollution control;

(e) technological reform projects for enterprises that must be relocated or converted due to serious pollution;

(f) treatment projects for concentrated pollution in the region.

Priority will be given to the above projects within the Dianchi Basin. Article V to apply for microfinance project units must have the following conditions:

(a) in line with Article IV of the scope of use of microfinance;

(b) compliance with various environmental protection laws and regulations;

(c) in line with the local regional integrated pollution control planning, pollution control objectives are clear, the environmental benefits are obvious;

(d) the project has been technical and economic (d) the project has been technically and economically demonstrated to be practicable and approved by the relevant departments;

(e) the total investment is less than 1.2 million U.S. dollars;

(f) self-financing accounted for more than 30% of the total investment;

(g) commissioned by the bank to verify and certify that the enterprise has the ability to repay the loan, the debt settlement ratio should be greater than 1.4, with a reliable guarantee of loan repayment. Article 6 Kunming to apply for microfinance project units shall apply to the municipal environmental protection using the World Bank Loan Program Office (referred to as the municipal project office). Outside of Kunming, prefecture, city projects by the local Environmental Protection Bureau in conjunction with the financial sector after screening by the two joint application to the Yunnan Provincial Environmental Protection Bureau. Provincial projects shall apply directly to Yunnan Provincial Environmental Protection Bureau. Article 7 Loan applicants must provide the following information:

(1) Application Form for Small Loans for Environmental Pollution Control in Yunnan Province;

(2) Feasibility study report and approval of the project;

(3) Documents proving the implementation of the self-financing funds;

(4) Environmental protection departments of the project's environmental impact assessment;

(5) Loan enterprise (v) documents proving the payment of sewage charges by the lending enterprises. Article 8 Upon receipt of the loan application and related materials, the provincial environmental protection bureau shall promptly organize the relevant departments to gatekeep and summarize the relevant technical, feasibility, financial and environmental impact assessment of the application project respectively, and send it to the provincial finance department for review and report to the provincial government for approval before implementation.

Kunming City Project Office received the loan application and related materials, shall promptly organize the relevant departments to apply for the project on the relevant technical, feasibility, financial and environmental impact assessment and other aspects of the gatekeeper, summary, sent to the Kunming City Bureau of Finance for review and report to the municipal government for approval before implementation. Article 9 Projects applying for microfinance that have the need for land acquisition shall be handled in accordance with the corresponding procedures of the WB. Article 10 For provincial projects reviewed and approved, the enterprises shall sign loan contracts with the Department of Finance of Yunnan Province or the agent bank after providing loan project guarantees or commitments provided by their business supervisory departments or other units recognized by the finance as required. The local, state and municipal projects reviewed and approved by the local Finance Bureau shall be responsible for undertaking and transferring the loan and signing the loan contract. The local financial departments shall not change the loan conditions determined by the Provincial Department of Finance in the process of transferring loans. Article XI of the borrowing unit must ensure that the small loans earmarked, can only be used for the approved project content; if the misappropriation of behavior, the provincial Department of Finance has the right to recover the loan, and the daily interest rate of 4 ‰ on the misappropriation of part of the penalty. Article XII of the local, state and municipal environmental protection bureaus, financial bureaus and provincial authorities should be the use of small loans for daily inspection; the provincial Department of Finance has the right to organize or commission social intermediaries on the borrower's use of small loans, project progress supervision and inspection. Article 13 The environmental protection bureaus and finance bureaus of each region, state and city, as well as the provincial-level enterprises shall report to the provincial environmental protection bureau by the end of February each year on the annual use of micro-credit, project progress, accounting statements and other materials required by the provincial environmental protection bureau to be submitted. Article XIV of the provincial Environmental Protection Bureau before the end of March each year, according to the usual supervision and inspection of the information collected and the relevant units to report the material, write the province's annual report on the implementation of the project, sent to the Provincial Department of Finance for review.