Special bonds refer to government bonds issued by local governments for public welfare projects with certain income, and it is agreed to repay the principal and interest with government funds or special income corresponding to public welfare projects within a certain period of time. The declaration and issuance of such bonds need to follow a certain process. The following details the declaration process of special debt projects:

Project reserve stage. All localities and departments first determine the specific projects that need the support of bond funds and meet the conditions and requirements for issuing bonds in the national macro policies, departmental and industry development plans.

Pre-project preparation stage. The project unit shall conduct preliminary research on the declared project, carry out feasibility analysis of the project on the premise of confirming that the project conforms to national policies and relevant industry regulations, prepare the feasibility report of the project, the development and reform department shall go through the project examination and approval procedures, and the planning, land and environmental protection departments at the same level shall issue relevant approval documents for the project.

Local customs declaration and warehousing stage. The applicant shall apply to the Finance and Development and Reform Commission at the same level for inclusion in the "Local Government Bond Project Library" and "National Major Construction Project Library". In accordance with the principle of "funds follow the project", the provincial development and Reform Commission and the provincial department of finance conduct initial verification of special debt projects, and then submit them to the relevant "project library" of the National Development and Reform Commission and the Ministry of Finance respectively.

Project approval and quota distribution stage. After the screening and examination in the first three stages, the special debt project can only be issued and used after the approval of the relevant state departments and the release of the quota.

In addition, the declaration and issuance of special bonds also need to follow certain audit rules and policy documents, including:

Review the rules. Detailed evaluation rules in 2022 include: project nature, project income, government support, repayment source, bond scale, issuance method, issuance cycle, raising period, issuance interest rate, etc.

Policy document. The declaration and issuance of special bonds also need to follow relevant policy documents, such as the Measures for the Administration of Local Government Bonds and the Interim Measures for the Administration of the Issuance and Use of Local Government Bonds.