It is learnt from insiders that the National Development and Reform Commission (NDRC) will release the second batch of PPP asset securitization programs with similar number with the first batch. The second batch of PPP asset securitization programs will involve waste water treatment, high-speed roads, refuse burning and power generation.
Meanwhile, in order to promote the sound development of PPP asset securitization, relevant authorities are considering streamlining approval procedures, which will further facilitate market-based operation and attract more social capitals.
The NDRC provided a letter of recommendation on the first nine PPP asset securitization programs to China Securities Regulatory Commission (CSRC) this March, which includes programs in transportation facilities, industrial parks and other traditional infrastructure. Shanghai and Shenzhen stock exchanges issued letters of no objection on such asset securitization programs as heating supply in Gu’an Industrial Park and tunnels on Hangzhou-Qingchun road. It marks the official implementation of the first PPP asset securitization programs in China.
Currently, four of the first nine PPP asset securitization products have been officially released with a total size of 2,714 million yuan. The remaining five programs will be released soon.
The effective integration of the PPP model and asset securitization can bring a new financing channel for infrastructure construction and vitalizing inventory capitals, which is of significance, indicated Ding Bokang, an expert for the NDRC and the Ministry of Finance.
“Waste treatment programs are expected to account for half of the second batch of PPP asset securitization programs. The remaining are high-speed roads, refuse burning and power generation programs,” an insider indicated.
The NDRC previously indicated that it will arrange experts to conduct appraisal on the PPP programs submitted and actively promote mature and qualified programs to issue securitized products. It will also summarize relevant experiences and better facilitate the sustainable and sound development of PPP asset securitization. Meanwhile, the NDRC will further strengthen the communication and coordination with the CSRC and share information on PPP programs to coordinate in the problems and difficulties in asset securitization. Relevant divisions of the CSRC have established green channels for the handling, approval and filing of businesses and arranged special persons to be responsible for relevant to improve the working efficiency in the approval, establishment and filing of relevant asset securitized products in PPP programs.
Translated by Star