It is learnt that the Ministry of Finance (MOF) is selecting the fourth batch of demonstration projects of public-private partnership (PPP) with industrial commissions in order to implement the spirit of the 19th National Congress of the Communist Party of China, strengthen administration, and give full play to PPP’s function of stabilizing economic growth, benefiting people’s livelihood and preventing risks.
The MOF stated that they select projects focusing on stimulating market vitality and encouraging developed regions. It gives priority support to projects with participation of private enterprises, projects in cities and counties which have gained remarkable effect in promoting PPP mode, and projects in industries such as environmental protection, agriculture, water conservancy, consumption safety, smart city and tourism, culture, education, sports and pension industry. It encourages applying PPP mode with standard to vitalize public service asset, attract social capitals to join in operation, and improve supply quality and efficiency of public service.
Liu Xiangdong, associate researcher from economic research department of China Center for International Economic Exchanges (CCIEE), said in an interview on November 20 that according to the requirements for applying for the fourth batch of PPP demonstration projects jointly issued by the MOF and 18 industrial commissions, one province (including district and city) and one industrial commission should not apply for more than 60 and 5 projects in principle. There are strict conditions for selecting the demonstration projects, and priority support will be given to some happiness industries including pension industry.
Liu said that seen from the previous three batches of projects which have been implemented, projects in municipal engineering, transportation, and ecological construction and environmental protection were implemented the most, accounting for 64.3 percent of the implemented projects. As required by the MOF, the provinces (districts and cities) and industrial commissions should submit written application reports and list of projects for application by August 25, 2017. Therefore, demonstration projects are expected to be selected by the end of the year.
By now, the MOF and industrial commissions have launched 697 PPP demonstration projects in three batches with investment amount of 1.8 trillion yuan. 572 of them have been carried out with investment amount of 1.5 trillion yuna. In the fourth batch, 1,226 projects from various districts have been applied with investment amount of 2.12 trillion yuan.
Tang Chuan, chief research officer from PPP research center of jinrong.360.cn, said in interview that it was stressed in report of the 19th National Congress that while the government does its best and does according to its abilities to guarantee and improve people’s livelihood, it should pay attention to balanced supply of public service to meet demand of people’s live gradually as well as manage people’s expectation. Many administration departments conduct management adjustment to PPP mode of infrastructure and public service and its related work module. It has make practical efforts in mobilizing enthusiasm of private capitals, optimizing quality of project assets and increasing asset liquidity.
Recently, the National Development and Reform Commission (NDRC) released a circular on checking approval on application of private investment projects. Tang remarked that it is a follow-up of previous circulars before.
Tang added that after the State Council proposed at the executive meeting on July 5 to offer more high-quality assets and introduce various investments via PPP mode, how to reasonably introduce private capitals into important investment fields become one the key work of administrators. After the NDRC put forward many policies which are of great significance to attracting private capitals, it rolled out this work proposal aiming to improve government’s acceptance to private investment. It is expected that the overall efficiency of PPP projects introducing private capitals will be raised remarkably in the future.
Translated by Vanessa Chen
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