pppprojectsshowagrowingtrendpeople’sdaily-欧洲杯在线开户

      recently, the ministry of finance’s china ppp center announced the second quarter report of the national ppp integrated information platform project library. across china, a large number of ppp projects have been signed and launched, and over one trillion funds have been invested in them. a unified, regulated, transparent and competitive ppp market is gradually taking shape, acting as an important engine of supply-side structural reform and stable economic growth.  

      ppp project library grows month by month, with growing number of launched projects 

      the quarterly report shows that the national ppp integrated information platform project library contains projects from 19 industries, including energy, transportation, hydraulic engineering, ecological development & environmental protection, municipal engineering, area-based development, agriculture, forestry, science & technology, affordable housing projects, and government infrastructure. as of the end of june, there were 9,285 ppp projects in the project library, with a total investment of rmb 10.6 trillion. among the above industries, municipal engineering, transportation, and area-based development were the top three by both volume and value. municipal engineering took the lead, with 3,241 projects worth rmb 2.8 trillion, covering wastewater treatment, municipal roads, water supply, garbage disposal, and rail transportation. 

      the project library has been growing constantly, with an average monthly increase of 457. compared with the end of march, municipal engineering, transportation, and tourism saw the fast growth by volume, with 573, 243 and 92 new projects respectively; and transportation, municipal engineering, and affordable housing projects registered rmb 839.5 billion, rmb 398.4 billion and rmb 153.8 billion of new investment respectively. the project library also shows some geological preference. guizhou, shandong, xinjiang, sichuan, and henan are the top five preferential destinations.  

      “a ppp project is managed throughout its life cycle from identification, preparation, procurement, implementation to transfer. a ‘landed’ project is any project that has been launched or transferred.” according to the person in charge at the ministry of finance’s china ppp center, by the end of march, 369 ppp projects had been launched, and by the end of june, this number increased to 619, with a total investment of rmb 1 trillion. compared with q1, q2 registered 250 new projects, an increase of 67.7%, indicating that the project library has been growing at an accelerated rate. 

     the person in charge stressed that in the project library, about 70% projects are still in the stage of identification. they are backups that haven""t passed the value for money and financial affordability evaluations. a qualified ppp project must pass a series of strict evaluations.  

     demonstration project “landing” period averages 13.5 months.

     ministry of finance demonstration ppp projects are included in the project library. in accordance with the principle of “fast and practical” and “entry and exit”, the ministry of finance has approved two batches of demonstration ppp projects in 2014 and 2015. what’s more, launched projects are subject to its embedded and full process management, to ensure that every demonstration project is carried out as required, becoming real “model” and “benchmark”. 

     according to the quarterly report, as of the end of june 2016, 232 demonstration projects in two batches had been approved, with a total investment of rmb 802.54 billion. among them, 105 projects had been launched, taking up 48.4% of the total, much higher than the national average. the ministry of finance ppp model demonstration project registered a growing number of launched projects. compared with q1, q2 recorded 32 new projects, an increase of 43.8%. “among launched ministry of finance demonstration projects, 53 projects have announced landing information. the ‘landing’ period of a ppp project, from application to signing, averages 13.5 months, and can be as short as 6 months.”  the person in charge at the ministry of finance ppp center said that a total of 119 private investors had signed ppp projects, including 43 private enterprises, 8 mixed ownership enterprises, 3 foreign enterprises, and 65 state-owned enterprises. among the private investors, 36% were private enterprises, and 45% were non-state-owned enterprises.  

     it can be seen from launched demonstration projects that the advantages of the ppp model in introducing market mechanisms, changing management methods, and improving the efficiency of public services have become apparent. taking the dali erhai lake water environment management ppp project as an example, thanks to private participation, the project was comprehensively optimized and technically upgraded, which saved rmb 600 million of investment, and shortened the project period by 6 months. all stakeholders, including the government, private investor, and the public, can benefit from the project. 

     a few days ago, 20 ministries and commissions including the ministry of finance, ministry of education, and ministry of science and technology jointly issued a notice to launch the third batch of demonstration ppp projects. the third batch of demonstration projects will be upgraded from ministry level to national level, where their relationships with national key projects may be built. cross-industry cooperation, regional clusters, model innovation are encouraged to cultivate a number of demonstration projects promoting industrial, regional and innovation-driven development. 


further lowering barriers to entry to encourage private participation   


“a dynamic ppp market should be a market where multiple entities coexist and compete fully.” chen shaoqiang, a researcher at the china academy of fiscal science, said that the promotion of the ppp model nationwide aims to encourage private participation in traditional public domains, so as to diversify the supply of public goods and services, promoting supply-side structural reform. 


   among investors of launched ppp projects, state-owned enterprises are much active than private enterprises by value.  this is mainly caused by policy and financing limits faced by private enterprises. on the one hand, a ppp project consumes a great amount of money in a long project period, which indicates certain risks and uncertainties. on the other hand, private enterprises worry more about policy changes. in addition, some ppp investment fields haven""t been fully opened to private enterprises, and financing is still a difficult and expensive problem for private enterprises. all these elements make many private enterprises unable to enter the ppp market.  


   chen shaoqiang warned, “if state-owned enterprises overwhelm private enterprises, the traditional investment mechanism will regain its control, affecting the optimization of social capital structure, and diversified supply of public goods and services.” he added, “we urgently need a more mature modern national governance system, and the enactment of ppp-related laws and regulations, to encourage private participation in ppp projects in a supportive legal environment.  for example, we should develop a negative list, further lower barriers to entry to some markets such as public services and infrastructure, treat all types of private investors equally, and prevent such problems as ‘glass door’ (invisibly keeping investors out), ‘spring door’ (forcefully keeping investors out), and ‘revolving door’ (confusing investors) from happening.  


  to involve more private enterprises in ppp projects, we should formulate more reasonable financial support policies, encouraging various financial institutions to provide safe and stable financial services.”  wen hao, strategic planning manager of the international strategy research department of the china development bank financial research center, said that development financial institutions and policy banks may take advantage of medium and long-term financing to provide comprehensive financial services such as investment, loans, bonds, leases and securities for ppp projects. they may also ally with other banks and insurance companies to expand the financing channels of ppp projects by means of syndicated loans and entrusted loans. special credit supports such as long-term preferential interest rate loans should be provided to infrastructure projects supported by the state, such as hydraulic engineering, wastewater treatment, and shantytown renovation projects. 


  in addition, policy banks may also provide planning consulting, financing consulting, financial consulting and other services to ppp projects, and actively offer supports in terms of project planning, financing program design, financing risk control, and social capital introduction, to improve the operation efficiency of ppp projects.  


  for commercial banks, in addition to providing operation efficiency support, they may also invest in ppp projects via funds. through setting up ppp industrial funds as limited partnerships, financial institutions may sign industrial fund contracts with local governments and project operators, to invest in infrastructure projects that generate stable cash flow and reasonable profits.