guang’anushersinppp-欧洲杯在线开户
2015-04-08source: xinhua net sichuan comprehensive channel, guang’an daily/linshui news bureau lyu qinghui, reporter li qian
in 2014, guang’an city and citic jointly launched the first ppp project – guang’an “clean water action” regional water environment management project in china, in a bid to create bluer sky, greener land, and clearer water for guang’an.
in 2015, guang’an introduced 45 ppp projects worth over rmb 26 billion to investors. these projects cover a wide range of areas such as urban infrastructure construction, shantytown renovation, commercial and cultural auxiliary facilities, rural tourism, and health & aging care.
in the context that china’s economy is under downward pressure, local finance will face a broader funding gap. how to find investment? “we should innovate investment and financing mechanisms in key areas like public services, resources, environment, ecological construction, and infrastructure, and give full play to the positive role of social capital, especially private capital.” hou xiaochun, secretary of the cpc guang""an municipal committee, said frankly that as a weapon of investment and financing reform, the ppp model will open up a huge space for development. as the hometown of deng xiaoping, chief architect of reform and opening up, guang’an again plays a pioneer role in china. it took the lead in ppp-based private participation, promoting rapid and supernormal economic and social development. a new round of development is coming.
guang’an city: the first explorer of the ppp model
2014 marks the debut of the ppp model in china. in the same year, guang’an became the first explorer of the ppp model.
in the autumn of 2014, the huge “clean water action” plan was launched in guang’an, in a bid to create bluer sky, greener land, and clearer water for the city. before the campaign, the decision makers of guang’an had to solve a tough problem: how to raise rmb 3 billion for the campaign? for a city with a general public budget of rmb 4.6 billion in 2014, this was an undeniably big number. besides, turning to fiscal revenues would lead to a considerable increase in government debt.
“the ppp model provides a way to avoid local debt risks while giving new impetus to economic growth.” chief experts from the guang’an decision-making advisory committee, the top think tank of guang’an, proposed a solution. the reason, according to them, is that, on the one hand, infrastructure construction needs money, and on the other hand, private capital needs projects. undoubtedly, the ppp model provides an active and exploratory way to resolve the conflict in a win-win situation.
however, at that time, no national policy related to the ppp model had been introduced. can the government and the private sector become partners? he jijun, deputy director of the guang’an municipal investment promotion committee still remembers that in order to seek policy support, main leaders of the municipal party committee and municipal government went to beijing several times, to report to the ministry of finance, ministry of housing and urban development, and national development and reform commission. finally, the idea of ppp-based “clean water action” plan received the support of several ministries and commissions. guang’an was reassured.
without political worries, guang’an set out to carry out the ppp project. through numerous negotiations, the municipal government successfully established a partnership with citic in ppp-based water environmental management. citic is responsible for funding, operating and maintaining the project, and the government makes up the difference arising from project operations through buying public services. after a certain number of years, the government is entitled to reclaim ownership and franchise.
the cooperation with citic made guang’an the only city in sichuan province involved in the ministry of finance’s ppp model promotion project. another good news was that 30% of the rmb 3 billion investment required for the first phase of the project would be provided by the ministry of finance.
a taste of the success of the ppp model
the ppp model brought practical benefits to the people.
recently, huang jin, mayor of wangjia town, linshui county, often went to the wwtp to check the construction progress. engineering manager zhou jianfeng told him that the infrastructure construction of the wwtp had been basically completed, and after the wetland park is built, the next step is to build the pipe network and purchase equipment. the commissioning will start at the end of june, with a daily capacity of 500 tons. zhou jianfeng said with absolute certainty that the 7,000 people of yangchan town would no longer need to worry about the wastewater problem.
guang’an second wwtp located in guansheng new area, is also under construction. the project adopts the world’s advanced underground wwtp technology with the advantages of “eco-friendliness, land intensiveness and resource utilization”. the plant will integrate the functions of park-based leisure services, wastewater treatment, ecological environmental protection, and technology display, creating a better space for recreation and environmental education.
both the wangjia town wwtp and guang’an second wwtp are “works” of citic. on december 29, 2014, the groundbreaking ceremony of the guang’an intergrated regional water environment management ppp project was held in guansheng town, guansheng new area, guang’an district. projects launched this time include guang’an second wwtp, wusheng second wwtp, wangjia town wwtp renovation project in linshui county, and nongxi town wwtp renovation project (meeting higher effluent standards) located in the xiexing ecological culture tourism park. currently, citic is building more than 10 wwtps and stations in some districts, counties and industry parks in guang’an. these projects will further improve the environment of guang’an, accelerate the city’s economic transformation, and contribute to the city’s faster scientific development.
with the participation of citic, the “clean water action” plan is in full swing. on the one hand, water environmental management will no longer be troubled by funds. on the other hand, people’s living environment will be greatly improved. guang’an has had a taste of the success of the ppp model.
a new round of development driven by the ppp model
at the end of 2014, a set of national policies encouraging the application of the ppp model were introduced. in the context that “single digit growth” of fiscal revenues has become a new normal, and the government is enforcing a hard budget constraint at local level. ppp has become a hot topic nationwide.
as a rapidly growing emerging city, guang’an faces heavy infrastructure construction tasks in various districts, counties and industry parks, which indicate great potential for the promotion of the ppp model. in such a context, guang’an, as a ppp model pioneer, took a bigger step forward.
luo zengbin, deputy party secretary and mayor of guang’an specifically instructed that guang’an should hold a ppp project investment promotion conference at an appropriate time, to attract large enterprises with strength and credibility to the construction of guang’an infrastructure. right after the spring festival holiday, the guang’an municipal investment promotion committee threw themselves into studying ppp policies, and collected 45 ppp public infrastructure investment projects with a total investment of more than rmb 26 billion, covering urban infrastructure, shantytown renovation, commercial and cultural auxiliary facilities, rural tourism, health & aging care, and other fields.
the series of “ppp meals” prepared by guang’an have aroused great concern from investors nationwide. on the afternoon of march 31, yan li, general manager of yunnan yuntou ecology and environment technology co., ltd. for sichuan province, came to guang’an. during his inspection, yan li showed a strong interest in some ppp projects, such as guang’an economic development zone resettlement housing project, qianfeng district urban complex project, and qianfeng district infrastructure construction project.
since march 12 when guang’an introduced ppp investment projects through major websites, wechat platform and newspapers, more than 20 companies have visited guang’an. besides, among over 30 central enterprises that guang’an contacted actively, such as cccc western industry co., ltd., nuclear industry south-western construction group, china metallurgical group, and china state construction, some have also clearly expressed their intention of cooperation.
“in the well-known chinese and foreign enterprises’ visit to sichuan to be held in april, guang’an will hold a high-profile ppp project investment promotion conference, at which more projects will surely be signed.” large projects tend to be more powerful economic engines. after the launch of a large number of ppp projects, guang’an will usher in a new era of development.
related link: what is the ppp model
ppp, the acronym for public-private-partnership, is a model for the cooperation between the public and private sectors, and also a financing model for public infrastructure projects. the model encourages private enterprises to work with governments in the construction of public infrastructure, so as to provide public goods and services more efficiently, and enable limited resources to play a greater role. through this type of cooperation, the partners can achieve more favorable outcomes than those achieved through individual actions.
in the ppp model, private enterprises and governments are partners who share benefits and also risks. in public-private cooperation, the resources of the private sector are involved in the provision of public goods and services, thereby realizing the government’s public functions while bringing benefits to the private sector. in a ppp project, the government does not transfer all project-related responsibilities to the private enterprise; instead, both parties jointly share responsibilities and financing risks. also, an agreement will be signed to clarify shared responsibilities and financing risks, and also the rights and responsibilities that each party should enjoy and assume throughout the project, so as to maximize the strengths of both parties.
the key feature of the ppp model is that it involves the private sector in the financing, construction and operation of public goods and services to a great extent. compared with direct provision of public goods and services by the government, the model helps promote local debt management, alleviate government incremental debt, and absorb the government’s existing debt.