PPP Projects Being Accelerated, But Private Investment Still a Concern

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Why Did Private Investment Collapse? Private Investors Fled Public Projects

According to July data, more PPP projects are being funded:

Third quarter data show, two batches of the Treasury a total of 232 pilot projects, with a total investment of about 802.5 billion yuan, as of the end of June 2016, these two groups of demonstration projects landing a 48.4% increase over the end of March 35.1%, increase of 13.3 percentage points.

Participation of more than 60 demonstration projects consulting Yue, general manager of a large consulting firm Jin Yongxiang told CBN reporter, the Ministry of Finance PPP pilot project is expected to eventually landing rate can exceed 90%.

While numbers are improving, the overall data is not improving as quickly and private investment still lags:

Press the floor rate method of calculation, 1, 3, 6 at the end of landing rates were 20%, 21.7%, 23.8%, showing a steady improvement in characteristics.

However, the end of June, the national PPP project landing rate (23.8%) was still significantly lower than the Ministry of Finance PPP demonstration projects (48.4%).

iFeng: PPP示范项目落地率飙升 非国企参与率超四成

China Daily: State promotes public-private partnerships

This year has seen more than 600 PPP projects implemented, 23.8 percent of the signed PPP contracts. According to the Ministry of Finance, 39 percent of them have private business partners.

Facing such pressure of economic slowdown, policies such as administrative streamlining, expanded market access and favorable taxation may help boost private investment, said Wang Manchuan, secretary-general of the China Society of Administrative Reform.

CRI English: China to promote PPP to boost private investment

New programs are reportedly being created to promote more standardized public-private partnership agreements.

This follows a recent meeting of the State Council chaired by Premier Li Keqiang.

The new programs will specifically target the public services sector.

Tax policies are going to be tailored to better suit the financing systems for Public Private Partnerships.