International Finance Corporation (IFC), a member of the World Bank Group, and Yichang Municipal Government has signed a Memorandum of Understanding (MOU) to implement public-private partnerships that will help drive Yichang’s economy and provide essential public services.

PPPs have become an important tool that can help governments worldwide facing fiscal challenges to draw on the strengths of the private sector to drive economic growth. 

The partnership will focus on social projects—such as healthcare, transportation, the environment, and sanitation. Under the terms of the MOU, Yichang and IFC will collaborate to identify suitable private sector partners, structure projects, and carry out capacity-building activities. 

Over almost 30 years, IFC has worked on more than 360 PPP transactions worldwide in over 100 countries, many in challenging regions or countries that have difficulty in attracting investors. In the last decade, IFC’s PPP Transaction Advisory team has mobilized nearly US$20 billion of private investment in infrastructure and helped governments improve basic services such as power, transportation, health, water, and sanitation. 

Philippe Le Houérou, IFC Executive Vice President and CEO, said:

“This partnership, IFC’s first PPP infrastructure advisory with a municipality in China, will support growth in Yichang by helping businesses improve their productivity and tap new markets. IFC looks forward to working with China to further develop its PPP framework in line with its needs.” 

Mr. Huang Liming, Deputy Mayor of Yichang, stated:

“Increased private sector participation in public services sectors is a cornerstone for local economic development and job creation”, said “We are pleased to work with IFC, a multilateral with rich global expertise, to find the best PPP solutions for Yichang.”