Beijing unveils list of 1,043 PPP projects
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The Republic of China has announced a list of 1043 public private partnership (PPP) projects in 29 areas on the database launched by China's National Development and Reform Commission (NDRC).
The NDRC has also announced the appointment of Xu Kunlin as head of the fixed-asset investment department within the NDRC.
The projects belong to several sectors including environment, transport and social infrastructure. Important projects that are included in this pipeline are, among others, the Beijing's 47. 3 km metro line 14, the Beijing's 49.8 km metro line 16 and a water treatment facility to be located in Beijing's Fengtai district.
The total investment of these projects is estimated at about CNY1.97 trillion (US$321.6 billion).
China has plans to push the use of PPP projects to increase private investment in the country. To achieve this objective the government, through the State Council, issued Circular No. 42 on May 22 which encouraged private sector participation in 16 areas, such as energy and education.
The commission published in a press release:
"The NDRC reviewed projects already announced by local governments and established the PPP database to promote them to the public."
According to a report from Minsheng Securities Co Ltd, since August 2014 more than 34 local governments have proposed PPP projects, worth about CNY1.6 trillion (US$261.2 billion) but only about one-eighth have so far signed contracts, because of fears over low returns and long payback periods.
During this year we have reported about three PPP projects signed in the country:
