PPP: promises, problems

Liu Fei 刘飞 | AllBright Law Offices partner

Liu helped draft the new NDRC PPP work guidelines. Answering market concerns, she denies the new policy contradicts MoF’s guidelines, saying the absence of VfM and fiscal affordability in NDRC guidelines does not diminish their importance; governments and firms are encouraged to follow standards issued by other ministries. In addition, NDRC follows Bidding Law and MoF follows ‘Implementation measures on Bidding Law’, leading to the slight differences in requirements; but the two are not incompatible.

Xue Tao 薛涛 | E20 Environmental Platform senior partner

With 12 years of PPP consulting experience, Xue specialises in municipal construction and environmental projects. Currently a PPP expert for MoF, he argues the industry has grown from nappies to nursery, with more self-discipline and independence. He warns of irresponsible fundraising by local governments, financial institutions hoping for risk-free investments, and firms adding unnecessary leverage. Xue argues that despite friction between the two central agencies, local planning authorities and finance bureaus work together effectively, with local government playing a key moderating role.

context

18 nov 2016: PPP Law will first come out as regulations by State Council, says Jiao Xiaoping 焦小平 MoF

8 nov 2016: PPP is mooted by NDRC to revitalise the Northeast

27 oct 2016: NDRC releases ‘Guiding principles for implementing PPP projects in traditional infrastructure industries’

20 oct 2016: MoF releases ‘Finance management measures for PPP projects’ after its call for comment, removing the controversial clause reducing local government transfer payments for failing to pay private firms promised amounts

13 oct 2016: MoF releases the third batch of demonstration PPP projects, with total investment value of C¥1.17 tn

11 oct 2016: MoF releases ‘Notice on promoting PPP in public services’ , stipulating to explore mandatory PPP for waste and sewage disposal systems

15 sep 2016: NDRC releases list of PPP projects worth C¥2 tn covering energy, transport, water resources, agriculture, forestry and public works

30 aug 2016: NDRC releases focus areas for infrastructure PPPs

18 aug 2016: NDRC releases ‘Notice on conducting basic infrastructure PPP’ clarifying PPP projects under its jurisdiction

17 aug 2016: Qian Jin 钱璡 SUAEE PPP trading platform CEO says Shanghai United Assets and Equity Exchange (SUAEE) is preparing to launch a PPP secondary market by end 2016

11 aug 2016: expert calls for changes to tax policy to support PPPs

9 jul 2016: State Council announces its Legislative Affairs Office will lead merging PPP Law and Concession Law drafting, ending a clash between MoF and NDRC

7 jun 2016: State Council inspection uncovers obstacles for PPP implementation, following an inspection on barriers for private investment

27 may 2016: MoF outlines requirements for PPP projects’ information disclosure

30 sep 2015: MoF and ten financial institutions sets up a C¥180 bn fund toadvance PPP projects

12 sep 2015: MoF stresses PPP needs institutional investors such as insurance firms and pension funds

22 may 2015: State Council releases ‘Guiding Opinions on public service PPP projects’ to address private sector concerns

7 apr 2015: Liu Xiaoping 刘小平 Lianhe Ratings says local government financing platforms have found loopholes to profit from PPP

4 mar 2015: MoF and MoHURD launch PPP in municipal public services including utilities, bridges, roads, and transport infrastructure

8 dec 2014: Wu Yaping 吴亚平 NDRC says PPP can overcome shortcomings of both state and the market

（Source and author：China Policy，8 Dec 2016)

来源：China Policy

编辑： 李姝乐