BEIJING: Public-private partnership (PPP) projects are quickly being launched in China as the country ramps up efforts to drive investment and consolidate economic recovery, the China Securities Journal reported.
From southwest China’s Yunnan Province to Shanghai Municipality on the eastern coast, several PPP projects covering afforestation, rural infrastructure and water purification broke ground last month in various parts of the country, according to the China Public Private Partnerships Center under the Ministry of Finance.
In July, 251 projects with a combined investment of 300 billion yuan ($44 billion) were inked. PPP projects act as a collaborative investment model between the government and private companies.
In recent years, China has promoted the funding for infrastructure and public works through this model, aiming to reduce local government debts and create new opportunities for private capital.
As China’s economy is currently in a critical stabilization stage, analysts believe PPP projects will play a more significant role going forward.
China has maintained its economic recovery so far this year, with fixed-asset investment up 5.7 percent year on year in the first seven months. Specifically, investments in infrastructure and manufacturing rose by 7.4 percent and 9.9 percent, respectively.
With infrastructure projects gaining traction, PPP projects will be crucial to increasing effective investment in the second half of the year, said Zheng Dawei with the investment banking department of the Shanghai Pudong Development Bank.
Zhang Liao, chairman of Shanghai Jumbo Consulting Co. Ltd., noted that PPPs have enormous untapped potential and urged targeted measures to accelerate building existing projects.
–The Daily Mail-CGTN news exchange item
