Caixin
ECONOMY

Government Tries Harder to Lure Private Money Into Infrastructure

By Pan Che
At the end of September, out of 944 companies participating in 572 “model”  public-private partnerships projects that have already started, only 328 are privately owned, accounting only for 34.7% of the total, down from 38.9% at the end of 2016, official data show. Photo: Visual China
At the end of September, out of 944 companies participating in 572 “model” public-private partnerships projects that have already started, only 328 are privately owned, accounting only for 34.7% of the total, down from 38.9% at the end of 2016, official data show. Photo: Visual China

The Chinese authorities are ramping up efforts to attract more private capital into state infrastructure projects through public-private partnerships (PPP) as interest in the three-year-old initiative has failed to take off and put more pressure on debt-laden local governments to come up with the money themselves.

China’s top economic planning agency, the National Development and Reform Commission, published guidelines for local governments on Thursday that included incentives to encourage private companies to participate in PPP ventures. It also warned officials that continued efforts to raise funds for projects through irregular and banned channels will be punished.

You've accessed an article available only to subscribers
Try 4 weeks for $0.99
SUBSCRIBE
Share this article
Open WeChat and scan the QR code
Copyright © 2018 Caixin Global Limited. All Rights Reserved.