Lukewarm reception for China’s PPP investment model

BEJING - China’s public-private partnership (PPP) model of investment - which calls for more private involvement in infrastructure building and public utility projects, with the government saying it wants innovative alternatives to boost infrastructure investment -  “has fallen far short of expectations in practice,” according to a report by the financial news group on Caixin.

“Despite the Government’s enthusiasm, private investors have remained lukewarm to the idea,” the report says.

In December, the China’s Finance Ministry announced 30 PPP projects, but so far, only three are in place - a sewage system in Chizhou, Anhui Province; a pollution control effort in Guiyang, Guizhou Province; and a wastewater processing plant in Hunan province.

A policy researcher close to the National Development and Reform Commission (NDRC) said that “without proper legal protection of private companies’ long-term interests in PPP projects and a clarification of supervision responsibilities, firms will hesitate to take part”.  www.webershandwick.cn (ATI).