In the first 11 months of 2021, there will be 478 projects with an investment of nearly 900 billion yuan -
PPP is an important starting point for stable growth.
Our reporter Wu Yadong
According to the project data of the national PPP (government and social capital cooperation) comprehensive information platform management database project released by the Ministry of Finance Government and Social Capital Cooperation Center, in the first November of 2021, 595 new PPP projects entered the database with an investment of 1,177.3 billion yuan, a year-on-year increase of 1.177 trillion yuan. A decrease of 390.5 billion yuan, a decrease of 24.9%; 527 signed and implemented projects with an investment of 1,210.3 billion yuan, a year-on-year increase of 49.6 billion yuan, an increase of 4.3%; 478 construction projects with an investment of 890.2 billion yuan, an increase of 31.2 billion yuan, an increase of 4.3% year-on-year 3.6%.
Although the investment amount of newly entered projects has decreased, the investment amount of contracted and implemented projects and the investment amount of construction projects have increased steadily.
The Central Economic Work Conference proposed to carry out infrastructure investment moderately ahead of schedule.
The PPP model has played an important role in helping to implement major national strategies, especially supporting infrastructure construction, by guiding the direction of social capital investment and stimulating the vitality of private investment, ushering in new development opportunities.
Usher in a new stage of development
The Beijing 2022 Winter Olympics and Winter Paralympics are about to be held, and the Winter Olympics venues will become the focus.
The National Speed Skating Stadium located in Beijing Osen Park was built and operated by the PPP model by introducing social capital parties such as Shoukai Group and Beijing Urban Construction Group.
"Adopting the PPP model to attract social capital to participate in the construction and operation of the Winter Olympics venues can not only attract social forces, ease the pressure on government funds, but more importantly, give full play to its comprehensive and professional advantages in investment and financing, construction, operation and management, etc. to improve the quality and efficiency of public services," said Wu Weixing, vice president of the University of International Business and Economics.
Since 2014, a total of 10,209 PPP projects have entered the library with an investment of 16.1 trillion yuan; a total of 7,618 projects have been signed and implemented with an investment of 12.7 trillion yuan, and the contracted implementation rate is 78.8%; a total of 4,748 projects have started construction with an investment of 7.5 trillion yuan. Yuan, the operating rate was 46.6%.
After several years of exploration, the PPP market has gradually matured and entered a stage of standardized and stable development.
Wu Weixing analyzed that in the past few years, PPP has promoted changes in the quality, efficiency and power of public service supply by relaxing access, breaking monopoly, introducing competition, encouraging innovation, adhering to performance orientation, and coordinating the two resources of the government and the market.
After practical exploration, the PPP model has become an important starting point for my country to stabilize growth, promote reform, adjust structure, and benefit people's livelihood.
Li Wei, partner of government and infrastructure consulting at KPMG Consulting (China) Co., Ltd., analyzed that the PPP model continues to promote the transformation of government functions, simplify work processes, strengthen management levels, improve service quality, strengthen consultation, co-construction and sharing, and vigorously promote information disclosure. Optimize the business environment and improve the ability and level of government governance.
"Moderately advanced" with dry hair
"The implementation of moderately advanced infrastructure investment, the PPP model is very promising." Fang Fang, a professor at the School of Public Economics and Management of Shanghai University of Finance and Economics, said that the PPP model provides services through market competition. Excessive infrastructure investment that is out of touch with actual demand is excluded, which is conducive to achieving "moderately advanced".
In fact, the PPP model has been active in infrastructure construction in various fields in recent years.
Taking "two new and one heavy" (new infrastructure, new urbanization, transportation and water conservancy construction major projects) as an example, in the first 11 months of 2021, there will be 473 new projects with an investment of 1,035.1 billion yuan; 395 projects have been signed. , with an investment of 997.2 billion yuan; 405 construction projects have started with an investment of 782.2 billion yuan.
Among them, the top five investment in new projects are: 643.7 billion yuan for transportation, 236.7 billion yuan for municipal engineering, 75.9 billion yuan for comprehensive urban development, 47 billion yuan for ecological construction and environmental protection, and 29.8 billion yuan for affordable housing projects.
"By guiding social capital to enter the PPP model, it can not only solve the capital needs of moderately advanced infrastructure investment projects, especially major projects, but also encourage innovation and exploration in terminal applications, and greatly strengthen the role of the government's 'referee'. , play a role in an appropriate position, and more respect the laws of technological development and the market." Fang Fang said.
Ji Xinhua of the Investment Department of the National Green Development Fund believes that, "On the one hand, the PPP model can stimulate the vitality of private investment, leverage social capital, and increase the provision of public infrastructure in a targeted manner. The role of cyclical and counter-cyclical macro-control; on the other hand, the PPP model can also help to give full play to the comparative advantages of social capital in construction and operation, accurately pay attention to the public service areas that the people are most concerned about, and effectively improve the quality and efficiency of public service supply. efficient".
Supervision and management of "long teeth"
Only by standardized development can we achieve stability and long-term progress, and information disclosure is an important starting point for promoting PPP work in a standardized and orderly manner.
A few days ago, the Ministry of Finance issued the "Administrative Measures for the Information Disclosure of Public-Private Partnership (PPP) Comprehensive Information Platforms" to promote the full life cycle of PPP projects to operate under the sun.
Compared with the previous relevant regulations, the "Measures" expands the scope of information entry subjects, and optimizes the original unilateral entry by the financial department into a division of labor between the financial department, implementing agencies, social capital, financial institutions, project companies, and consulting agencies. Enter, and at the same time compact the main responsibility of the information disclosure of the financial department.
In addition, in line with the requirements of performance management, contract performance management and public supervision, the project information, especially the project implementation stage information, is increased, and the information of project participants such as experts and financial institutions is added.
"Through the specification of the "Measures", for the whole life cycle management of PPP projects, its information transparency and fairness are stronger, which can further improve the management efficiency of PPP projects and promote the scientific, standardized and sustainable development of my country's PPP market. ” said Zhao Guohua, Director of the Consulting Department of the PPP Research Center of Shanghai Jiao Tong University.
Strengthening the disclosure of PPP information can promote information symmetry among PPP project participants such as the government, social capital, financial institutions, and consulting institutions, enhance market transparency, reduce market transaction costs, and improve the efficiency of market resource allocation.
"Participation in the investment and operation of PPP projects is a major decision for social capital, and it can even be said to be a major decision at the strategic level of the enterprise. In order to ensure the quality of decision-making, social capital needs effective, true, comprehensive and timely information and information. Correct analysis is the basis for its decision-making." Fan Yongfang, an expert in the PPP expert database of the Ministry of Finance, said.
Chen Jiawei of the Credit Management Department of the Agricultural Bank of China also believes that the "Measures" comprehensively regulates that all participants of PPP projects such as financial departments, project implementing agencies, project companies, social capital, and financial institutions should be disclosed in the preparation, procurement, and implementation stages of PPP projects. The specific information, "It is of great help for financial institutions to use comprehensive information platform information to conduct pre-loan due diligence and post-loan management".
The key to promoting PPP information disclosure to improve quality and efficiency is to let supervision and management "grow teeth".
To this end, the "Measures" clarified the time limit for project information update, requiring that for management database projects in the preparation and procurement stages, the project information update cycle should not exceed 6 months; for management database projects in the implementation stage, the project information update cycle should not exceed 6 months. 12 months.
Keeping the bottom line of risk is critical.
In order to prevent individual PPP projects from deliberately evading supervision and increasing the hidden debt risks of local governments by not being included in the database and not updating information in a timely manner, the Measures clearly stipulate that projects that are not included in the management database and are implemented in the name of PPP by themselves, and those that violate these regulations. For projects that require information disclosure management and have not been rectified within the time limit, no financial funds related to PPP projects shall be arranged.
"The "Measures" clarified the PPP information update cycle and timeliness, and put forward stricter rectification requirements and regulatory measures to make PPP project management more transparent and promote a more healthy development of the PPP market." Zhao Guohua said.