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PPP is expected to meet new opportunities for development, and the progress of projects in various regions is accelerated

PPP is expected to meet new opportunities for development, and the progress of projects in various regions is accelerated

  • Categories:Industry trends
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  • Time of issue:2020-07-27 14:50
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(Summary description)On July 6,the government of Ningxia autonomous region issued the notice on several measures to accelerate and standardize the promotion of the government social capital cooperation model and promote high-quality economic development(hereinafter referred to as the notice)in the[nzbgf[2020]No.17]document.The notice said that in order to promote the standardized development of the government social capital cooperation(PPP)model,attract social capital to participate in the economic and social construction of the region,supplement the infrastructure weaknesses and promote high-quality economic development,Effectively prevent and control the hidden debt risk of local governments.

PPP is expected to meet new opportunities for development, and the progress of projects in various regions is accelerated

(Summary description)On July 6,the government of Ningxia autonomous region issued the notice on several measures to accelerate and standardize the promotion of the government social capital cooperation model and promote high-quality economic development(hereinafter referred to as the notice)in the[nzbgf[2020]No.17]document.The notice said that in order to promote the standardized development of the government social capital cooperation(PPP)model,attract social capital to participate in the economic and social construction of the region,supplement the infrastructure weaknesses and promote high-quality economic development,Effectively prevent and control the hidden debt risk of local governments.

  • Categories:Industry trends
  • Author:
  • Origin:
  • Time of issue:2020-07-27 14:50
  • Views:
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On July 6,the government of Ningxia autonomous region issued the notice on several measures to accelerate and standardize the promotion of the government social capital cooperation model and promote high-quality economic development(hereinafter referred to as the notice)in the[nzbgf[2020]No.17]document.The notice said that in order to promote the standardized development of the government social capital cooperation(PPP)model,attract social capital to participate in the economic and social construction of the region,supplement the infrastructure weaknesses and promote high-quality economic development,Effectively prevent and control the hidden debt risk of local governments.
"The notice issued by Ningxia this time should not only accelerate the promotion of PPP mode,but also take the development of PPP as a measure to promote high-quality development,indicating that local governments attach importance to policy choices in the process of promoting economic development and take PPP as one of the best policy options."On July 20,jinyongxiang,chairman of Dayue consulting,told reporters.
After the Spring Festival,the government of Guangxi autonomous region launched the"Guangxi ten articles"to vigorously develop PPP.Subsequently,Shandong,Jiangsu and other provinces issued PPP related policies,reflecting the strong will of local governments to develop PPP.
"At the macro level,in the second half of the year,the management increased investment in infrastructure to stabilize the economic fundamentals and ensure employment.Because there is only investment left in the troika of investment,export and consumption,while in the investment,the data of manufacturing fixed investment and real estate investment are negative growth or flat,leaving a pillar of infrastructure investment.Due to the short preparation time for the rest of the year,the peak of financial commitment and the crowding out effect of special debt,it is estimated that in the second half of this year The infrastructure development in will not increase the number and amount of PPP project contracts,but may continue to reduce slightly."Zhang Liao,chairman of Jeb consulting,told reporters that the development focus of PPP will focus on the projects that completed procurement authorization at the peak of previous years,and how to conduct performance appraisal and payment,because thousands of projects have entered the operation period.
All regions accelerate the promotion of PPP
The reporter saw that the notice has made clear provisions on the reserve and approval of PPP projects,implemented the responsibilities of municipal and county governments and departments,and provided organizational guarantee for promoting PPP.The notice also proposes to reward the good and punish the bad,reward and support cities and counties that have made strong progress and achieved obvious results,and supervise and notify those that have failed to carry out their work.
The scope of the new PPP has been expanded.Article 2 of the notice stipulates that,in principle,all new sewage,garbage,heating,water supply,toll roads and other projects adopt PPP,which means that unless combined with PPP,the current popular special bonds will not be used in these fields.
At the same time,the notice stipulates that other government investment projects with certain income should give priority to the PPP mode,and orderly promote the transformation of stock projects into PPP.It can be seen that PPP is given priority in Ningxia government investment projects,and the existing projects formed by the construction of special bonds can be transformed into PPP projects in the future.
"The provisions of Ningxia are very clear,the determination to promote PPP is very great,and the standing height is rare in the past seven years."In jinyongxiang's view,Ningxia is by no means the last province to hold this wish."I heard that some provinces are also making preparations to promote PPP,but they have not yet issued documents.".Jinyongxiang said that the notice of Ningxia is of indicator significance.Like the PPP policy issued in Guangxi before,it represents that PPP has been highly recognized by local governments after reflection and policy comparison.
Under the background of steady growth and investment,the promotion of PPP projects in various regions is accelerating.According to the data released by the national PPP project information monitoring service platform on July 18,as of the end of June,4567 national PPP projects have passed the project approval,approval or filing,feasibility demonstration and implementation plan review.
According to the data released by the national development and Reform Commission,373 new PPP projects were added from January to June,of which Hunan,Jiangxi and Guizhou provinces had more new projects.Among these projects,the new urban infrastructure projects are the most,followed by agriculture,forestry and water conservancy,social undertakings,transportation,environmental protection,etc.Among them,there are 2855 urban infrastructure projects with a total investment of 4277billion yuan;939 agricultural,forestry and water conservancy projects with a total investment of 879.9 billion yuan;831 social undertakings with a total investment of 605.9 billion yuan;794 transportation projects with a total investment of 2280.4 billion yuan;765 environmental protection projects with a total investment of 396.5 billion yuan.The number of projects in these five industries accounts for 85%of the total number of projects and 86%of the total investment.
Of course,it is still important to strengthen the feasibility study of PPP projects.According to the requirements of the State Council on"strengthening the feasibility demonstration of PPP projects and reasonably determining the main contents and investment scale of the projects",the feasibility demonstration of PPP projects should be fully analyzed and demonstrated from the aspects of economic and social development needs,planning requirements,technical and economic feasibility,environmental impact,investment and financing schemes,comprehensive utilization of resources and whether it is conducive to improving people's quality of life,as well as from the necessity of government investment Analyze and demonstrate the project in terms of comparison and selection of government investment methods,project life cycle cost,operation efficiency,risk management and whether it is conducive to attracting social capital participation.
Welcome new development opportunities
This round of PPP started in 2013,experienced rapid development from 2014 to 2017,and experienced in-depth adjustment from 2018 to 2019.Now PPP is expected to usher in development opportunities again.
"All local governments attach importance to the key role of PPP in the'six stabilities'."In jinyongxiang's view,there is still great pressure to stabilize investment and steady growth in the second half of this year,and infrastructure investment is still an important measure to stabilize growth."Special bonds,as an important source of infrastructure investment,have been vigorously promoted in recent years,at a fast pace,but they have also caused some hidden dangers.Many local government officials are beginning to worry about this.If special bonds are audited or supervised in the future,many people are worried that they will be held accountable,so they are worried about using special bonds.This is also the reason why some places have changed hands and started to vigorously promote PPP projects."Jinyongxiang said.
"I understand that at least three provinces are also doing the work of restarting PPP projects.Jin Yongxiang said.As the epidemic is drawing to a close and all regions continue to return to work,the local policies introduced by some provinces to promote PPP work will play an important supporting role in stabilizing employment and growth.
Guangxi is the first place to eat crabs.It is reported that in order to make up for the shortcomings in infrastructure construction,Guangxi took precautions when the epidemic was the most serious,actively planned strategic measures to recover the economy after the epidemic,and formulated the notice on ten measures to further accelerate PPP work and promote steady economic development(hereinafter referred to as the"Guangxi PPP ten measures")to vigorously promote the PPP model from ten aspects,such as strengthening organizational leadership,strengthening policy support and financial support.
It is found that the ten articles of Guangxi PPP mobilize the enthusiasm of local governments to carry out PPP from many aspects.For example,cities and counties with strong efforts to promote PPP mode and high participation of social capital will be given preference in transfer payment and government bond fund arrangement."Support policies to focus on projects in key areas."
In jinyongxiang's view,the first article of the Guangxi notice specifies that governments at all levels should set up PPP leading groups,which is the first time in the rapid development of PPP mode in the past.The ten articles of Guangxi PPP emphasize that PPP projects in key areas such as transportation and other infrastructure,comprehensive urban development,ecological protection,education,health care,water conservancy,tourism,elderly care,culture and sports should be promoted,and public welfare projects with certain benefits should be given priority.The new sewage and waste treatment projects participated in by the government shall fully implement the PPP mode,and orderly promote the transformation of stock projects into PPP mode.In principle,relevant budget expenditures shall not be arranged for projects that have not effectively implemented the PPP requirements.Regions with heavy government debt burden should take PPP as an important way to improve infrastructure and public services,and use the PPP model to promote local development.
"Guangxi's policy has defined the key areas of PPP development,making the objectives of PPP participants clear.".Jinyongxiang said.For example,Guangxi has supervised the implementation of key areas and key PPP projects,strengthened the evaluation of PPP implementation effect by means of self-assessment,third-party assessment,social investigation,etc.,made a list,and made rectification within a time limit."Cities and counties that have done a good job in PPP shall be praised and given financial preference.On the contrary,they shall be interviewed,notified and rectified within a time limit."Jinyongxiang said that PPP,as a means of financing for compliance,has become more mature than special bonds after six to seven years of development,and can play a greater role in stabilizing investment."This is the fundamental reason why Guangxi,Ningxia and other places once again actively promote PPP.".

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