Treasury: Urbanization 6 years or 42 trillion investment needed capital from China

By 2020, the number of new urbanization funding needs ?

Yesterday ( March 20 ) , published by the Ministry of Finance website 's Vice Finance Minister Wang Baoan speech that the urbanization rate is expected to reach 60% by 2020 , resulting in investment demand is about 42 trillion yuan . Wang Baoan is on government cooperation and social capital (PPP) training disclose this data . Wang Baoan said this 42 trillion yuan more likely to come from social investment . Original urbanization depends finance, investment and financing system has shown the shortcomings of land , can not be sustained , urgent need to establish a standardized and transparent urban construction investment and financing mechanism , "PPP model captures the urbanization effective solution to this critical part of the financing needs . "

Wang Baoan said: "The blueprint has been drawn, the path is already clear ." Known PPP insiders to the "Daily Economic News" reporter said that if there is policy support, there are lessons learned , PPP urbanization will become an important source of funding sources.

PPP can effectively relieve pressure on government debt

Under the Government to promote government procurement of services , open to the public and other funds backgrounds , PPP model usher in new opportunities .

The industry said that the current domestic funds in the construction or completion of the PPP project involves about four five trillion yuan of scale, construction funding gap by urbanization , PPP much space.

Held at the end of the national financial work conference , Finance Minister Lou Jiwei specifically requested a special meeting set to open government and social capital Cooperation (PPP). Lou Jiwei instructions "organization PPP business training topics , real carry this thing up ."

Currently, the Ministry of Finance is moving from the system , institutions, projects and capacity building fronts to promote PPP mode.

Wang Baoan said that promoting the use of the PPP model is an important means to support the construction of new urbanization , PPP model will attract social capital , urbanization broaden financing channels , a diversified and sustainable funding mechanism. In addition, the promotion of the use of the PPP model is an important measure to improve the government's public service .

Wang Baoan said : "PPP model can be the government 's strategic planning , market supervision, social management and public services, capital efficiency , technological innovation combine together to help clarify the boundary between government and market , to enhance awareness of the legal government contract consciousness and market awareness, better fulfill public functions , to enhance the level of public services . "

Third Plenary Session of the Party's eighteen proposed to establish a modern financial system , in Wang Baoan seems to promote the use of the PPP model is to establish the inherent requirements of a modern financial system , "PPP model emphasizes the role of market mechanisms , emphasizing the various government and social capital to make best to emphasize the depth of participation in social capital , which can effectively reduce the government debt burden , smooth inter- annual expenditure, in line with the modern financial system to optimize the allocation of resources , promote equitable social demands . "

Revenue PPP projects will become the focus of the promotion

Since the 1990s , PPP began to practice in the country to use this practice more of a " bottom-up" self- exploration, confined to the project level , the lack of experience, institutional arrangements and theoretical guidance . Judging from past experience , the United Kingdom , Australia, Canada and other countries have set up special finance department PPP management body responsible for promoting the PPP model of development to fulfill the study design , project reserves , financing support , bid management , dispute and coordination duties.

Wang Baoan introduction, the Ministry of Finance is working to establish a PPP mechanism , and actively promote the establishment of PPP management institutions, strengthen the risk-sharing mechanism of competition , the government promised a reasonable , uniform guide subsequent contract management and other aspects .

At present , the domestic PPP unsound generally face legal problems, which bring to the PPP cooperation concerns . There are companies to the "Daily Economic News" , told reporters that now cooperate with the government are generally simple sign a contract , if there is a problem , fear difficult to safeguard the interests of business .

Wang Baoan that the existing regulations and policies associated with the PPP mostly departmental regulations or local laws and regulations , lack of authority, even among conflicting part of the file , he proposed " to build a system suitable PPP model development environment ."

Earlier, Lou Jiwei said, to attach great importance to the pilot PPP projects , clear instructions required to catch a few really out PPP projects .

Wang Baoan said, " catch the model, establish a benchmark " to carry out a pilot PPP projects as soon as possible . As for the specific model, he said , could be considered Select revenue is relatively stable, relatively large investment scale , long-term contractual relationships more clearly , more mature technology development pilot projects , " such as municipal water supply , sewage treatment , waste disposal , protection of housing construction , etc. existing projects can also introduce PPP model upgrade . "

Currently, the Ministry of Finance is screened for PPP projects , which will serve as the profitability of the project or the PPP model in focus , Wang Baoan said: "The stock and new urban infrastructure projects to conduct a comprehensive sort , filter out the right project as soon as possible in advance first try . "

In addition, the local financial sector to play a more prominent role in the promotion of PPP . Wang Baoan that local financial departments at all levels to work closely with reality, actively promote the building is conducive to encourage and guide social capital to participate in the institutional environment of PPP projects , and fully mobilize the enthusiasm of all kinds of social capital, to achieve multi-level diversification .

The above PPP industry veteran to the "Daily Economic News" reporter , said , PPP is a summary of the most important promotion successes and failures, many projects in the repeated "tuition ."

Interview

Experts Jin Yongxiang PPP : PPP more necessary to promote the spirit of contract

Jin Yongxiang , Chinese Finance Association Professional Committee of the Standing Committee of PPP , a large consulting Yue , general manager , as early as the 1990s, the country had been involved in a large number of PPP project operation and success stories , the industry was best known as the PPP mode of operation and rules of the main practitioner.

In an interview with the "Daily Economic News" reporter ( hereinafter referred to as NBD) interview , Jin Yongxiang promotion of PPP projects of past experiences and lessons are summarized.

NBD: Ministry of Finance may be a large-scale promotion of PPP model , you evaluate this for what ?

Jin Yongxiang : You can feel the national emphasis on PPP has improved significantly , PPP modern governance in the country to address the local government debt , have an important role in the development of new urbanization , etc., has been placed great trust .

NBD: Compared with the government-led investment , PPP What are the benefits ?

Jin Yongxiang : PPP model implemented for the government to improve the efficiency , but also reduce the cost of investment , a lot of projects through bidding and competitive cost savings. These benefits come at a price , the first PPP operation must be standardized professional , second , PPP projects are competitive , while the sun is transparent. Third, the government 's regulatory capacity to be professional enough , these basic principles of PPP , I think it should be reflected.

NBD: The World Bank estimates that as of 2012 , China now has more than 1000 PPP projects around , but you far more than the estimated data .

Jin Yongxiang : 1000 certainly more than we do have 500 projects , we estimate that there are currently seven eight thousand PPP projects.

NBD: PPP to promote what is currently the biggest difficulty is ?

Jin Yongxiang : PPP model to promote the difficulties , there is no law and regulations are not the main , PPP projects are long-term contracts , and very professional, government operations must attach great importance to the matter , something to be treated as professional management, commercial awareness and government contracts spirit to get bit, which is much more important than the law .

NBD: PPP monopoly industries will become the promotion of resistance ?

Jin Yongxiang : PPP will directly affect the interests of the state-owned monopoly industries is the main voice of opposition to the PPP . However, this government 's determination to promote PPP great, I think there will be a great breakthrough .