15 July 2019
China Increases Oversight of Public-Private Partnership Projects
New guidelines relating to the management of public-private partnership (PPP) projects have been issued by the National Development and Reform Commission. In particular, the directive – the Circular on Strengthening PPP Project Investment and Construction Management In Accordance with Law – focuses on avoiding the problem of hidden local government debt and strengthening the management of investment in PPP projects and their subsequent implementation, as well as looking to make the related decision-making process more transparent and scientific.
The Circular also highlights that, as they are partly publicly-funded, the viability and desirability of all PPP projects must be reviewed and approved by central government. Furthermore, the drafting of detailed implementation proposals relating to PPP projects, including the preferred choice of private sector partners, may only commence once said government approval has been secured.
Source: National Development and Reform Commission