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PPP mode becomes the first choice for major transportation projects

Seetao 2022-08-01 11:22
  • The rapid development of the PPP model in the transportation sector has become the main force in China's PPP reform practice
  • The PPP model and government investment complement each other, which is conducive to the rapid improvement of government governance capabilities
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After years of practice in China, the PPP model has entered a new stage. On July 28, 2022, the Ministry of Transport held a press conference. The spokesperson of the Ministry of Transport, Shu Chi, said that in the first half of 2022, 1,675.8 billion yuan was invested in transportation fixed assets, a year-on-year increase of 6.7%. Among them, the investment in highways was 1,270.4 billion yuan, a year-on-year increase of 9.7%; the investment in waterways was 73.9 billion yuan, a year-on-year increase of 4.7%.

In addition to striving for transportation funds and special bonds, all localities have also actively used market-based financing to increase financial support for transportation infrastructure. At the same time, under the guidance of the PPP policies of the National Development and Reform Commission, the Ministry of Finance, the Ministry of Transportation and other departments, transportation departments and enterprises at all levels have also continued to explore, and the PPP model in the transportation field has achieved rapid development and has become a “practice” in the field of PPP reform in China. The main force", to accelerate the high-quality development of transportation infrastructure.

PPP model matures

The reporter recently learned from the PPP Center of the Ministry of Finance that in the first half of 2022, the scale of the PPP market will increase steadily. There were 279 new projects in the national government and social capital cooperation (PPP) comprehensive information platform management database, with an investment of 458.6 billion yuan. As of the end of June, there were 10,354 projects in the library with an investment of 16.5 trillion yuan; a total of 7,934 signed projects with an investment of 13.1 trillion yuan; a total of 5,280 construction projects with an investment of 8.7 trillion yuan, and an operating rate of 53.1%; A total of 1,988 service projects have been operated, with an investment of 2.8 trillion yuan.

Weng Yanzhen, director and associate researcher of the Financial and Financial (PPP) Research Office of the Scientific Research Institute of the Ministry of Transport, said in an interview with reporters that the latest data shows that the investment volume of a single transportation PPP project is large, and highways, national and provincial trunk lines, rural roads, There are many transportation projects such as ports, railways, airports, urban public transportation, and hub stations that implement the PPP model. In the outline of the national "14th Five-Year Plan", it is clearly stated that the government and social capital cooperation (PPP) should be promoted in a standardized and orderly manner. The transportation field, as the core field of PPP model application, presents a new development trend in the development of PPP.

Weng Yanzhen told this reporter that, first of all, the PPP model has gradually become the first choice for major strategic transportation projects and short-term projects. Expanding effective investment in transportation plays an important role in helping to stabilize growth, promote investment, and stabilize employment. In order to actively expand effective investment in transportation, it is necessary to speed up the construction of major national transportation projects and the strategic backbone channel project of "6 axes, 7 corridors and 8 channels", and accurately make up for the shortcomings of the national comprehensive three-dimensional transportation network. Adopting the PPP model and attracting the participation of social capital can effectively improve the integration degree of the whole life cycle of the project, and actively give full play to the advantages of the whole chain such as investment, financing, construction, management, maintenance and transportation of social capital.

Second, the transportation PPP market has shifted from focusing on quantity and speed to focusing on quality. Transportation departments at all levels pay more attention to and standardize the preliminary preparation and planning of projects, fully carry out market testing, etc., and constantly innovate the PPP implementation model to promote the high-quality development of transportation PPP projects.

Thirdly, a virtuous investment cycle of "investment, financing, management and retirement" has gradually formed. Models such as asset securitization (ABS) and real estate investment trusts (REITs) in the infrastructure sector provide a feasible path for social capital to revitalize stock assets and achieve effective exit.

The person in charge of the PPP Center of the Ministry of Finance told this reporter that there are many projects in the central and western regions in the national government-private partnership (PPP) comprehensive information platform management database. In the first half of 2022, the top five investment in new projects are 78.5 billion yuan in Gansu, 49.9 billion yuan in Liaoning, 42.9 billion yuan in Jiangxi, 32.2 billion yuan in Hebei, and 29.1 billion yuan in Shandong. The top five cumulative investment in projects in the library are: Yunnan 1.3 trillion yuan, Guizhou 1.3 trillion yuan, Sichuan 1.1 trillion yuan, Henan 1.1 trillion yuan, and Zhejiang 1.0 trillion yuan, accounting for 1.0 trillion yuan of the total investment in the management library. 35.3%.

According to the person in charge of the PPP Center of the Ministry of Finance, in the national government-private partnership (PPP) comprehensive information platform management database, the top five cumulative investment projects in the database are 5.9 trillion yuan in transportation and 4.6 trillion yuan in municipal engineering. , 2.0 trillion yuan for urban comprehensive development, 1.1 trillion yuan for ecological construction and environmental protection, and 398.2 billion yuan for water conservancy construction, accounting for 84.6% of the total investment in the management library. Keywords: infrastructure, infrastructure construction, domestic engineering news, planning and investment

The person in charge of the PPP Center of the Ministry of Finance said that over 70% of the "two new and one heavy" projects newly entered into the national government-private partnership (PPP) comprehensive information platform management database have invested more than 70%, including new infrastructure, new urbanization, transportation and water conservancy. Construction of major projects in three areas. PPP has also helped poverty alleviation counties to promote rural revitalization, and 539 poverty alleviation counties have explored the use of the PPP model to support poverty alleviation and rural revitalization. In addition, as of the end of June, among the 2,763 administrative districts with PPP projects in the library, the 2,729 administrative districts’ PPP project contract period did not exceed the 10% red line, and the overall financial affordability index value was within the safe range. Among them, 2,035 administrative regions were lower than the early warning line of 7%, accounting for 73.7%, and 1,574 administrative regions were lower than 5%, accounting for 57.0%. Editor / Xu Shengpeng