State Council Takes Initiatives to Promote PPP Mechanism (May 2015)
source: date:2015-06-01 author:
The General Office of the State Council has forwarded the Guiding Opinions of the Ministry of Finance, National Development and Reform Commission and People's Bank of China on Promoting the Public-Private-Partnership (PPP) Mechanism in the Public Services (the "Opinions").
The Opinions indicate that the Government encourages the adoption of the public-private-partnership (PPP) mechanism for public services including energy, transport, water resource, environmental protection, agriculture, forestry, technology, affordable housing projects, medical treatment, healthcare, retirement, education, and culture, to attract social capital participation. The Government will take initiatives to make use of modes such as transfer-operation-transfer (TOT) and rehabilitate-operate-transfer (ROT), whereby it will transfer the stock public service projects on the financing platform to the PPP projects, attract private capitals to participate in the rehabilitation and operation, and with the consent of creditors, transfer the public debts to non-public debts. In addition, the Opinions encourage eligible project operation entities to raise capitals through the issue of corporate bonds, enterprise bonds, middle-term notes, and directional instruments in the capital market.