Private investment welcomes the substantial PPP model is expected to break the "glass door"

“Innovative investment and financing mechanisms open the door to social investment, especially private capital, in more fields.” The State Council executive meeting on October 24 proposed to include “actively promoting the government and social capital cooperation (PPP) model”. Specific measures for social investment and private capital to participate equally in investment.

"At present, the pace of opening key domestic projects and major projects to private capital is accelerating." Experts interviewed by Securities Daily reported that although the central government actively promoted the encouragement of private enterprises to participate in various investments, the specific investment details of many projects are still unclear. After the various rules are perfected, the investment of private enterprises will usher in the golden period of development.

The State Council executive meeting decided to further introduce social capital to participate in hydropower and nuclear power projects; support basic telecommunications companies to introduce private strategic investors; accelerate the implementation of railway projects that introduce private capital; encourage private capital to invest in agricultural and water conservancy projects; and attract social capital Increase investment in education, medical care, pensions, physical fitness and cultural facilities.

In the face of multi-field open projects, private enterprises have mixed enthusiasm. How to guide private capital to participate in infrastructure construction and how private capital can be profitable in the PPP model has become the most concerned issue of private capital.

Experts pointed out that in addition to adopting the PPP model to attract private capital investment, local governments should also transform government functions. In addition to making private capital profitable, it is not allowed for the government to take all the risks, avoid the profits or losses of the participating parties, and ensure that the social capital profits are within a reasonable range.

"The PPP model is still a new thing in China, and it needs a corresponding position in the law. Its development is inseparable from the gradual rationalization of the relationship between the government and the market." Liu Shangxi, director of the Ministry of Finance's Institute of Fiscal Science, said that it is necessary to establish a clear future. The operational framework and cost-sharing mechanism clarify the areas of government and market management, such as how revenue is shared, how risks are shared, and agreements and rules are needed to determine. Only by allowing both parties to become equal partners can form a government and private The spirit of the two-way contract of capital.

At present, many local governments are actively pursuing the PPP model. Taking Anhui Province as an example, on September 29, the Anhui Provincial Government announced the first batch of 42 urban infrastructure PPP projects in the province, with a total investment of 70.9 billion yuan, involving water supply, sewage, garbage, urban transportation and ecological environment. class. It is reported that these 42 projects are selected by the Anhui Provincial Department of Housing and Construction from the province's urban infrastructure sector to use the PPP model construction project. This means that the PPP model is expected to completely break the "glass door" that private capital has encountered in previous investments.