NAN-F-45
Development
Beijing, June 6, 2017 (Xinhua/NAN) China’s Ministry of Finance on Tuesday released a guideline on Public-Private Partnerships (PPP) in agriculture to diversify funding for the industry.
Private investors will be asked to participate in areas including green agriculture, high-standard farmland development, modern industrial parks and logistics and trading platforms for farm produce, according to the guideline.
PPPs are collaborative projects between governments and private companies that are mainly funded and operated by the private sector.
China has explored funding infrastructure and public works through the PPP model since 2013 as concerns grow over local government debt.
The ministry asked local authorities to cautiously select projects, ensure fair competition and transparent information disclosure and to strengthen regulation in PPP projects.
According to the guideline, while local governments may hold shares in project companies, they should not interfere in operations and are forbidden from undertaking all the risk in any project.
The ministry also called for policy support such as expanding financing channels and ensuring land supply for PPPs.
Data from 2016 showed the number of signed PPP projects and total investment more than quadrupling from 2015, with private enterprises participating in more regions and sectors.
The strong momentum continued into the first quarter of 2017, which saw 28 per cent more PPP projects inked year on year. (Xinhua/NAN)
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Edited by Celine-Damilola Oyewole/Ismail Abdulaziz