(Yicai Global) May 19 -- Jiao Xiaoping, head of the Chinese finance ministry's public-private partnership (PPP) center, called for an end to government-backed PPP financing at yesterday's international China PPP Best Practices seminar in Beijing, which marked the opening of the Public-Private Partnership Governance Research Institute by the China Central University of Finance and Economics, National Business Daily reported.
A uniform PPP market has taken shape, Jiao said. A database of registered PPP projects shows they cover 19 industries, and that central and western regions have outperformed other parts of the country. More private investors got involved in plans as initiatives were advanced, and backing of in-progress schemes has totaled CNY2.9 trillion (USD420.7 billion)and has catalyzed new forms of public service businesses,such as intensive regional, waterway, town and park development projects.
A huge PPP market has emerged this year, so the government needs to keep debt exposure in check, promote sustainable progress and make risk prevention the top priority, said Jiao. Placing equal emphasis on innovation and risk control is of utmost importance, he said. The administration must find a way to put an end to government-backed financing carried out in the guise of PPP, legislation needs to be introduced to control admirative power, and relevant regulations should be developed following the law of market economy, he said.
Investments worth CNY14.6 trillion have been put into more than 12,000 PPP projects in industries ranging from energy to transport, as of March 2017.