(Yicai Global) Dec. 1 -- China will continue to open all infrastructure sectors, except those prohibited by national laws and regulations, to private investment, the National Development and Reform Commission (NDRC) said yesterday.
Private investors’ participation in Public-Private Partnership (PPP) projects should not be restricted, state-run Xinhua news agency quoted the NDRC as saying.
Borrowing money illegally under the guise of the PPP model is strictly prohibited, and China should prevent local governments from concealing debt risks, per a document the NDRC released.
The government should encourage private investors to back suitable PPP projects with great commercial potential and a moderate investment scale, and improve their efficiency, the NDRC said.
The government shall support private enterprises pursuing large-scale and long-term projects as well as those involving complicated engineering to cooperate with each other or team up with state-owned companies, foreign-invested firms or other enterprises by forming bidding consortia and establishing mixed ownership companies.
The government should encourage private investors to form or participate in investment funds and pool decentralized funds to let professional institutions manage them, the NDRC said.
The NDRC document requires the government to strengthen the credit system for cooperation between government and private investors and fulfil its obligations. Authorities will blacklist and punish dishonest entities.Keywords: PPP, NDRC, Private Capital