PPP Promotes Sustainable Development · Regulatory Framework 1st Batch 18 projects 7.3 billion USD...
Transcript of PPP Promotes Sustainable Development · Regulatory Framework 1st Batch 18 projects 7.3 billion USD...
-
PPP Promotes
Sustainable Development
Jiao XiaopingChina Public Private Partnerships Center
Ministry of Finance, People’s Republic of ChinaSeptember, 2019
-
China's PPP Practice
Macro-LevelModernization of national governance system and governance capacity
Micro-Level(Value For Money)
• Risk Sharing• Full Competition• Fiscal Affordability• Transparency• Whole life-cycle management• Performance-based payment
Meso-Level
• Reform of administrative system• Reform of fiscal system• Reform of investment and
financing system
PPP in China = Governance + Project Management
-
Value for Money
Government, Market, Community
China's PPP Practice
Regulatory
Framework
Capacity
Building
Demonstration
Projects
-
Regulatory Framework
Law
• Budget Law (amended)• Government
Procurement Act (amended) & its Enforcement Regulations
• PPP Law (being formulated)
Policy
• Guide on Provincial Government Debt Management
• Guide on Promoting PPP in Public Service
• Notice on Promoting PPP
• Notice on PPP Financial Management
Guideline• PPP Operating
Guidelines• PPP Contract Guidelines• PPP Project Procurement
Guidelines• PPP VFM Assessment
Guidelines• PPP Fiscal Affordability
Assessment Guidelines
Contract• PPP Contract Guidelines• PPP Contract Case Study• Standard PPP Contracts
For Various Sectors (being formulated)
Standard• PPP Project
Identification Criteria (Economy, Techniques, Finance, etc.)
• Output Criteria• Performance –based
Payment Criteria
China's PPP Practice
-
China's PPP Practice
• Optimize feasibility study and project structure.
• Incorporate maket responses to come up with a optimal implementation plan.
Value For Money Evaluation• Eveluate whether a PPP is likely to offer better value for the public than
traditional public procurement.
Business Case
• Set a 10% cap: local government spending on all PPP projects within its jurisdiction must not exceed 10% of general public budget expenditure.
Fiscal Affordability Assessment
• Establish the national online monitoring system on fiscal affordability of 2,584 cities/counties. The number of cities/counties exceeding the 10% cap decrease from 253 to 27 after the application of the monitoring system.
-
Regulatory FrameworkChina's PPP Practice
Institution transformation: build a rule-of-law, service-oriented, and transparent government
Led by the Ministry of Finance, cooperate with other line ministries
Establish PPP Centers/Units at national, provincial, municipal level
Build up PPP Integrated Information Platform to improve information disclosure
Involve PPP consulting agencies
Improve corporate social responsibility
-
Regulatory Framework
1st Batch18 projects
7.3 billion USD
2nd Batch 157 projects
64.6 billion USD
3rd Batch 421 projects
127.2 billion USD
4th Batch382 projects
100.5 billion USD
Demonstration Projects Case Studies
l Carried out four batches of demonstration projects from 2014 to 2017.l 978 projects, total investment 295.3 billion USD.l 908 reached the commercial close (92.8%).
20142015
2016
2017
China's PPP Practice
-
8
Municipal Engineering, 3,618,
40%
Transportation, 1,291, 14%
Environmental Protection, 896,
10%
Urban Development, 583,
6%
Education, 430, 5%
Water, 380, 4%
Tourism, 319, 4%
Healthcare, 263, 3%
Government Infrastructure, 198,
2%
Culture, 194, 2%
Affordable Housing, 154, 2%
Others, 138, 2%
Technology, 131, 1%
Energy, 119, 1%Sports, 118, 1%
Elderly Care, 104, 1%
Agriculture, 76, 1%Forestry, 57, 1%Social Security, 35,
0%
The Largest PPP Market
Total Projects: 9,104 preparation, procurement and implementation
Total Investment: 1.92 trillion USD
u 19 Sectorsu 5,896 projects reach the commercial close total investment 1.26 trillion USD
Impacts
• Increase public service supply
• Improve efficiency
• Optimize supply chain
• Create innovative models (EOD etc.)
-
• World Bank: Procuring Infrastructure PPPs 2018 assesses the regulatory frameworks and recognized good practices that
govern PPP procurement across 135 economies.
• In the assessment, the score for China’s PPP Procurement, Contract Management and Preparation is higher than the average
of high-income group and upper-middle-income groups.
China's PPP Market: Global AssessmentChina’s PPP Institution and Practices ranks upper-middle globally
8276
6154
77
5863
666457
48
6358
52
44
535447
39
47
0
10
20
30
40
50
60
70
80
90
P P P P R O C U R E M E N T C O N T R A C T M A N A G E M E N T P P P P R E P A R A T I O N U N S O L I C I T E D P R O P O S A L …
China High-income Upper-middle-income Lower-middle-income Low-income
-
•Build a community with a shared future for mankind.
•Uphold the principle of extensive consultation, joint contribution and shared benefits.
•Support the implementation of the UN 2030 Agenda for Sustainable Development.
--- President Xi Jinping
China's PPP Practice
• New International Governance
• Multilateral Cooperation
• Bilateral Exchange
-
Knowledge
Share PPP & Infrastructure policies and good practices to improve capacity building.
Project Exchage project information to enhance transparency and facil icate project transcations.
Investment
Bridge the investment from private sector to improve infrastructre financing.
The UNESCAP's Infrastructure Financing and PPP Network
China's PPP Practice
-
Mobilize resources from three aspects: government, private sector and community.
Leverage two markets to facilate infrastructure development: domestic financing and international financing.
Use PPP as an effective tool for the UN 2030 SDGs.
PPP promotes UN 2030 SDGs
-
Case I
GUIYANG Nanming River Water Environment Treatment Project
-
Construction
Operation
•7 new sewage treatment plants (4,450,000 ton/day)•A new sludge disposal center (500 ton/day)•Sewage interception gutter renovation(52183 m in length, 40 exhaust ports transform)•Channel cleanout(1,136,600 m3)•Eco-restoration project(ecology gravel bed 45000m2,wetland 65000m2,aquatic plant 2500m2,4 set of permeable dike )•Construct river information supervision system •Clean 25 drainage basins of Huaxi River
BOT+ TOT
ReturnMechanismViability Gap Funding
sewage treatment income+government-pay
ContractPeriod
Sewage and sludge operation period 30 years River comprehensive treatment service period 10 years
Investment
401 million USD Type
+ Brown Project + Green project
Procurement: Open Tendering
-
35%
Planned investment : 625 million USDActual investment:404 million USD
221 million USD less
Output Comparison
u Comprehensive treatment
u Energy saving
u Productivity improvement
u Quality service
BEFORE AFTER
Environment Protection
-
Case II
YUNNAN Yuanmou Efficient Water-saving Project
-
Case II YUNNAN Yuanmou Efficient Water-saving Project
Crop Growth in the Project Area
Project Investment 300 Million RMB
75,992,000 m2
Project Area
Project Covers 110 Villiages across 4 towns
Project includes • Two multi-level water intakes• 32.33km main water conveyance pipeline• 156.58km branch main water conveyance pipeline• 266.2 km branch main water distribution pipeline• 345.33 km branch water distribution pipeline
Project Benefits
• Water usage per Mu (1 Mu = 666.6 m2) decrease from 1259 to 350 RMB
• Farmers's income increase by 5000 RMB/Mu• Water saved by 21.58 million m3/year
Poverty Reduction
-
Case III
GUIZHOU Wudang District Educational Facilities, Equipment and Logistics Services Project
-
Case III GUIZHOU Wudang District Educational Facilities, Equipment and Logistics Services Project
Wudang District Zhenxin Kindergardern
3 Sub-projects: Wudang nine-year school (11443.28 m2) Wudang Shuitian middle-school(66667.19 m2) Wudang Zhenxin kindergardern(3364.68 m2)
Investment: 325.46 million RMBProject duration: 10 years
• Improve learning conditions of local children: 720 infants, 810 pupils, 1,800 middle-school students and 900 high-school students.
• Raise the standard of running a school facility in the suburb rural areas.
• Ease the tension between suburb and downtown residents regarding enrollment.
• Increase the housing price of the surrounding areas.
Project Benefits Equal Access to Education
-
Case IV
GU'AN Industrial Park Project
-
Case IV GU'AN Industrial Park Project
Poverty Alleviation
• Helps Gu’an transform itself from an agricultural society to a modernized industrial city.
• Increase fiscal revenue by hundred times. • Introduce over 600 companies and 30 +
universites and research institutions.
GU'AN Industrial Park UN Economic Commission for Europe Listed Gu'An in case studies of PPP Smart and Sustainable Cities.
Investment: 8.3 Billion RMBType: BOT Duration: 30 yearsContents: land arrangement, infrastructure development, public facilities, industry development, and urban operation.
Project Benefits Economic Growth
-
THANKS
Website: http://www.cpppc.org/en/index.jhtml Wechat Account:道PPPEmail: [email protected] [email protected]
Official Website Official WeChat Account