Outlook for Public-Private Partnerships in China in 2019

The PPP model was introduced to China as an effective vehicle for infrastructure financing and was strongly promoted as an alternative procurement model to help alleviate the financial burden on local governments and improve the delivery of public services. From 2014 to 2018, the number of PPP projects reached 9,066, with a total investment accounting for more than 1.3 trillion RMB. Given the background of deepening investment and financing reform and preventing major risks, further questions have been raised regarding the whole process of PPP model. Can PPPs be executed as an efficient tool for infrastructure financing instead of government financing? How can state-owned enterprises (SOEs) participate in PPP projects in China? Are the policies/regulations specific, consistent and communicated enough for encouraging PPP development? Are there any potential investment opportunities for international investors? Are there any predictable changes for PPPs in “One Belt One Road” countries following the second Belt and Road Forum in April?

Bridata, the Chinese company focusing on infrastructure financing data, will release its new report ‘Outlook of PPP in China 2019’ which presents a full picture of PPP development in China by summarizing the policies, transactions, orientation and development context of infrastructure and public service investment and financing in China. In addition, the report uses big data analysis and data visualization methods to statistically analyse the issuance of local government bonds and regional debt in China. The regional financial sustainability prediction model and the urban PPP investment potential index are constructed to fully reflect the regional economic status and potential investment space. China’s PPP market is open to all international investors but only a few foreign players in transactional involvement indicate some hidden barriers. This issue will also be addressed in the report.

Keynote Speakers:

Guangrui Xiao, CEO of Bridata and former ADB PPP Specialist
Yingzhe Xia, Director, China PPP Center, MOF
Kaimeng Li, Director General of Research Center, China International Engineering Consulting Corporation, and vice Chairman of the Bureau of the UNECE Working Party on PPP

Panel:

Guangrui Xiao, CEO, Bridata (Moderator)
Bernard Aritua, Senior Infrastructure Specialist, World Bank
Melissa Tang, First Vice President, Global Structured Finance, SMBC
Ada Li, Vice President – Senior Credit Officer, Moody’s
Mark Hu, Partner, Pinsent Masons
Xiaolu Dou, Research Director, Bridata

The slides and summary of our Beijing event are available for members to download below.