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China to Regulate Implementation of New PPP Mechanism
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Chinese
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Category：Legislative Updates
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Subject：Compliance management
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Keywords：social capital; market mechanism; private investment
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Source：Pkulaw
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Publish Date：11-16-2023
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Recently, the National Development and Reform Commission (NDRC) and the Ministry of Finance (MOF) issued the Guidelines for Regulating the Implementation of the New Mechanism of Public-Private Partnerships (PPP).
The document proposes to regulate and implement the new mechanism of PPP. This requires fully leveraging the role of market mechanisms and broadening the space for private investment. Meanwhile, it vows to resolutely curb the growth of hidden debts of local governments, and improve the construction and operation of infrastructure and public utility projects, so as to ensure well-regulated PPP development and transparency in operation.
The document also stipulates that user-pay projects should be prioritized and all PPP projects should adopt franchising models. It emphasizes that the focus should be on key areas, prioritizing the participation of private enterprises and clarifying the division of management responsibilities to prudently promote the implementation of the new mechanism.
In addition, the document specifies the List of New Projects (Including Expansion and Renovation) for Franchising (2023 version) in support of the participation of private enterprises.
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