Quarterly Report on the Project Database of the National PPP Integrated Information Platform (No.9)

2018-06-08

Quarterly Report on the Project Database of the National PPP Integrated Information Platform (No.9)


Executive Summary


PPP has achieved greatly development both in depth and breadth as the four years’ PPP reform. 2017 is the year for regulating the implementation of PPP projects. While correcting the irregular behavior, the PPP reform adheres to the new development idea, strives for stability, pushes forward the supply-side structural reform, mitigates the financial and financial risks, supports poverty alleviation, develops pollution prevention, and implements the “five-in-one” and “four comprehensive” strategic layout.


The following is a summary of the 2017 annual report on the Project Database of China PPP Integrated Information Platform :


PPP mode is widely used in various regions and sectors, and the number and investment value of PPP projects continue to grow. As of the end of December 2017, there were 14,424 projects in the management database of the National Public-Private Partnerships (PPP) Integrated Information Platform, with an investment of RMB 18.2 trillion yuan, Compared with the data in the same statistic scope as that in the end of last year (hereinafter referred to as the ring growth), net increase of project is 3,164 with an investment of RMB 4700 billion, with year-on-year growth of 28.1% and 34.8% respectively. 7,137 of these projects entries in management database, and 7,287 entries in pre-pipeline database.


To optimize the management of the Project Database of National PPP Integrated Information Platform, the PPP project database was divided into management database and pre-pipeline database in October 2017. The management database includes the PPP projects that are in the preparation, procurement, implementation and transfer phases with approved Value for Money evaluation and fiscal affordability assessment. As of the end of December 2017, there are 7,137 projects in the management database, with investment of RMB 10.8 trillion, covering 31 provinces (autonomous regions, municipalities) and Xinjiang Corps except Tianjin and Tibet and 19 sectors.  Compared with the data in the same statistic scope as that in the end of last quarter (hereinafter referred to as the ring growth), net increase of project is 359 with an investment of RMB 637.6 billion; compared with the data in the same statistic scope as that in the end of last year, net increase of project is 2,864 with an investment of RMB 4 trillion. 2,729 projects (commercial closed) in implementation and transfer stages (currently none in the transfer stage), an investment of RMB 4.6 trillion, implying an commercial closed rate (i.e. the rate of the sum of commercial closed projects to the sum of projects in management database) of 38.2%, covering 30 provinces (autonomous regions, municipalities) and Xinjiang Corps except Tianjin and Tibet and 19 sectors. The constructing projects increased 245 compared with the data in the same statistic scope as that in the end of last quarter, counting 42.5% of the commercial closed projects. In terms of return mechanism, there are 1,323 user-pay projects with an investment of RMB 1.6 trillion, sharing 18.5% and 14.7% of management database respectively; 2,884 government-pay projects with an investment of RMB 3.3 trillion, sharing 40.4% and 30.6%; 2,930 government-and-user-pay projects with an investment of RMB 5.9 trillion, sharing 41.1% and 54.7%. 


PPP model speeds up the infrastructure construction and promotes the local economy transformation development and the supply-side structural reform. In terms of regional distribution, Shandong (including Qingdao city), He’nan and Hu’nan ranked top three by number of project entries, sharing 26.1% of management database; Guizhou, Hunan, and He’nan ranked top three by amount of investment, sharing 22.8% of management database; Shandong (including Qingdao city), Xinjiang and Anhui ranked top three by number of commercial closed projects, sharing 29.3% of total commercial closed projects; Yunnan, Shandong (including Qingdao city), and Guizhou ranked top three by investment amount of commercial closed project, sharing 24.5% of management database. In terms of industrial distribution, the PPP projects covers 19 first-tier sectors. Municipal works, transportation, ecological construction and environmental protection ranked top three by number of project entries, sharing 59.2% of management database; municipal works, transportation and integrated urban development ranked top three by amount of investment, sharing 71.6% of of management database; municipal works, transportation, ecological construction and environmental protection ranked top three by number of commercial closed projects, sharing 63.5% of total commercial closed projects; municipal works, transportation and integrated urban development ranked top three by investment amount of commercial closed projects, sharing 74.3% of investment amount of commercial closed projects. In terms of the fixed assets investments, investment amount of commercial closed projects took 3.8% of the corresponding period investment amount of fixed assets in 2017, among them, the proportion of the eastern region accounted for 3.2%, the central region 3.2%, the western region 4.5%, northeast region 8.3%.


PPP model improves the quality and efficiency of public service supply and satisfies the people's yearning for a better life. In terms of basic public services in culture, sports, healthcare, senior care, education and tourism, there are 1,350 projects with investment of RMB 1.1 trillion, sharing 18.9% and 10.4% of management database respectively, compared to the end of last year, it witnesses an increase of 63.2% and 69.4%. education, tourism and healthcare ranked top three by number of project entries, respectively 343 projects, 310 projects and 261 projects; tourism, education and healthcare ranked top three by investment amount, respectively RMB 426.1 billion in tourism, RMB 175.3 billion in education, and RMB 159.9 billion in health care. In terms of green and low-carbon projects, there are total 3,979 projects with investment of RMB 4.1 trillion. Among them, there are 1,556 commercial closed projects with investment of RMB 1.9 trillion; 764 net increase in the ring growth with investment of RMB 1 trillion. 


Nearly half of poor counties use the PPP model to carry out poverty alleviation projects, using market forces to promote long-term poverty alleviation. 394 of the 832 poor counties in the country (47.4%) have explored to use PPP model to promote poverty alleviation, and 1,272 projects have been included into management database, with investment of RMB 1.1 trillion. Among them, there are 350 commercial closed projects with investment of RMB 284.7 billion. In terms of provinces, Guizhou, Inner Mongolia and Hu’nan ranked the top three by number of PPP projects, respectively, 290, 143 and 124 projects; An’hui, Inner Mongolia and Hu’nan, ranked the top three by the proportion of the number of the poor counties that having PPP projects to the local number of the poor counties, 100%, 87.1%, and 80.0% respectively.


Over 80% of the national PPP demonstration project have reached commercial close. Theses projects distributed in widely area industries and played an outstanding demonstration and leading role. By the end of December, the national demonstration project amounted to 697, with a cumulative investment of RMB 1.8 trillion, covering 30 provinces (autonomous regions, municipalities) and Xinjiang Corps except Tibet and 18 sectors. Among them, there are 597 commercial closed projects with investment of RMB 1.5 trillion, covering 30 provinces (Autonomous Region, the municipality) and Xinjiang Corps except Tibet and 18 sectors, counting 85.7% of the total commercial closed projects and continuing to maintain growth trend. Among them, the first batch of the 22 demonstration projects have all reached commercial close since the end of 2016, and the second batch of 162 demonstration projects have all reached commercial close since the end of March 2017; 413 out of the 513 the third batch demonstration projects have reached commercial close, and the commercial closed rate is 80.5%. In terms of regional distribution, Henan, Yunnan and Shandong (including Qingdao city) ranked top three by commercial closed projects, sharing 24.8% of commercial closed demonstration projects. In terms of industrial distribution, municipal works, transportation, ecological construction and environmental protection ranked top three by the number of commercial closed projects, sharing 64% of total commercial closed demonstration projects. In terms of private enterprise participation, there are 981 signed private sectors for 597 commercial closed demonstration projects, including 34.7% of private enterprises, and private enterprise participated in 280 demonstration projects, accounting for 46.9%. 271 projects have been started construction, accounting for 45.4% of the commercial closed demonstration projects. Shandong (including Qingdao city), Anhui and Yunnan ranked top three by number of constructing projects, 33, 32 and 23 respectively. 


Active application and promotion of “Internet+” and deepen the promotion of PPP reform. As of the end of December, PPP Chinese and English official websites saw respectively 6.18 million times and 1.92 million visits since launch, the ring growth of 1.25 million and 0.21 million respectively; “China PPP Map”mobile client (APP) was downloaded for over 43,000 times, the ring growth of 3,800 times; “道PPP” WeChat official account was followed by 129,000 people, the ring growth of 10,000.


Body text


In accordance with requirements of the Notice on Standardizing the Operation of PPP Integrated Information Platform (CJ [2015] No. 166), and Notice on Standardizing the Operation of the Management Database of the PPP Integrated Information Platform (CJ [2017] No. 92), as of the end of December 2017, projects reviewed and included into project database totaled 14,424 with a total investment of RMB 18.2 trillion; among them, 7,137 projects in preparation, procurement, implementation and transfer stages have completed the value-for-money evaluation and the financial affordability assessment, and have been included in the management database, with investment of RMB 10.8 trillion, covering 31 provinces (autonomous regions, municipalities) and Xinjiang Corps and 19 industrial sectors. There are 2,729 commercial closed projects in implementation and transfer stages (currently 0 in the transfer stage) in management database, with investment of RMB 4.6 trillion; the projects have been started construction account for 45.4% of the commercial closed demonstration projects. There are 697 national demonstration projects. Hereinafter, the quarter ring growth refers the data in the same statistic scope as that in the end of last quarter, and the annual ring growth refers the data in the same statistic scope as that in the end of last year.


The report is set out as follows:


I. National demonstration projects


As of the end of December, national demonstration projects totaled 697 with a total investment of RMB 1.8 trillion, and all of them are in the management database. In particular, the first batch in 2014 totaled 22 (30 at first, 8 of which were subsequently excluded) with a total investment of RMB 71.4 billion; the second batch in 2015 totaled 162 (206 at first, 44 of which were subsequently excluded) with a total investment of RMB 486.1 billion; the third batch in 2016 totaled 513 (516 at first, 3 of which were subsequently excluded) with a total investment of RMB 1195.7 billion. 


(I) Accelerated implementation


PPP projects include identification, preparation, procurement, implementation and transfer stages from the perspective of whole life cycle. The project commercial closed rate refers to the ratio between the sum of the numbers of the projects in the implementation and transfer stages and the sum of the numbers of the projects in the preparation, procurement, implementation and transfer stages. There are currently no projects in transfer stage.


Demonstration projects were properly commercial closed as a whole with the number and investment in preparation and procurement stages gradually decreasing month by month 


Please see the Figure 1-1-1, 1-1-2 and 1-1-3 for the number of demonstration projects, investment amount and commercial close rate in each stage from the end of December 2016 to the end of December 2017. During the year 2017, the demonstration projects were generally well promoted, the number of demonstration projects and investment in the preparation and procurement stages decreased by month and the number, and investment of commercial closed projects gradually increasing month by month. As of the end of December, commercial closed projects totaled 597 with an investment of RMB 1.5303 trillion and commercial closed rate of 85.7%; compared with the quarter ring growth, a ring growth of 25 commercial closed projects with an investment of RMB 26.5 billion and 3.6 ppts growth in commercial closed rate; an increase of 234 commercial closed projects with an investment of RMB 592.3 billion and 35.9 ppts in commercial closed rate compared with the data at the end of 2016.


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Figure 1-1-1 Number of demonstration projects in each stage (Nr.)



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Figure 1-1-2 Investment of demonstration projects in each stage (in RMB 100 million)


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Figure 1-1-3 Trend of changes in overall commercial closed rate of demonstration projects


(II) Accelerated implementation


The first batch of the 22 demonstration projects have all reached commercial close since the end of 2016, and the second batch of 162 demonstration projects have all reached commercial close since the end of March 2017; 413 of the third batch demonstration projects have reached commercial close, and 15 of them reached commercial close within December 2017, and the commercial closed rate is 80.5%. See Figure 1-2 for the commercial closed rate of each batch of the national demonstration projects.


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Figure 1-2 Commercial closed rates of three batches of demonstration projects as of the end of December


(III) Municipal works continued to take the lead


The Project Database includes a total of 19 primary industries such as energy, transportation, water conservancy, ecological construction and environmental protection, municipal works, integrated urban development, agriculture, forestry, science and technology, affordable housing, tourism, healthcare, senior care, education, culture, sports, social security, government infrastructure and others. The demonstration projects cover the remaining 18 sectors except for government infrastructure. As of the end of December, the commercial closed projects have covered 18 industries. There are 267 Municipal works projects, accounting for 44.7% of total commercial closed demonstration projects; there were 62 transportation projects, accounting for 10.4% of total commercial closed demonstration projects; there were 53 ecological construction and environmental protection projects, accounting for 8.9% of total commercial closed demonstration projects, the above three sectors implied an increase of 11, 1 and 12 projects in t he quarter ring growth respectively, and 87, 25 and 23 projects in the annual ring growth respectively. There were 215 remaining projects, accounting for 36% of total commercial closed demonstration projects. See Figure1-3-1 for breakdown of demonstration projects in different sectors as of the end of December by industry (Nr.) The number of demonstration projects in each sector and the number of commercial closed projects is shown in Figure 1-3-2.


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Figure1-3-1 Breakdown of demonstration projects by industry (Nr.) as of the end of December 


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Figure 1-3-2 Comparison of Numbers of demonstration projects and commercial closed projects in different sectors as of the end of Decembe


(IV) Henan, Yunnan and Shandong ranked top three by the number of commercial closed demonstration projects


According to regional statistics, Henan ranked the first across China with 53 national demonstration projects entered the implementation stage, followed by Yunnan with 49, Shandong with 46 (including Qingdao city), Anhui with 38, Hebei with 38, Hubei with 28, Fujian with 28 (including of Xiamen), Inner Mongolia with 27, Hunan with 27, the remaining provinces are less than 25. The number of commercial closed projects of the above 9 provinces, sharing 55.9% of total commercial closed demonstration projects. See Figure 1-4 for the comparison of the number of demonstration projects and the number of commercial closed of different province.


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Figure 1-4 Comparison of Numbers of demonstration projects and commercial closed projects in different provinces as of the end of December


(V) Shandong, Anhui take the lead on the number of commercial closed demonstration projects started construction


As of the end of December, 271 commercial closed demonstration projects have been started, accounting for 45.4% of total. Shandong (including Qingdao), Anhui and Yunnan ranked the top three by the number of commercial closed demonstration projects started construction, the number are 33, 32 and 23 respectively, sharing 71.7%, 84.2% and 46.9% of the number of the commercial closed demonstration projects. The total number of commercial closed demonstration projects in these three provinces accounted for 32.5% of the national commercial closed demonstration projects.


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Figure 1-5 Breakdown of started demonstration projects by provinces and percentage of commercial closed projects as of the end of December


II. Projects in management database


To optimize the management of the Project Database of National PPP Integrated Information Platform, the PPP project database was divided into management database and pre-pipeline database in October 2017. The management database includes the PPP projects that are in the preparation, procurement, implementation and transfer phases with approved Value for Money evaluation and fiscal affordability assessment. As of the end of December 2017, there are 7,137 projects in the management database, with investment of RMB 10.8 trillion. Compared with the data in the same statistic scope as that in the end of December 2016, net increase of project is 2,864 with an investment of RMB 4 trillion. Among them, 2,729 projects have reached commercial closed (i.e. in implementation), with an investment of RMB 4.6 trillion. Compared with the date in the same statistic scope as that in the end of September 2017, the net increase of project is 341 with an investment of RMB 512.6 billion yuan. Annual ring growth of the commercial closed projects are 1,378 with and investment of RMB 2.4 trillion.


(I) The investment amount steadily increased, and the new projects accounted for a high proportion


Please see Figure 2-1-1 for the number of projects and the number of projects in each phase in the management database, and Figure 2-1-2 for investment amount from January 2016 to the end of December 2017. The data showed a monthly growth trend, average new project entries in each month reached 245 with investments totaling RMB 364.3 billion yuan.


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Figure 2-1-1 Monthly changes in project entries of different stage in management database (Nr.) 


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Figure 2-1-2 Monthly changes in investment amounts of project entries in management database by stage (in RMB 1 trillion) 


As at the end of December, 7,137 projects in the management database, among them, there are 6,233 green field projects, 475 brown field projects and 429 mixed projects, sharing 87.3%, 6.7% and 6% of the projects in the management database respectively, with an investment of RMB 9.8 trillion, RMB 400 billion and RMB 500 billion, accounting for 91.3%, 4.1% and 4.6%, as shown in Figure 2-1-3 and 2-1-4.



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Figure 2-1-3 Numbers of project entries in management database by the end of December (Nr.)   


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Figure 2-1-4 Investment of project entries in management database by the end of December (in RMB 100 million)


(II) High regional concentration


As at the end of December, by number of project entries, Shandong (including Qingdao) (692), Henan (646) and Inner Mongolia (528) ranked the top three in the list and accounted for 26.1% of total. By investment amounts of project entries, Guizhou (RMB 845.3 billion), Hunan (RMB 825.1 billion), and Henan (RMB 787 billion) ranked the top three provinces and accounted for 22.8% of total. Breakdowns of project entries in management database and investment amount of all regions by stage by end of September and December are shown in Figure 2-2-1 and Figure 2-2-2. 


Compared with the data in the same statistic scope as that in the end of last quarter, by net increase in project entries, Hunan (55), Guangdong including Shenzhen City (48) and Guizhou (46) ranked the top three and accounted for 41.5% of total net increased projects; by net investment increase, Zhejiang including Ningbo city (RMB 110.5 billion), Hunan (RMB 88.6 billion) and Hubei (RMB 82.7 billion) ranked the top three and accounted for 44.2% of total net investment increased.


Compared with the previous year, by net increase in project entries, Hunan (262), Inner Mongolia (232), and Henan(222) ranked the top three in the list and accounted for 25% of total; by net investment increase, Xinjiang (RMB 430 billion), Hunan (RMB 387.7 billion), and Guizhou (RMB 349.6 billion) ranked the top three provinces and accounted for 29.4% of total.


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Figure 2-2-1 Comparison of project entries in management database by regions at the end of September and December (Nr.) 



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Figure 2-2-2 Comparison of the investment of projects in management database by regions 

at the end of September and December (in RMB 100 million) 


(III) High industry concentration


As at the end of December, PPP projects and investment amounts in the management database by industry are shown in Figure 2-3-1 and Figure 2-3-2. Among them, municipal works, transportation and ecological construction and environmental protection ranked the top three by number of projects and accounted for 59.2% of total; municipal works, transportation, and integrated urban development ranked top three and accounted for 71.6% of total investments.


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Figure 2-3-1 Breakdown of projects in management database by industry as of the end of December


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Figure 2-3-2 Breakdown of investment amounts of projects in management database by industry 

as of the end of December (in RMB 100 million) 



Compared with the previous quarter, by net increase in project entries, municipal works (117), transportation (77) and ecological construction and environmental protection (62) ranked top three and accounted for 71.3% of total net increase; by net increase in investment amount of project entries, municipal works (RMB 175.3 billion), transportation (RMB 151.8 billion) and integrated urban development (RMB 114.4 billion) ranked top three and accounted for 69.2% of total net investment increase, as shown in Figure 2-3-4.


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Figure 2-3-3 Net increase of projects in management database from September to December (Nr.)


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Figure 2-3-4 Net increase of investment in management database from September to December (in RMB 100 million)



Compared with the previous year, by net increase in project entries, municipal works (1,065), transportation (412) and ecological construction and environmental protection (268) made top three and accounted for 60.9% of total net increase; by net increase in investment amount of project entries, municipal works (RMB 1.1103 trillion), transportation (RMB 1.0729 trillion) and integrated urban development (RMB 422.4 billion) ranked top three and accounted for 65.7% of total net investment increase.


(IV) the commercial closed projects increased substantially


The number of projects in different stage in management database by end of September and December are shown in Figure 2-2-1 and Figure 2-4-1. As of the end of December, there are 2,729 commercial closed projects (i.e. in implementation stage). Compared to the end of last quarter, the net increased commercial closed projects are 341, and compared to the end of previous year, the net increased commercial closed projects are 1,378. The commercial closed rate is 38.2%, with quarter-on-quarter growth of 3%, and year-on-year growth of 6.6%. Currently there is no project in the transfer stage.


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Figure 2-4-1 Number of projects in preparation, procurement and implementation stage in management database at the end of September and the end of December (Nr.)



Breakdown of commercial closed projects by region. Shandong (including Qingdao) (349) ranked the top, accounting for 12.8% of total. Xinjiang (232) ranked the second place, accounting for 8.5% of total. Anhui (193) ranked the third place and accounted for 7.1% of total. As at the end of December, by net increase in commercial closed projects in the current quarter, Fujian including Xiamen city(46), Shandong (including Qingdao) (28), and Hebei (26) ranked top three and accounted for 29.3% of total. 


Breakdown of investment amount of commercial closed projects by region. Yunnan (RMB 423.5 billion), Shandong (including Qingdao) (RMB 401.2 billion), and Guizhou (RMB 305.8 billion) ranked the top three provinces and accounted for 24.5% of total investments of commercial closed projects. By net investment increase of commercial closed projects in the quarter ring growth, Jilin (RMB 116.3 billion), Fujian (including Xiamen) (RMB 70 billion) and Jiangsu (RMB 56.9 billion) ranked top three and accounted for 47.4% of net investment increase in the current quarter. The number of commercial closed projects and investment in various provinces are shown in Figure 2-4-2, 2-4-3.


Commercial closed rate. There are 2 PPP projects in Shanghai and ranked top in terms of commercial closed rate, the commercial closed rate is 100%; Anhui (193/259) ranked the second place with 74.5% commercial close rate; and Beijing (31/49) ranked the third place with 63.3% commercial close rate.


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Figure 2-4-2 Number of commercial closed projects and commercial closed rate by regions at the end of December 


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Figure 2-4-3 Investment of commercial closed projects by regions at the end of December 


Breakdown of commercial closed projects by industry. By number of commercial closed projects, municipal works (1,152), transportation (369) and ecological construction and environmental protection (212) ranked top three and accounted for 63.5% of total commercial closed projects. By investment in commercial closed projects, municipal works (RMB 1,694.9 billion), transportation (RMB 1,228.2 billion), and integrated urban development (RMB 496.9 billion) ranked top three and accounted for 74.3% of total investment. By the end of December, the number of commercial closed projects and investment in different industry distribution are shown in Figure 2-4-4 and Figure 2-4-5.


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Figure 2-4-4 Number of commercial closed projects by industries at the end of December (Nr.)


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Figure 2-4-5 Investment of commercial closed projects by industries at the end of December (in RMB 100 million)


By net increase in commercial closed projects in the quarter ring growth, top three industries were municipal works (134), transportation (49), as well as ecological construction and environmental protection (35), representing 63.3% of total net increase. By net investment increase of commercial closed projects in the quarter ring growth, municipal works (RMB 178.2 billion), ecological construction and environmental protection (RMB 897 billion), and transportation (RMB 629 billion) ranked top three and accounted for 64.5% of total net increase in the quarter.


Compared to the end of previous year, by net increase in commercial closed projects in the current year, municipal works (553), transportation (183) and ecological construction and environmental protection (119) ranked top three and accounted for 62% of total net increase. Compared to the end of previous year, by net investment increase in commercial closed projects in the current year, municipal works (RMB 915.3 billion), transportation (RMB 485.3 billion), and integrated urban development (RMB 313.4 billion) ranked top three and accounted for 72.3% of total net investment increase.


Part of secondary industries of top three industries of commercial closed projects. As of the end of December, among secondary industries of municipal works, by number of commercial closed projects, municipal roads (278), wastewater treatment (264), and other (94) ranked top three and accounted for 55.2% of total commercial closed municipal projects; by investment amount of commercial closed projects, rail transit (RMB 601.5 billion), municipal roads (RMB 355.3illion) and pipe network (RMB 203.4 billion) ranked the top three and accounted for 68.5% of total investment. Among secondary industries of transportation, by number of commercial closed projects, Grade I highway (114), expressway (89) and Grade II highway (53) ranked the top three and accounted for 69.4% of total commercial closed transportation projects; by investment amount of commercial closed projects, top three secondary industries were dominated by expressway (RMB 830.5 billion), Grade I highway (RMB 182.8 billion) and others (RMB 521 billion) and accounted for 86.7% of total investment amount of commercial closed transportation projects. Among secondary industries of ecological construction and environmental protection, 179 comprehensive treatment projects were commercial closed with investment of RMB 308.8 billion, implying 84.4% of total commercial closed ecological construction and environmental protection projects and 91.7% of total investment amount.


(V) Investment in VGF projects accounts for over 50% 


According to the statistics of these three kinds of return mechanism, as of the end of December, there are 1,323 user-pay projects with investment of RMB 1.6 trillion, accounting for 18.5% and 14.7% of the total in management database respectively; 2,884 government -pay projects with investment of RMB 3.3 trillion, accounting for 40.4% and 30.6% of the total in the management database respectively; 2,930 VGF (i.e. government-and-user-pay) projects with investment of RMB 5.9 trillion, accounting for 41.1% and 54.7% of the total in management database respectively. Details are shown in Figures 2-5-1 and 2-5-2.


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Figure 2-5-1 Breakdown of projects in management database as of the end of December by return mechanism (Nr.)


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Figure 2-5-2 Breakdown of investment in projects in management database as of the end of December by return mechanism (in RMB 100 million)


The shares of projects and investments since the same period in last quarter and previous year by three return mechanisms are shown in Figures 2-5-3 and 2-5-4 respectively. It can be seen that the shares of user-pay project entries were basically on a slight decline quarter-by-quarter, while changes in the share of government-pay and VGF project entries showed an opposite trend.


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Figure 2-5-3 Comparison of shares of projects in management database by return mechanism


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Figure 2-5-4 Comparison of shares of investment of projects in management database by return mechanism


According to the statistics of these three kinds of return mechanism, as of the end of December, compared to the end of previous quarter, the number of user-pay projects decreased 61, VGF and government-pay projects increased 215 and 205; the investment amount user-pay projects decreased RMB 655 billion, VGF and government-pay projects increased RMB 392 billion and RMB 311.1 billion respectively. 


Compared to the end of previous year, the numbers of net project entries increase of user-pay, VGF and government-pay projects were 31, 1,447 and 1,386, with a net investment decrease of RMB 24.8 billion, and a net investment increase of RMB 2,550.9 billion and RMB 1,441.7 billion respectively. 


Commercial closed projects. As of the end of December, 479 user-pay commercial closed projects with an investment of RMB 516.6 billion were recorded; 1,042 VGF commercial closed projects with an investment of RMB 2,562.2 billion were recorded; 1,208 government-pay projects with an investment of RMB 1,526.1 billion were recorded.


Compared to the end of last quarter, the numbers of net commercial closed projects of user-pay decreased 4, VGF and government-pay projects increased 172 and 173 respectively in the current quarter, with net commercial closed investment decrease of RMB 15.2 billion, increase of RMB 304.4 billion and RMB 223.4 billion respectively.


Compared to the same period in previous year, the numbers of net commercial closed projects increase of user-pay, VGF and government-pay projects were 114, 590 and 674, with net commercial closed investment increase of RMB 59.5 billion, RMB 1,447.8 billion and RMB 864 billion respectively.


(IV) More than 40% of the commercial closed projects started


As of the end of December, 1,159 commercial closed demonstration projects have been started construction, accounting for 42.5% of total, with a net quarter ring growth of 245 projects. The details of different provinces is shown in Figure 2-6. Among them, Shandong (including Qingdao) has started 250 projects, accounting for 71.6% of the total commercial closed projects in the province, with a net quarter ring growth of 22 projects; Sichuan has started 142 projects, accounting for 82.6% of the total commercial closed projects in the province, with a net quarter ring growth of 58 projects; Anhui has started 134 projects, accounting for 69.4% of the total commercial closed projects in the province, with a net quarter ring growth of 71 projects; the remaining provinces started the projects less than 100.


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Figure 2-6 Projects started construction and the proportion of the total number by province as of the end of December


III.  PPP actively implement the new development concept


(I) Demonstration projects private enterprises participated reached 1/3


The type of private sector. 597 signed social capital information of commercial closed projects has been in database at the end of December, including 333 exclusive private capital projects and 256 with a consortium led by private capital. There were 981 private partners signing PPP contracts, in which 340 partners were private enterprises, 27 from Hong Kong, Macao and Taiwan, China, 16 from foreign countries, 599 were state-owned, and another 29 enterprises with undefined category. There were 328 private enterprises, accounting for 34.7% (see Figure 3-1-1).


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Figure 3-1-1 Identification and proportion of 981 private sector partners


Fields with the presence of private enterprises. There was a total of 280 projects with exclusive private capital and a consortium led by private capital with an investment of RMB 494.8 billion, accounting for 46.8% of commercial closed projects and 32.3% of investment. Private-owned and private holding partners were involved in 17 industrial sectors, as described in Figure 3-1-2. There were 112 municipal works projects, 30 ecological construction and environmental protection projects, 20 senior care projects, 15 water conservancy projects, 15 healthcare projects. Each of the remaining sectors had less than 15 projects. 


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Figure 3-1-2 Breakdown of commercial closed demonstration projects including private projects and foreign-funded projects by segment


(II)Western region transportation project investment exceeds 50% 


In terms of the transportation projects in database at the end of December, the western region was the first of the four regions, with 449 projects representing 44.5%, the central region, the eastern region and the northeast China were 276, 244 and 39 respectively. In terms of investment, the western region with 1.9647 trillion yuan ranked first, accounting for 61.7%, the eastern region, the central region, northeast China were RMB 613.7 billion, RMB 512.8 billion, RMB 91.2 billion respectively. See figure 3-2.

 

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Figure 3-2 Comparison of statistics of projects and investment in management database in four segments


(III) The number of the basic public services projects continue to grow


The basic public services sector mainly includes six fields, such as culture, sports, healthcare, senior care, education and tourism. By the end of December, there are 1350 happiness industry projects and investment in the management database with an investment of 1.1 trillion, sharing 18.9% and 10.4% of management base respectively.


The top three projects were education (343), tourism (310), health care (261); Tourism (426.1 billion), education (175.3 billion), healthcare (159.9 billion) ranked top three. See figure 3-3-1, figure 3-3-2.


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Figure 3-3-1 Project entries in management database in the happiness industry (Nr.)


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Figure 3-3-2 Investments in project entries in management database in the happiness industry (in RMB 100 million)


(VI) Pollution control and green low-carbon projects reaching commercial closed very fast


PPP projects in many fields, such as public transportation, water supply and drainage, ecological construction and environmental protection, hydraulic construction, renewable energy, education, science and technology, culture, senior care, healthcare, forestry and tourism, all have the function of supporting pollution control and promoting the green and low carbon of economic structure. According to this caliber, there are 3979 pollution control and green and low-carbon projects in management database with an investment of 4.1 trillion yuan, accounting for 55.8% and 38% of management database respectively. There are 150 quarterly net increase projects with an investment of 205.6 billion yuan, the annual net increase of 1,507 items, accounting for a decline of 2.1% in the management database, with an investment of RMB 1.4 trillion, accounting for a decrease of 2% in the management database.


There are 1556 pollution control and green low-carbon commercial closed projects with an investment of 1.9 trillion yuan, quarterly net 183 commercial closed projects with an investment of 268.2 billion yuan; 764 annual net increase projects with an investment of 1 trillion yuan. At the end of December 2016 to the end of December 2017, the pollution control and green low-carbon projects in management database, investment and proportion are shown in figure 3-4-1, figure 3-4-2 and figure 3-4-3.


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Figure 3-4-1 The number of green low-carbon projects in the management database (Nr.)


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Figure 3-4-2 The investment of green low-carbon projects in the management database (in RMB 100 million)


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Figure 3-4-3 Proportion of the green low-carbon projects and investment in the management database


(V) PPP model helps to implement rural revitalization strategy


Most provinces have started to use the PPP model to solve the “three agriculture” problem and implement the rural revitalization strategy. There are 68 agricultural field projects in management database with an investment of 62.7 billion yuan. Among them, Shandong (including Qingdao)(10), Guizhou(8), Henan(8) ranked the top three by the number of projects, accounting for 38.2% of the agricultural field projects of management database respectively. Jiangsu, Shandong (including Qingdao), Henan ranked first three, with an investment of 12.33 billion yuan, 7.71 billion yuan, and RMB 7.08 billion, accounting for 43.3% of the in agricultural field investment in the management database, as shown in Figure 3-5-1 and Figure 3-5-2.

 

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Figure 3-5-1 Number of agriculture projects in management database (Nr.)


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Figure 3-5-2 investment of agriculture projects in management database (in RMB 100 million)



According to the latest statistics of fixed asset investment from National Bureau of Statistics released at the end of December 2017, the total national fixed asset investment reached 63.2 trillion yuan in 2017. Over the same period, the new landing PPP project investment was 2.4 trillion yuan, accounting for 3.8% of the former.


From the four major sectors of regional development, January-December, the Eastern Region PPP commercial closed project investments investment is 844.5 billion yuan, regional fixed assets investment is 26.5837 trillion yuan, and the region PPP commercial closed project investment accounted for 3.2%; The Central region PPP commercial closed project investment is 518.1 billion yuan, regional fixed assets investment is 16.34 trillion yuan, accounting for 3.2%. The Western region PPP commercial closed project investment is 755.5 billion yuan, regional fixed assets investment is 16.6571 trillion yuan, accounting for 4.5%; Northeast China PPP commercial closed project investment is 253.3 billion yuan, regional fixed assets investment 30,655 billion yuan, accounting for 8.3%.


(VII) Nearly half of impoverished counties explore using PPP model to overcome poverty


According to the information released by the Office of the State Council Poverty Alleviation and Development leadership group, 680 districts (a total of 832, hereinafter referred to as impoverished counties) among the 152 counties of poverty alleviation and 14 special difficult areas at present, 394 impoverished counties have explored the use of PPP model to support poverty alleviation, and have projects into the management database, accounting for 47.4% of the total impoverished counties. According to provincial statistics, by the number of PPP projects in impoverished counties, Guizhou(290), Inner Mongolia(143), Hunan Province(124)ranked top three. The number of PPP projects in impoverished counties of Anhui, Inner Mongolia, Hunan ranked top three, accounting for 100%, 87.1%, and 80% respectively. See Figure 3-7.


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Figure 3-7 Comparison of the counties having PPP projects and all the impoverished counties by the end of December


There were 1272 projects in management database from 394 impoverished counties with an investment of RMB 1.1 trillion. Among them, 350 commercial closed projects with an investment of RMB 284.7 billion. In terms of industrial sectors,municipal works, transportation, tourism ranked top three with the number of 451,146,126, sharing 35.5%, 11.5%, 9.9% of the total projects in poverty counties respectively. In terms of investment, Municipal works, transportation, tourism ranked top three by with an investment of 260.8 billion, 178 billion, 155.9 billion and accounted for 24.7%, 16.8%, 14.7% respectively of the total projects investment in impoverished counties. Municipal works(132), transportation(52), water conservancy(28)ranked top three by the number of projects in management database, sharing 37.7%, 14.9%, 8.0% of the total commercial closed projects in impoverished counties respectively;municipal works(64.2 billion),integrated urban development(62.3 billion),transportation(51.4 billion) ranked top three by the investment of commercial closed projects and accounted for 22.6%, 21.9%, 18.1% of total investment on commercial closed projects in impoverished counties respectively.


Source: China Public Private Partnerships Center
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