Vice Minister of the Ministry of Finance, People’sRepublic of China
October 7th, 2016 Washington D.C.
Distinguished Vice President Laura Tuck, distinguished guests, friends， ladies and gentlemen,
Good Afternoon! It’s a great pleasure to be here at the Workshop on PPP Development in China to introduce the progress ofPPP practice in China over the past three years. On behalf of the Ministry ofFinance of China, I would like to extend warm welcome to all delegates and expressmy sincere thanks to the World Bank for your great support to this workshop.
To further bolster China’s sustainable economic and social development, theChinese government has carried out a new round of comprehensive reform since2013. The Chinese government has set key priorities, including reinforcing the ruleof law, giving play to the decisive role of the market in resource allocation, establishinga modern state governance system and enhancing capacity. As an innovative managementpattern of public goods and services provision, the PPP model has been broadly appliedin China. In public service, anything that can be properly managed by themarket should be open to social capital or corporate partners. The Chinese government has acted more as a policy maker and market regulator, and let the corporatepartners take more initiative and be more innovative. PPP is a reform to China’s existing systems and mechanism. It has coordinately pushed forward thereforms of the administrative system, fiscal system, investment and financing mechanism.PPP is now a major element of the current supply-side structural reform and acomponent of deepening the reform in all rounds.
Since 2014, the Chinese government has made initial achievements in advancing the PPP development in a systemic, integrated and coordinated way. The PPP developmentin China has shown three notable features.
First, we have a high starting point. In the top-level design of PPP, we have fully learned experienceand good practices from countries that have a well-developed PPP market, andactively absorbed outcomes in terms of framework setting from international organizationsincluding the World Bank, and Asian Development Bank etc. Based on the nationalconditions, we have initially built up a 3-in-1 regulatory framework that includeslaws, policies and guidelines, giving full play to the function of consultingagencies, created a sound PPP policy environment and market environment, madeefforts to establish a unified, well-regulated, transparent and efficient PPPmarket.
Second, we highlight innovation. We have set the strategy of carrying out demonstration projects. Wehave given full play to the guiding role of demonstration projects, like ourlighthouse, and explored a PPP development path that can be replicated,promoted and amplified. We have encouraged to incorporate more green, low-carbonand social projects particularly in such fields as low-carbon publictransportation, medical care and elderly care, culture and education etc., soas to guide the economic development model transformation and economic restructuring.
Third, we have a strong foundation. We have established PPP management institutions at the national,provincial, even municipal and county levels; and we have set up a national PPPinformation platform, where all PPP project information is input, managed andreleased in a unified fashion from municipal and county level to central level,achieving online supervision and promoting information disclosure. We haveprovided trainings to various sectors and multiple levels of the government, corporatepartners, financial institutions, and third-party consulting agencies etc. Wehave done extensive publicity via means of WeChat official account and websiteetc., to raise public awareness. Here, I would like to take this opportunity toannounce that the English website of China PPP Center has been officiallylaunched. Welcome to visit the website.
By theend of August 2016, 10,313 PPP projects, including those under identification, preparationand implementation, with a total investment of RMB 12.3 trillion and covering 19sectors, have been incorporated into the project database of national PPP information platform of the Ministry of Finance. WhilePPP market in China is booming, we also face challenges such as regulatoryissues of PPP market development. When making a choice between speed andquality of PPP market development, we put discipline and quality in the firstplace.
China’sPPP market is interlinked with and open to the large international market. Wewelcome international investors to participate in China’s PPP market and shareour development achievements. We also encourage Chinese enterprises to take advantageof the PPP model, participate in infrastructure construction and services inforeign countries. In the future, we will further strengthen the cooperationwith the World Bank in this field. We hope to fully tap the market power toincrease the provision of international public service and improve the qualityand efficiency of public services.
I wish the workshop agreat success. Thank you all!