Introduction of Case Studies of PPP Demonstration Projects (Vol.3) – Area Development


With the promotion of the PPP model and the dynamic advance of the new urbanization strategy, the adoption of the PPP model in area development projects has become increasingly favored by local governments. Area development is an important channel for achieving new type of urbanization and optimizing economic structure by regarding land exploitation and utilization as a foundation, investment and financing as the key, operating performance as the direction, and facilitating the centralized and integrated development of both new and old urban districts.

Area development is a significant engine and carrier of domestic economic development and is the key to ensuring local social and economic sustainability, but there are still lots of puzzles in implementing PPP model. In order to summarize the experience and display the outcomes of the PPP demonstration projects in area development, the China Public Private Partnerships Center, the New Urbanization Research Group of Party School of the Central Committee of Communist Party of China and Beijing Fortune Consulting Co., Ltd. set up a panel consisting of experts from competent departments of industry, Party School of the Central Committee of C.P.C, top domestic PPP consulting agencies, large-scale construction investment companies, law firms and fiscal institutions to jointly compile and publish the Case Studies of PPP Demonstration Projects (Vol.3) – Area Development.

In accordance with the requirements of the new development that emphasizes the combination of the decisive role of market in resource allocation and the guiding role of government, the case study is divided into Chapter of Cases and Chapter of Contention, with a view to promoting the integrated development of new type of industrialization, informatization, urbanization and agricultural modernization. In the Chapter of Cases, we select seven cases of area development projects from the first three batches of demonstration projects published by the Ministry of Finance to do a detailed analysis, provide a comprehensive summary and make suggestions in terms of some specific fields oriented to industry introduction and industry development services including the development of the park, urbanization, towns with characteristics. In the Chapter of Contention, we summarize the difficulties in the practical operation of PPP projects in area development in terms of the status of industry, policies and regulations, project management, industry introduction, fiscal, taxation, “two evaluations”, investment and financing, design of performance evaluation, reward mechanism, and misunderstandings with remarkable insights.

Given the fact that China’s PPP policies are now still in the process of improvement and standardization, the PPP projects in area development are yet mature due to its huge investment, wide cooperation ranges, difficult industrial planning, long period of return, and considerable impact on regional development. Although the report does a lot of exploration and innovation in terms of transaction structure, design of performance evaluation, industry introduction and so on, there is room for improvement. Next, the CPPPC will continue to compile case studies of PPP demonstration projects in various fields concerned by all sectors of the society such as financing and waste disposal, and to set up models, to sum up experience with more references for practice.


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