2021-12-07

Quarterly Report on the Project Library of the National PPP Integrated Information Platform (No.4)

(28-NOV-2016)


Note:English version for reference only,Chinese version shall prevail.

Summary

According to the statistics from the National Public-Private Partnership (PPP) Integrated Information Platform established by the Ministry of Finance, as at the end of September 2016, the Ministry of Finance has approved two batches of demonstration projects (232 projects in total) , with a total investment of RMB 786.63 billion. Among those demonstration projects, 128 are in the process of implementation, with a total investment of RMB 345.6 billion; and the proportion of the PPP agreement signed is 58.2%. Compared with the situation at the end of June, the rate of the the PPP agreement signed for the first batch of demonstration projects did not show any change, while that for the second batch increased.

In terms of the situation around the country, the  demand for PPP projects continued to increase; at the end of September, there were 10,471 projects in the library, with a total investment of RMB 12.46 trillion; among them, 946 projects were reaching the implementation phase, with a total investment of RMB 1.56 trillion, which is spectacular; the the proportion of the PPP agreement signed was 26%, and compared with the situation at the end of June, the projects included in the library have been put into implementation more rapidly, that’s the reason why we see a stable growth of the rate. According to the analyses, the concentration ratios in terms of regions and industries of the projects included in the library are relative high; the projects in Guizhou, Shandong (including Qingdao), Xinjiang, Sichuan and Inner Mongolia ranked top five in terms of number, and altogether accounted for nearly half of the projects in the library; the projects in the industries of municipal engineering, transport and area development ranked top three in terms of sectors , totaling more than half of the projects in the library. In respect of the return mechanism, the proportion of projects with government payments and those with viability gap funding increased by 5 percentages compared with the situation at the end of June. Considering the slight increase from March to June, the said proportion has been rising gradually.

Text

In 2015, the Ministry of Finance issued the Circular on Regulating the Operation of the Public-Private Partnership Integrated Information Platform (Cai Jin [2015] No.166), establishing the Public-Private Partnership (PPP) Integrated Information Platform and the project library. As at the end of September 2016, there have been 10,471 projects included in the PPP Integrated Information Platform upon review as required, with a total investment of RMB 12.46 trillion; among those projects, 946 were in the process of implementation, with a total investment amounting to RMB 1.56 trillion; 232 were the demonstration projects of the Ministry of Finance , with a total investment of RMB 786.63 billion, including 128 in the process of implementation with a total investment of RMB 345.6 billion.

The specific information is shown as follows:

I. Information on Demonstration Projects of the Ministry of Finance

As at the end of September, 2016, the number of the first batch of PPP demonstration projects launched by the Ministry of Finance in 2014 was 26 (original 30, while 4 were canceled later); and the number of the second batch of demonstration projects in 2015 was 206; and the total number of demonstration projects reached 232, and the total investment amounted to RMB 786.63 billion. The total investment decreased by RMB 15.91 billion from the end of June, and the main reason is that as more projects entered the preparation stage from identification stage, the estimated investment for those projects became more accurate, and the amount of investment in the project library was changed accordingly.

1. Number of projects have their PPP agreement signed  increased significantly

The full lifecycle management of a PPP project includes five stages, i.e., identification, preparation, procurement, implementation and transfer. The current situation of the first two batches of demonstration projects as at the end of January, March, June and September is shown in Figures 1-1-1 and 1-1-2.

With respect to the demonstration projects entering the implementation phase, there were 66 at the end of January, with investment of RMB 214.6 billion; 73 at the end of March, with investment of RMB 226.7 billion; 105 at the end of June, with investment of RMB 307.8 billion; and 128 at the end of September, with investment of RMB 345.6 billion. 7 more projects had their contracts signed and put into implementation in the latter two months of the first quarter; 32 more projects in the second quarter; and 23 more projects in the third quarter; the number of demonstration project contracts signed and to be implemented grew significantly.

Figure 1-1-1 Comparison of numbers of demonstration projects in each phase at the end of January, March, June and September

 

Figure 1-1-2 Comparison of investments of demonstration projects in each phase at the end of January, March, June and September

2. The second batch of demonstration projects were put into implementation more rapidly

The proportion of the PPP agreement signed equals to the ratio between the total numbers of the projects in the implementation and transfer phases and the numbers of the projects in the preparation, procurement, implementation and transfer phases. By this criterion, the implementation rate of the two batches of demonstration projects at the end of September was 58.18%, up by 9.78 percentage from 48.40% at the end of June, as shown in Figure 1-2-1.


Figure 1-2-1 Changes in the proportion of the PPP agreement signed of the two batches ofdemonstration projects

At the end of September, 19 of the first batch demonstration projects entered the implementation phase, with the the proportion of the PPP agreement signed reaching 76%; there has been little change since the end of June, and the projects that have not finished their procurement were mainly those large rail transit projects which require longer time for preparation and procurement. 109 of the second batch have entered the implementation phase, which takes 56% of all the second batch projects; compared with the corresponding figures 89 and 45% at the end of June, there was a trend of more speedy start of implementation. For the specific information, see Figure 1-2-2.

  

Figure 1-2-2 Proportion of the PPP agreement signed of the first and second batches of demonstration projects at the end of September

3. Municipal engineering projects took lead in terms of number

Among the 128 demonstration projects signed and to be implemented, the number of municipal engineering projects was 62, accounting for 48%; the number of ecological construction and environmental protection projects was 12, accounting for 9%; the number of transport projects was 10, accounting for 8%; the number of water conservancy construction projects is 10, accounting for 8%; and the rest was 34, accounting for 27%. See Figure 1-3-1 for details. The total number of demonstration projects and the number of projects signed and to be implemented at the end of September in all industries are shown in figure 1-3-2.

 

Figure 1-3-1 Sectoral distribution of demonstration projects signed and to be implemented at the end of September

 

Figure 1-3-2 Comparison of the total number of demonstration projects and the number of projects signed and to be implemented at the end of September in all sectors

II. Projects in the Library

As at the end of September, there were 10,471 projects in the library, with a total investment of RMB 12.46 trillion, showing an increase of 1,186 projects and RMB1.86 trillion respectively from the end of June; among them, 946 projects were in the process of implementation, with a total investment reaching RMB 1.56 trillion, showing an increase of 327 projects and RMB 500 billion respectively from the end of June.

1. Total number of projects continued to increase, and projects to be implemented were supported by considerable investment

The total number of projects in the library at the end of each month and the number of project in each stage from January to September are shown in figure 2-1-1, and the investment amount in figure 2-1-2. The projects included in the library increased by 386 and RMB480 billion on average month by month, reflecting the increasing demand for PPP projects. It should be noted that about 70% of those projects were PPP project alternatives in the identification stage, because they were scheduled to be implemented in the coming years and the value for money (VFM) assessment and financial capacity demonstration were not completed yet. The figure just indicated that local government departments had the intention to use the PPP model; for those projects to become real PPPs, strict demonstration and examination is required. However, 946 projects were signed and to be implemented with RMB 1.56 trillion investments as at the end of September, showing still considerable investment in the project in the process of implementation.

 

Figure 2-1-1 Monthly change in the number of projects in different stages

 

Figure 2-1-2 Monthly change in the investment amount in projects in different stages (RMB 1 trillion)

2. Projects in the library were put into implementation more rapidly, with steady growth in the proportion of the PPP agreement signed

The projects in the implementation stage amounted to 298, 369, 619 and 946 at the end of January, March, June and September, respectively. 71 more projects were concluded and put into implementation in the latter two months of the first quarter, showing an increase of 23.8%; 250 more projects in the second quarter, showing an increase of 67.7%; and 327 more projects in the third quarter, showing an increase of 52.8%. The implementation rate kept rising substantially, which indicated that the projects in the library were put into implementation more rapidly.

The implementation rates were 20%, 22%, 24% and 26% at the end of January, March, June and September, respectively, showing a stable growth. The numbers of projects in the preparation, procurement or implementation stages at the end of January, March, June and September are shown in figure 2-2-1.

  

Figure 2-2-1 Distribution of projects in the preparation, procurement and implementation stages at the end of January, March, June and September

3. Projects in the library concentrated in certain regions

In terms of the number of projects in the library, the top five provinces (autonomous regions) were Guizhou, Shandong (including Qingdao), Xinjiang, Sichuan and Inner Mongolia, whose specific numbers were 1,725, 1,062, 816, 797 and 748, respectively, altogether accounting for 49.2% of the total number of projects in the library. In terms of investment in the projects included in the library, Guizhou, Shandong (including Qingdao), Yunnan, Henan, Sichuan and Hebei ranked the top six, with the investment of RMB1.5 trillion, RMB1.2 trillion, RMB 917.8 billion, RMB 871.7 billion, RMB 855.5 billion and RMB 667.5 billion, respectively, altogether accounting for 48.3% of the total investment of the projects included in the library.

Except that some projects in Ningxia were withdrawn from the library, more projects were entered the library in all the other areas from June to September. There were more new projects in Hebei, Jiangsu, Anhui and Jiangxi, being 106, 105, 95 and 72, respectively, accounting for 31.9% of the new projects nationwide. Jiangsu, Gansu, Guizhou, Hebei and Yunnan recorded larger investments in new projects of RMB 170 billion, RMB 161.7 billion, RMB 150.7 billion, RMB 135.5 billion and RMB 130 billion, respectively.

See Figures 2-3-1 and 2-3-2 for comparison of the number of projects and investment of different regions at the end of September and June. 

 

Figure 2-3-1 Regional distribution of the number of PPP projects


 

Figure 2-3-2 Regional distribution of the investment amounts in PPP projects (RMB100 million)

 

4. Projects included in the library concentrated in certain sectors

The project library includes projects in 19 primary industries: energy, transportation, water conservancy construction, ecological construction and environmental protection, municipal engineering, area development, agriculture, forestry, science and technology, low-cost housing projects, tourism, medical care and public health, elderly care, education, culture, sports, social security, government infrastructure and others. See the appendix for the introduction on industry classification. See Figures 2-4-1 and 2-4-2 for the numbers and investment amounts of PPP projects in different sectors. In particular, municipal engineering, transportation and area development ranked the top three in terms of both the number of projects and investment amount, accounting for 53.7% and 68.0% of the total number and investment of projects included in the library, respectively.

As compared with the end of March, there were more new projects in municipal engineering, transportation and area development, with the numbers being 459, 136 and 97, respectively; and new investment in municipal engineering, transportation and area development grew substantially, amounting to RMB 633.6 billion, RMB 386.2 billion and RMB 335.6 billion, respectively.

 

Figure 2-4-1 Sectoral distribution of numbers of PPP projects at the end of September


 

Figure 2-4-2 Sectoral distribution of investment amounts in PPP projects at the end of September (RMB 100 million)


 

Figure 2-4-3 Sectoral distribution of numbers of new projects at the end of September as compared with the end of June


 

Figure 2-4-4 Sectoral distribution of additional investment amounts at the end of September as compared with the end of June

The following is the introduction to numbers and investment amounts of municipal engineering projects, transportation projects and area development projects as at the end of September and comparison with the end of June.

1. Municipal engineering: 3,700 projects with total investment of RMB 3.42 trillion. In particular, there were 809,  616, 396 and 314 projects in four sub-sectors, i.e., sewage treatment, municipal roads, water supply and waste disposal, accounting for 57.7% of the total number of municipal engineering projects; investment amount in projects in three grade-2 industries, i.e., rail transit, municipal roads and pipeline networks  was larger, reaching RMB 1.24 trillion, RMB 540.2 billion and  RMB 376 billion, respectively, accounting for 63.1% of the total investment in municipal engineering projects.

As compared with the end of June, there were 459 new projects. Specifically, there were more new projects in five sub-sectors, i.e., municipal roads, sewage treatment, others, waste disposal and pipeline networks, with the numbers being 102, 69, 50, 37 and 30, accounting for 62.7% of all new projects. The new investment reached RMB 633.6 billion. Specifically, larger increases were shown in the investment in those five sub-sectors, i.e., rail transit, municipal roads, pipeline networks, sponge city construction and others, with the amounts being RMB 199.8 billion, RMB 140.8 billion, RMB 103 billion, RMB 53.8 billion and RMB 40.2 billion, accounting for 84.9% of the total new investment.

 

Figure 2-4-5 Comparison of numbers of municipal engineering projects under PPP model as at the end of September with those as at the end of June


 

Figure 2-4-6 Comparison of investments in municipal engineering projects under PPP model as at the end of September with those as at the end of June


2. Transportation: 1,268 projects with total investment of RMB 3.71 trillion. Specifically, the projects in four sub-sectors, i.e., first-class highways, expressways, second-class highways and others amount to 314, 242, 151 and 134, respectively, accounting for 66.3% of the total transportation projects; the investments in three sub-sectors, i.e., expressways, first-class highways and railways (excluding rail transit) amounted to RMB 2.06 trillion, RMB 599.8 billion and RMB 318.4 billion, respectively, accounting for 80.3% of the total investment of transportation projects.

As compared with the situation as at the end of June, there were 136 new projects. Specifically, there were as many as 46, 26 and 22 new projects in three grade sectors, i.e., first-class highways second-class highways and expressways, respectively, accounting for 69.1% of all new projects. The new investment amounted to RMB 386.2 billion. Specifically, the investments in two grade-2 industries, i.e., expressways and first-class highways, amounted to RMB 281.9 billion and RMB 92.6 billion, respectively, accounting for 97.0% of the total new investment.

 

Figure 2-4-7 Comparison of numbers of transportation projects under PPP model as at the end of September with those as at the end of June

 

Figure 2-4-8 Comparison of investments in transportation projects under PPP model as at the end of September with those as at the end of June

3. Area development: 651 projects with total investment of RMB1.34 trillion. Specifically, the numbers of projects in two sub-sectors, park development and urbanization, were 335 and 163, respectively, accounting for 76.5% of the total number of area development projects; the investments in those two sub-sectors grade-2 industries amounted to RMB 654.3 billion and RMB 508.8 billion, respectively, accounting for 86.3% of the total investment of area development projects.

As compared with the situation as at the end of June, there were 97 new projects, including 55 and 38 new projects in park development and urbanization, respectively; and the net increase in investment amounted to RMB 335.7 billion.

 

Figure 2-4-9 Comparison of numbers of area development projects under PPP model as at the end of September with those as at the end of June

 

Figure 2-4-10 Comparison of investments of area development projects under PPP model as at the end of September with those as at the end of June

5. Proportions of projects with government payments and those with viability gap funding increased slightly

According to statistics by three return mechanisms, there were 4,518 projects with user charges and the investment therein totaled RMB 4.3 trillion, accounting for 43% of the total number of projects included in the library and 35% of the total investment, respectively; there were 3,214 projects with government payments and the investment therein totaled RMB 3 trillion, accounting for 31% and 24% respectively; and, there were 2,739 projects with viability gap funding and the investment therein totaled RMB 5.1 trillion, accounting for 26% and 41%, respectively.

As compared with the situation at the end of June, numbers of new projects with user pays, government payments and viability gap funding were 203, 471 and 512, respectively, with new investments of RMB 169.2 billion, RMB 625.4 billion and RMB 1.07 trillion, respectively. The proportion of projects with government payments and those with viability gap funding increased by 5 percentage compared with the situation at the end of June. Considering the slight increase from March to June, the said proportion has been on the rise gradually.

  

Figure 2-5-1 Distribution of numbers of projects in the library by return mechanism at the end of SeptemberFigure 2-5-2 Distribution of investments in projects in the library by return mechanism at the end of September (RMB 100 million)

 

Figure 2-5-3 Comparison of numbers of projects calculated by return of mechanism at the end of September with those at the end of June

 

Figure 2-5-4 Comparison of investments calculated by return mechanism at the end of September with those at the end of June

 

Appendix:

Introduction to Sector Classification for Project Library

Based on the 13 sectors specified in the Circular of the General Office of the State Council on Forwarding the Guiding Opinions of the Ministry of Finance, National Development and Reform Commission and People's Bank of China on Promoting the Public-Private Partnership Model in the Public Services (Guo Ban Fa [2015] No.42), and upon full consideration of the sector classification standards adopted by the Department of Budget and the Department of Economic Construction, the China Public Private Partnerships Center has determined the industry classification for the project library of the National PPP Integrated Information Platform, which consists of sectors and sub-sectors. 19 sectors include: energy, transportation, water conservancy construction, ecological construction and environmental protection, municipal engineering, area development, agriculture, forestry, science and technology, low-cost housing projects, tourism, medical care and public health, elderly care, education, culture, sports, social security, government infrastructure and others. In particular, according to the opinions of different parties, since March 2016, the sub-sectors of "sewage treatment" has been transferred from the industry of "ecological construction and environmental protection" to "municipal engineering".

Grade-1 industries in which there were larger numbers of projects in the PPP project library and investments are as follows:

1. Municipal engineering: including 18 grade-2 industries, i.e., water supply, water drainage, sewage treatment, power supply, gas supply, heat supply, cooling, parks, parking lots, squares, landscaping, sponge cities, pipeline networks (including underground comprehensive pipeline corridors), waste disposal (excluding waste-based power generation), municipal roads, buses, rail transit and others.

2. Transportation: including 12 grade-2 industries, i.e., expressways, first-class highways, second-class highways, railways, channel navigation, transportation hubs, ports and piers, airports, tunnels, bridges, warehouse logistics, and others.

3. Area development: including 5 grade-2 industries, i.e., park development, urbanization, land reserves, workshop construction and others.


FROM: CPPPC

EDITER: VIEW:1124

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