2021-12-07

Quarterly Report on the Project Database of the National PPP Integrated Information Platform (No.8)

(24-NOV-2017)


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

 

Report on China PPP Integrated Information Platform Project Database as of September 2017

 

Executive Summary 

 

The following is a summary of China PPP Integrated Information Platform Project Database as of the end of September 2017:


National total project entries: There were 14,220 projects admitted in total with an accumulated investment of RMB 17.8 trillion, covering 31 provinces (autonomous regions, municipalities) and Xinjiang Corps and 19 industrial sectors. Among them, 6,778 projects in preparation, procurement, implementation and transfer stages have completed the value-for-money (VFM) evaluation and the financial affordability assessment, and have been included in the management database, with an investment of RMB 10.1 trillion; 7,442 projects in the identification stage have not completed the VFM evaluation and the financial affordability assessment yet, and have been included in the pre-pipeline database piplines willing to use the PPP mode, with a total investment of RMB 7.7 trillion.


Projects in management database: There are 4,390 projects in stages of preparation and procurement, sharing 64.8% and investment of RMB 6.0 trillion; 2,388 projects (commercial closed) in implementation and transfer stages (currently none in the transfer stage), 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 35.2%, an investment of RMB 4.1 trillion, covering 29 provinces (autonomous regions, municipalities) and Xinjiang Corps except Tianjin and Tibet and 19 sectors. 914 projects have started construction, counting 38.3% of all the commercial closed projects. 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 entries in management database is 862 with an investment of RMB 1,303.6 billion; net increase of commercial closed projects is 367 with an investment of RMB 795.8 billion. The commercial closed rate is increased by 1.1 ppts. In terms of regional distribution, Shandong (including Qingdao city), He'nan and Inner Mongolia ranked top three by number of project entries, sharing 27.2% of management database; Hunan, Xinjiang and Hubei ranked top three by net increase in the ring growth, sharing 27.8% of national net increase in the ring growth. Shandong (including Qingdao city), Xinjiang and Anhui ranked top three by number of commercial closed projects, sharing 29.7% of total commercial closed projects; Xinjiang and Anhui ranked top two by net increase of commercial closed projects in the ring growth, Shandong (including Qingdao city) and Henan were tied for third, sharing 33.8% of national net increase in the ring growth. In terms of industrial distribution, municipal works, transportation, ecological construction and environmental protection ranked top three by number of project entries, sharing 58.6% of management database; municipal works, transportation, ecological construction and environmental protection ranked top three by net increase in the ring growth, sharing 57.4% of national net increase in the ring growth; 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, ecological construction and environmental protection also ranked top three by net increase of commercial closed projects in the ring growth, sharing 59.4% of national net increase in the ring growth. In terms of return mechanism, there are 1,384 user-pay projects with an investment of RMB 1.6 trillion, sharing 20.4% and 16.3% of management database respectively; 2,715 government-and-user-pay projects with an investment of RMB 5.5 trillion, sharing 40.1% and 54.3%; 2,679 government-pay projects with an investment of RMB 3.0 trillion, sharing 39.5% and 29.4%. In terms of areal distribution, eastern China accounted for about 28.8% of management database, central China for 27.6%, western China for 39.7% and northeast China for 4.0% by project entries; eastern China accounted for 38.4% of national total, central China for 23.7%, western China for 33.3% and northeast China for 4.6% by the number of commercial closed projects. Western region showed greater demand for PPP mode. In terms of green and low-carbon projects, there are total 3,289 projects with investment of RMB 3.9 trillion, sharing 56.5% and 38.4% of management database respectively; 466 net increase in the ring growth with investment of RMB 467.6 billion. Among them, there are 1,373 commercial closed projects with investment of RMB 1.6 trillion; 197 net increase in the ring growth with investment of RMB 233.3 billion. In terms of happiness industry in culture, education, healthcare, senior care, sports and tourism, there are 1,321 projects with investment of RMB 1.1 trillion, sharing 19.5% and 10.8% of management database respectively; 172 net increase in the ring growth with investment of RMB 164.8 billion. Among them, there are 389 commercial closed projects with investment of RMB 332.9 billion; 71 net increase in the ring growth with investment of RMB 49.1 billion.


Comparison between PPP commercial closed project investments and fixed assets investments: for the period from January to August, 2017, accumulated PPP commercial closed project investments accounted for 3.9% of fixed assets investments in the same period. Among them, PPP commercial closed project investment in eastern China amounted to RMB 0.6 trillion and regional fixed assets investment amounted to RMB 16.8 trillion, sharing 3.4% in total fixed asset investments; PPP commercial closed project investment in central China RMB 0.4 trillion and regional fixed assets investment RMB 10.1 trillion, sharing 3.8%; PPP commercial closed project investment in western China RMB 0.5 trillion and regional fixed assets investment amounted to RMB 10.4 trillion, sharing 4.6%; PPP commercial closed project investment in northeast China RMB 0.1 trillion and regional fixed assets investment RMB 1.9 trillion, sharing 6.6%.


National demonstration projects: national demonstration projects totaled 697 with accumulated investment of RMB 1.8 trillion, covering 30 provinces (autonomous regions, municipalities) except Tibet, and Xinjiang Corps and 18 sectors. Among them, there are 572 commercial closed demonstration projects with investment of RMB 1.5 trillion, covering 29 provinces (autonomous regions, municipalities) except Tianjin and Tibet, and Xinjiang Corps and 18 sectors with commercial closed rate of 82.1%, an increase of 11.0 ppts in the ring growth; 77 commercial closed projects were increased with investment of RMB 235.1 billion. Especially, the first batch 22 demonstration projects (since the end of last year) and the second batch 162 demonstration projects (since the end of March this year) have been 100% commercial closed; 388 in the third batch 513 demonstration projects were commercial closed with commercial closed rate of 75.6%. 243 projects have been started, accounting for 42.5% of the commercial closed demonstration projects. In terms of regional distribution, Henan, Yunnan and Shandong (including Qingdao city) ranked top three by commercial closed projects, sharing 25.0% of commercial closed demonstration projects; in the top three by increase value, Yunnan had 17, Hubei had 14, Hunan had 7, sharing 49.4% of new commercial closed demonstration project in the ring growth. In terms of industrial distribution, municipal works, transportation, ecological construction and environmental protection ranked top three by the number of commercial closed projects, sharing 64.3% of total commercial closed demonstration projects; in the top three by the ring growth, municipal works, transportation, ecological construction and environmental protection increased 31, 12 and 8 respectively, sharing 66.2% of total new commercial closed demonstration projects. In terms of private enterprise participation, there are 944 signed private sectors for 572 commercial closed demonstration projects, including 34.7% of private enterprises, a ring decrease of 2.3 ppts; private enterprises participated in 270 demonstration projects, sharing 47.2%, a ring decrease of 1.3 ppts.


Application and promotion of “Internet+”: as of the end of September, PPP Chinese and English official websites saw respectively 4.93 million and 1.71 million visits since launch, the ring growth of 1.27 million and 0.28 million respectively; “China PPP Map” mobile client (APP) was downloaded for over 39,794 times, the ring growth of 10,243 times; “PPP” WeChat official account was followed by 119,000 people, the ring growth of 14,000.


Body text

 

In accordance with requirements of the Notice on Standardizing the Operation of PPP Integrated Information Platform (CJ [2015] No. 166), China PPP Integrated Information Platform and Project Database was established. As of the end of September 2017, projects reviewed and included into project database in accordance with relevant requirements (i.e. national project entries) totaled 14,220 with a total investment of RMB 17.8 trillion, covering 31 provinces (autonomous regions, municipalities) and Xinjiang Corps and 19 industrial sectors. Among them, 6,778 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 10.1 trillion; 7,442 projects in the identification stage have not completed the VFM evaluation and the financial affordability assessment yet, and have been included in the pre-pipeline database as the projects that local governments are willing to adopt the PPP mode, with a total investment of RMB 7.7 trillion. There are 2,388 commercial closed projects in implementation and transfer stages (currently 0 in the transfer stage) in management database, with investment of RMB 4.1 trillion; and 697 national demonstration projects. The report is set out as follows

 

I. National demonstration projects

As of the end of September, national demonstration projects totaled 697 with a total investment of RMB 1.8 trillion. 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 1194.3 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 and the number and investment of commercial closed projects gradually increasing month by month. As of the end of September, commercial closed projects totaled 572 with an investment of RMB 1.4741 trillion and commercial closed rate of 82.1%; compared with the data in the end of last quarter (hereinafter referred to as the ring growth), a ring growth of 77 commercial closed projects with an investment of RMB 235.1 billion and 11 ppts growth in commercial closed rate; an increase of 209 commercial closed projects with an investment of RMB 536 billion and 32.3 ppts in commercial closed rate over the end of last year(the third batch of demonstration projects), and an increase of 444 commercial closed projects with an investment of RMB 1128.5 billion and 23.9 ppts in commercial closed rate on a YoY basis. See Figure 1-1-1 for quarterly changes in overall commercial closed rate since the same period last year. Commercial closed rate is on the trend of steady increase.

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


The first batch (since the end of last year) and the second batch of demonstration projects (since the end of March this year) have been 100% commercial closed. As of the end of September, 388 of the third batch projects were commercial closed with an commercial closed rate of 75.6%, an increase of 77 commercial closed projects with an investment of RMB 233.6 billion and 15.0 ppts in commercial closed rate in the ring growth, and an increase of 168 commercial closed projects with an investment of RMB 411.1 billion and 32.7 ppts in commercial closed rate over the end of last year. See Figure 1-1-2 for commercial closed of the third batch of demonstration projects.

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



(II) 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 52 commercial closed national demonstration projects, followed by Yunnan with 47, Shandong with 44 (including 4 of Qingdao), Anhui with 38, Hebei with 38, Hubei with 28, Fujian with 27 (including 1 of Xiamen), Inner Mongolia with 27, Hunan with 26, Zhejiang with 22 (including 4 of Ningbo), Sichuan with 21, Guangdong with 20, Jiangsu with 20 (all other regions with less than 20), sharing 71.7% of total commercial closed demonstration projects. See Figure 1-2-1 for the stages of demonstration projects and commercial closed as of the end of September by region.

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Figure 1-2-1 Stages of demonstration projects and commercial closed as of the end of September by region


A total of 77 commercial closed demonstration projects are increased over the same period, including 17 in Yunnan, 14 in Hubei, 7 in Hunan, 4 in Hebei and Xinjiang respectively, 3 in Shandong (including Qingdao), Anhui, Jiangsu, and Jiangxi respectively, 2 in Inner Mongolia, Sichuan, Guangdong, Jilin, Shaanxi, Liaoning, Qinghai, and Guangxi respectively, 1 in Fujian, Zhejiang, and Heilongjiang respectively; a total of 209 commercial closed demonstration projects are increased over the end of last year, with Yunnan (27), Henan (21) and Hubei (21) ranking top three by increased number; a total of 444 commercial closed demonstration projects are increased over the same period, with Yunnan (41), Shandong including Qingdao (40) and Henan (33) ranking top three by increased number.


(III) Commercial closed 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 September, the commercial closed projects have covered 18 industries. See Figure1-3-1 for breakdown of demonstration projects in each stage as of the end of September by industry (Nr.)

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Figure1-3-1 Breakdown of demonstration projects in each stage as of the end of September by industry (Nr.)


As shown in the figure, Municipal works, transportation and ecological construction and environmental protection ranked top three by the number of commercial closed demonstration projects. There were 256 municipal works projects, accounting for 44.8% of total commercial closed demonstration projects with commercial closed rate by 84.2%, implying an increase of 31 in the ring growth, 76 over the end of last year and 194 over the same period last year; there were 61 transportation projects, accounting for 10.7% of total commercial closed demonstration projects with commercial closed rate by 78.2%, implying an increase of 12 in the ring growth, 24 over the end of last year and 51 over the same period last year; there were 51 ecological construction and environmental protection projects, accounting for 8.9% of total commercial closed demonstration projects with commercial closed rate by 86.4%, implying an increase of 8 in the ring growth, 21 over the end of last year and 39 over the same period last year; there were 204 remaining projects, accounting for 35.7% of total commercial closed demonstration projects.

Among the 77 new commercial closed demonstration projects, municipal works have 31, ranking the first by increased number, followed by transportation with 12, ecological construction and environmental protection with 8, total accounting for 66.2% of increase.


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

As of the end of September, 243 commercial closed demonstration projects have been started, accounting for 42.5% of total. The number of projects started and the percentage of the projects in total commercial closed projects are shown in Figure 1-4-1. Among them, Shandong (including Qingdao) has started 31 projects, accounting for 70.5% of the total commercial closed projects in the province; Anhui has started 23 projects, accounting for 60.5% of the total commercial closed projects in the province; Yunnan has started 22 projects, accounting for 46.8% of the total commercial closed projects in the province; the remaining provinces started the projects less than 20.

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Figure 1-4-1 Breakdown of started demonstration projects by provinces and percentage of commercial closed projects as of the end of September


II. Projects in management database

As of the end of September, there were 14,220 national project entries in total with investments of RMB 17.8 trillion, including projects in identification, preparation, procurement, and implementation stages, no projects in transfer stage. Among them, projects in the identification stage accounting for 52.3% were included in pre-pipeline database because that: some projects are going to be developed in the next few years; some projects have not yet completed the VFM evaluation and financial affordability assessment, which only shows that local governments are willing to adopt PPP mode. Projects must have strict argumentation and review before becoming a PPP project., Total 6,778 projects in the preparation, procurement and implementation stages were included in the management database with investment of RMB 10.1 trillion, a net increase of 862 projects and investment of RMB 1,303.6 billion compared with the data in the same statistic scope as that in the end of last quarter, a net increase of 2,505 projects and RMB 3,330.2 billion over the end of last year, a net increase of 3,138 projects and RMB 4,184.4 billion on year-on-year basis.


There were 1,301 new project entries in the quarter. Meanwhile, upon applications by provincial finance departments, 635 projects entries have been cancelled, a net increase of 666 projects in the ring growth. Compared with the end of last year, new project entries in 2017 totaled 3,933 while 973 project entries have been cancelled, implying a net increase of 2,960 project entries. It is learnt from provincial finance departments that, there were three major reasons for that. Firstly, PPP mode was no longer used for projects. Some projects were less attractive for private sectors; some projects have small total investment amount or short duration; some projects have finalized financing through other modes. Secondly, projects were halted. Due to difficulties in land acquisition, incomplete early-stage formalities or non-conformity to PPP operational process, some projects can’t move forward and have been halted by governments. Thirdly, project entries were integrated. Some projects were included in project entries repeatedly at earlier stage and then were gradually integrated and deleted recently.


(I) Growing demands for PPP projects

Number of project in management database and commercial closed is described in Figure 2-1-1 and investments are shown in Figure 2-1-2. Average new project entries in each quarter from the end of March 2016 to the end of September 2017 reached 847 with investments totaling RMB 1.2 trillion, indicating growing demand for PPP projects.

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Figure 2-1-1 Quarterly changes in project entries and commercial closed rate by stage in management database (Nr.)


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


As of the end of September, 2,388 projects were commercial closed with investment of RMB 4,092.3 billion, implying increases of 367 projects (18.2%) and RMB 795.8 billion of investment (24.1%) in the ring growth; 1,037 projects (76.8%) and RMB 1,858.8 billion of investment (83.2%) over the previous year; 1,442 projects (152.4%) and RMB 2,529.1 billion (161.8%) on a year-on-year basis. Commercial closed rate reached 35.2% at the end of September, up 0.1 ppts in the ring growth, 3.6 ppts over the previous year and 9.2 ppts on a year-on-year basis.


(II) High regional concentration

Breakdowns of project entries in management database and investment amount of all regions by stage are shown in Figure 2-2-1 and Figure 2-2-2. By number of project entries, Shandong (including Qingdao) (679), Henan (591) and Inner Mongolia (577) ranked the top three in the list and accounted for 27.2% of total. By investment amounts of project entries, Hunan (RMB 816 billion), Guizhou (RMB 774.2 billion), and Yunnan (RMB 746.8 billion) ranked the top three provinces and accounted for 23.1% of total.

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


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Figure 2-2-2 Breakdown of investment amount of project entries in management database by regions at the end of September (in RMB 100 million)


Compared with the data in the same statistic scope as that in the end of last quarter, by net increase in project entries, Hunan (87), Xinjiang (79) and Hubei (74) ranked the top three and accounted for 27.8% of total; by net investment increase, Xinjiang (RMB 256.4 billion), Hunan (RMB 123.8 billion) and Hubei (RMB 121.3 billion) ranked the top three and accounted for 38.5% of total.


Compared with the previous year, by net increase in project entries, Inner Mongolia (300), Hunan (260), and Shandong (including Qingdao) (182) ranked the top three in the list and accounted for 29.6% of total; by net investment increase, Hunan (RMB 378.6 billion), Xinjiang (RMB 347.3 billion), and Inner Mongolia (RMB 322.8 billion) ranked the top three provinces and accounted for 31.5% of total.


Compared with the same period last year, by net increase in project entries, Inner Mongolia (333), Hunan (297) and Shandong (including Qingdao) (244) ranked the top three in the list and accounted for 27.9% of total; by net investment increase, Xinjiang (RMB 414.7 billion), Hunan (RMB 410.4 billion) and Guizhou (RMB 373.5 billion) ranked the top three provinces and accounted for 28.6% of total.


Breakdown of commercial closed projects by region. As of the end of September, by number of commercial closed projects, Shandong (including Qingdao) (321), Xinjiang (216) and Anhui (173) ranked the top three and accounted for 29.7% of total. By net increase in commercial closed projects in the ring growth, Xinjiang (35) and Anhui (33) ranked the top two, and Henan (28) and Shandong (28) are tied for the third, accounting for 33.8% of total. Compared with the end of previous year, by net increase in commercial closed projects in the current year, Anhui (102), Shandong (including Qingdao) (99), and Henan (83) ranked top three and accounted for 27.4% of total. Compared with the same period last year, by net increase in commercial closed projects, Xinjiang (152), Anhui (134) and Shandong (including Qingdao) (126) ranked top three and accounted for 28.6% of total.


Breakdown of investment amount of commercial closed projects by region. As of the end of September, by investment amount of commercial closed projects, Yunnan (RMB 397.8 billion), Shandong (including Qingdao) (RMB 387.9 billion), and Guizhou (RMB 290.3 billion) ranked the top three provinces and accounted for 26.3% of total investments of commercial closed projects. By net investment increase of commercial closed projects in the ring growth, Yunnan (RMB 161 billion), Zhejiang (including Ningbo) (RMB 90.3 billion) and Hubei (RMB 72.4 billion) ranked top three and accounted for 40.7% of net investment increase in the current quarter. Compared with the end of previous year, by net investment increase of commercial closed projects in the current year, Yunnan (RMB 249 billion), Shandong (including Qingdao) (RMB 195.2 billion), and Henan (RMB 152.6 billion) ranked top three and accounted for 32.1% of net investment increase in the current year. Compared with the same period last year, by investment increase in commercial closed projects, Yunnan (RMB 311.9 billion), Shandong (including Qingdao) (RMB 215.8 billion), and Zhejiang (including Ningbo) (RMB 197.5 billion) ranked top three and accounted for 28.7% of net increase on YoY basis.


(III) High industry concentration

PPP projects and investment amounts in the management database by industry are shown in Figure 2-3-1 and Figure 2-3-2. Municipal works (2,561), transportation (931) and ecological construction and environmental protection (481) ranked the top three by number of projects and accounted for 58.6% of total; municipal works (RMB 3,198.3 billion), transportation (RMB 3,030.6 billion), and integrated urban development (RMB 1075.9 billion) ranked top three and accounted for 72.2% of total investments.

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


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Figure 2-3-2 Breakdown of investment amounts of projects in management database by industry as of the end of September (in RMB 100 million)


Compared with the previous quarter, by net increase in project entries, municipal works (313), transportation (119) and ecological construction and environmental protection (63) ranked top three and accounted for 57.4% of total net increase; by net increase in investment amount of project entries, municipal works (RMB 347 billion), transportation (RMB 334.4 billion) and integrated urban development (RMB 152.2 billion) ranked top three and accounted for 63.9% of total net investment increase.


Compared with the previous year, by net increase in project entries, municipal works (948), transportation (335) and ecological construction and environmental protection (206) made top three and accounted for 59.4% of total net increase; by net increase in investment amount of project entries, municipal works (RMB 935.1 billion), transportation (RMB 921.1 billion) and integrated urban development (RMB 357.8 billion) ranked top three and accounted for 66.5% of total net investment increase.


Compared with the same period last year, by net increase in project entries, municipal works (1,199), transportation (404) and ecological construction and environmental protection (249) ranked top three and accounted for 59.0% of total net increase; by net increase in investment amount of project entries, municipal works (RMB 1,248.2 billion), transportation (RMB1,119 billion), and integrated urban development (RMB 445.3 billion) ranked top three and accounted for 67.2% of total net investment increase on YoY basis.


Breakdown of commercial closed projects by industry. As of the end of September, by number of commercial closed projects, municipal works (1,020), transportation (320) and ecological construction and environmental protection (177) ranked top three and accounted for 63.5% of total commercial closed projects. By net increase in commercial closed projects in the ring growth, top three industries were municipal works (141), transportation (51), as well as ecological construction and environmental protection (26), representing 59.4% of total net increase. Compared to the end of previous year, by net increase in commercial closed projects in the current year, municipal works (421), transportation (134) and ecological construction and environmental protection (84) ranked top three and accounted for 61.6% of total net increase. Compared to the same period last year, by net increase in commercial closed projects, municipal works (611), transportation (191) and ecological construction and environmental protection (114) ranked top three and accounted for 63.5% of total net increase on YoY basis.


Breakdown of investment amount of commercial closed projects by industry. As of the end of September, by investment in commercial closed projects, municipal works (RMB 1,516.6 billion), transportation (RMB 1,165.3 billion), and integrated urban development (RMB 465.8 billion) ranked top three and accounted for 76.9% of total investment. By net investment increase of commercial closed projects in the ring growth, transportation (RMB 258.2 billion), municipal works (RMB 202.5 billion), and integrated urban development (RMB 142 billion) ranked top three and accounted for 75.7% of total net increase in the quarter. Compared to the end of previous year, by net investment increase in commercial closed projects in the current year, municipal works (RMB 737.1 billion), transportation (RMB 422.4 billion), and integrated urban development (RMB 282.3 billion) ranked top three and accounted for 77.6% of total net investment increase. Compared to the same period last year, by net investment increase in commercial closed projects, municipal works (RMB 1,020.3 billion), transportation (RMB 653.8 billion), and integrated urban development (RMB 312.1 billion) ranked top three and accounted for 78.5% of total net investment increase on YoY basis.


Some secondary industries of top three industries by number of commercial closed projects. As of the end of September, among secondary industries of municipal works, by number of commercial closed projects, wastewater treatment (243), municipal roads (234) and refuse disposal (88) ranked top three and accounted for 55.4% of total commercial closed municipal projects; by investment amount of commercial closed projects, rail transit (RMB 575.3 billion), municipal roads (RMB 314.1 billion) and pipe network (RMB 190.3 billion) ranked the top three and accounted for 71.2% of total investment. Among secondary industries of transportation, by number of commercial closed projects, Grade I highway (98), expressway (85) and Grade II highway (44) ranked the top three and accounted for 70.9% of total commercial closed transportation projects; by investment amount of commercial closed projects, top three secondary industries were dominated by expressway (RMB 816.9 billion), Grade I highway (RMB 160.1 billion) and others (RMB 44.2 billion) and accounted for 87.6% of total investment amount of commercial closed transportation projects. Among secondary industries of ecological construction and environmental protection, 149 comprehensive treatment projects were commercial closed with investment of RMB 222.2 billion, implying 84.2% of total commercial closed ecological construction and environmental protection projects and 90.0% of total investment amount.


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

The shares of the projects in the management database and the investment amount by three return mechanisms are shown in Figures 2-4-1 and 2-4-2. Among them, there are 1,384 user-pay projects with investment of RMB 1.6 trillion, accounting for 20.4% and 16.3% of the management database respectively; 2,715 VGF (i.e. government-and-user-pay) projects with investment of RMB 5.5 trillion, accounting for 40.1% and 54.3% of the management database respectively; 2,679 government -pay projects with investment of RMB 3.0 trillion, accounting for 39.5% and 29.4% of the management database respectively.

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Figure 2-4-1 Breakdown of projects in management database as of   the end of September by return mechanism     (Nr.)

Figure 2-4-2 Breakdown of investment in projects in management   database as of the end of September by return mechanism (in RMB 100 million)


The shares of projects and investments since the same period in previous year by three return mechanisms are shown in Figures 2-4-3 and 2-4-4 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 2-4-3 Comparison of shares of projects in management database by return mechanism


2-4-4.png 

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


Compared to the end of previous quarter, the number of user-pay projects decreased 19, VGF and government-pay projects increased 525 and 356; the investment amount user-pay projects decreased RMB 141.2 billion, VGF and government-pay projects increased RMB 1,106.3 billion and RMB 338.5 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 92, 1,232 and 1,181, with a net investment increase of RMB 40.7 billion, RMB 2,158.9 billion and RMB 1,130.5 billion respectively. Compared to the same period in previous year, the numbers of net project entries increase of user-pay, VGF and government-pay projects were 229, 1,446 and 1,463, with a net investment increase of RMB 196.9 billion, RMB 2,530.5 billion and RMB 1,457.1 billion respectively.


Commercial closed projects. 483 user-pay commercial closed projects with an investment of RMB 531.9 billion were recorded, representing 20.2% and 13.0% of total commercial closed projects and investments respectively; 870 VGF commercial closed projects with an investment of RMB 2,257.8 billion were recorded, representing 36.4% and 55.2% of total commercial closed projects and investments respectively; 1,035 government-pay projects with an investment of RMB 1,302.7 billion were recorded, representing 43.3% and 31.8% of total commercial closed projects and investments respectively, as shown in Figures 2-4-5 and 2-4-6.

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Figure 2-4-5 Structural analysis of commercial closed projects by return mechanism as of the end of September


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Figure 2-4-6 Structural analysis of investment in commercial closed projects by return mechanism as of the end of September (in RMB 100 million)


The numbers of net commercial closed projects increase of user-pay, VGF and government-pay projects were 25, 174 and 168, with the change of commercial closed investment of RMB 1.5 billion decrease, RMB 522.2 billion increase and RMB 275 billion increase respectively; compared to the end of previous year, the numbers of net commercial closed projects increase of user-pay, VGF and government-pay projects in the current quarter were 118, 418 and 501, with net commercial closed investment increase of RMB 74.7 billion, RMB 1,143.4 billion and RMB 640.6 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 201, 553 and 688, with net commercial closed investment increase of RMB 161 billion, RMB 1,530.7 billion and RMB 837.3 billion respectively.

 

III. Analysis of PPP market structure


(I) More private enterprise-involved industries over the previous year


Analysis from the perspective of type of private sectors. As of the end of September, 572 commercial closed national demonstration projects had 316 with exclusive private capital and 256 with a consortium led by private capital. There were 944 private partners signing PPP contracts, in which 175 partners were private-owned, 153 were private holding, 25 from Hong Kong, Macao and Taiwan, China, 15 from foreign countries, 300 were state-owned, 249 were state holding, and another 27 enterprises with undefined category. There were 328 private-owned and private holding partners, accounting for 34.7% (see Figure 3-1-1), 2.3 ppts lower than that as of the end of the previous month, and 4.2 ppts lower than that as of the end of the previous year.

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Figure 3-1-1 Identification and proportion of 865 private sector partners


Analysis from the perspective of fields with the presence of private enterprises. There were a total of 270 projects with exclusive private capital and a consortium led by private capital, accounting for 47.2% of commercial closed projects, 1.3 ppts lower in the ring growth, 3.0 ppts lower than that as of the end of the previous year. Private-owned and private holding partners were involved in 17 industrial sectors, as described in Figure 3-1-2. There were 108 municipal works projects, 30 ecological construction and environmental protection projects, 20 senior care projects, 15 water conservancy projects, 14 healthcare projects, 14 education projects, 13 integrated urban development projects, 12 transportation projects, 10 energy projects, and 10 science and technology projects. Each of the remaining sectors had less than 10 projects. The number of fields involved by private-owned and private holding partners increased 2 in the ring growth, and 4 more than the end of precious year.

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


(II) Commercial closed investment in happiness industry accounted for over 10%

The main scope of the happiness industry covers culture, sports, healthcare, senior care, education, and tourism. As of the end of September, the happiness industry recorded 1,321 projects with investment of RMB 1,089.7 billion in management database, representing 19.5% and 10.8% of total projects and investments. By the number of projects, education (321), tourism (306), and healthcare (258) ranked the top three; by investment amount, tourism (RMB 416.6 billion), healthcare (RMB 157 billion), and education (RMB 156.4 billion) ranked the top three.


Compared to the end of previous quarter, the happiness industry saw a net project entries increase of 172 and a net investment increase of RMB 164.8 billion; a net project entries increase of 494 and a net investment increase of RMB 428.2 billion, compared to the end of previous year. See Figure 3-2-1 and Figure 3-2-2.

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Figure 3-2-1 Project entries in management database in the happiness industry (Nr.)


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


In terms of commercial closed projects, as of the end of September, the happiness industry recorded 389 projects with an investment of RMB 332.9 billion, representing 16.3% and 8.1% of total commercial closed projects and investments. Compared to the end of previous quarter, net commercial closed projects increased 71, with investment of RMB 49.1 billion; compared to the end of previous year, net commercial closed projects increased 199, with investment of RMB 151.7 billion.


(III) Green and low-carbon projects receive attention


PPP projects in a number of fields, including public transportation, water supply and drainage, ecological construction and environmental protection, water conservancy, renewable energy, education, science and technology, culture, senior care, healthcare, forestry and tourism, play a role in promoting a green and low-carbon economic structure. According to such a criterion, there were 3,829 green and low-carbon projects in management database with investment of RMB 3.9 trillion as of the end of September, accounting for 56.5% and 38.4% of national totals respectively. Compared to the end of previous quarter, the net project entries increase was 466 with a net investment increase of RMB 467.6 billion, a decrease by 0.4 ppts for both. Compared to the end of previous year, the net project entries increase was 1,357 with a net investment increase of RMB 1,167.9 billion, a decrease by 1.4 ppts and 1.6 ppts respectively. The change trend of the green low-carbon projects and investment in the management database in this year is shown in Figure 3-3-1.

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Figure 3-3-1 Change trend of the green low-carbon projects and investment in the management database in this year (Nr.)


As of the end of September, the commercial closed green and low-carbon projects totaled 1,373, with an investment of RMB 1,588.9 billion and the commercial closed rate of 35.9%, accounting for 57.5% and 38.8% of national total respectively. Net commercial closed projects increase totaled 197 with an investment of RMB 233.3 billion and the increase of 0.9 ppts in commercial closed rate, compared in the ring growth. Net commercial closed projects increase totaled 581 with an investment of RMB 759.3 billion and the increase of 3.8 ppts in commercial closed rate, compared to the end of previous year.


(IV) Western China had a greater demand for PPP mode

Comparison of projects in the eastern, central, western and northeastern China regions and investments in management database are shown in Figure 3-4-1 and Figure 3-4-2 respectively. The number of projects in the eastern, central, western and northeastern China regions in management database was 1,949, 1,868, 2,687, and 270, representing 28.8%, 27.6%, 39.7%, and 4.0% of total projects respectively. The investment in projects stood at RMB 3.0 trillion, RMB 2.4 trillion, RMB 4.2 trillion, and RMB 0.6 trillion, representing 29.5%, 23.7%, 41.4% and 5.5% of total investments respectively.

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Figure 3-4-1 Comparison of statistics of projects in management database in four segments as of end of September


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Figure 3-4-2 Comparison of statistics of investment in projects in management database in four segments as of end of September (in 1 trillion RMB)


Compared to the end of previous quarter, projects in four segments saw changes of a net increase of 212 projects in eastern, 330 in central, 297 in western, and 19 in northeastern respectively, and a net investment increase of RMB 298.2 billion, RMB 442 billion, RMB 490.9 billion and RMB 70.1 billion respectively; compared to the end of previous year, the numbers of net increase of projects were 625 in eastern, 802 in central, 1,038 in western, and 37 in northeastern respectively, with net investment increase of RMB 806.4 billion, RMB 916.1 billion, RMB 1,513.4 billion and RMB 93.6 billion, respectively; compared to the same period in previous year, the numbers of net increase of projects were 813 in eastern, 943 in central, 1,322 in western, and 57 in northeastern respectively, with net investment increase of RMB 1,037 billion, RMB 1,123.6 billion, RMB 1,890.9 billion and RMB 130.7 billion, respectively.


In terms of commercial closed projects, as of the end of September, the numbers of commercial closed projects in the eastern, central, western and northeastern China regions were 917, 565, 796 and 110, representing 38.4%, 23.7%, 33.3%, and 4.6% of total commercial closed project. The investment in commercial closed projects stood at RMB 1,591.3 billion, RMB 807.3 billion, RMB 1471 billion and RMB 222.8 billion, representing 38.9%, 19.7%, 35.9%, and 5.4% of total investments, respectively. Compared in the ring growth, commercial closed projects in four segments saw changes of a net increase of 113 projects in eastern, 119 in central, 119 in western 16 in northeastern respectively, as well as changes in investments of a net increase of RMB 209.3 billion in eastern, RMB 211.1 billion in central, RMB 311.2 billion in western and RMB 64.3 billion in northeastern respectively; compared to the end of previous year, the commercial closed projects in four segments in this year saw a net increase of 349 projects in eastern, 310 in central, 342 in western and 36 in northeastern, respectively, and a net investment increase of RMB 617.8 billion, RMB 447.6 billion, RMB 661.8 billion and RMB 131.6 billion, respectively; compared to the same period in previous year, the numbers of net increase of commercial closed projects in four segments were 484 projects in eastern, 384 in central, 517 in western and 57 in northeastern, respectively, and a net investment increase of RMB 913.6 billion, RMB 533.2 billion, RMB 927.7 billion and RMB 154.6 billion, respectively.


(V) PPP commercial closed investment sharing 3.9% in fixed asset investment from January to August


The latest data of fixed asset investment currently published by National Bureau of Statistics was as of the end of August 2017. From January to August 2017, the accumulated fixed asset investment totaled RMB 39.4 trillion, and the accumulated investment in new commercial closed PPP projects totaled RMB 1.5 trillion in the same period nationwide, with the latter accounting for 3.9% in the former.


In terms of regional development, from January to August, in the eastern, the investments in commercial closed PPP projects reached RMB 562.5 billion and RMB 16,775.9 billion in the investment in fixed assets in the region, accounting for 3.4%; in the central, the investments in commercial closed PPP projects reached RMB 381.6 billion and RMB 10,129.1 billion in the investment in fixed assets in the region, accounting for 3.8%; in the western, the investments in commercial closed PPP projects reached RMB 472.4 billion and RMB 10,361 billion in the investment in fixed assets in the region, accounting for 4.6%; in the northeastern, the investments in commercial closed PPP projects reached RMB 124.1 billion and RMB 1,893.7 billion in the investment in fixed assets in the region, accounting for 6.6%.


(VI) Nearly 40% of the commercial closed projects have started

As of the end of September, 914 commercial closed projects have been started, accounting for 38.3% of the total number. The number of projects started and the proportion of the total number are shown in Figure 3-6-1. Among them, Shandong (including Qingdao) has started 228 projects, accounting for 71.0% of the total number of commercial closed projects in the province; 84 have been started in Sichuan, accounting for 54.5% of the total number in the province; 68 have been started in Xinjiang, accounting for 31.5% of the total number in the province; 63 have been started in Anhui, accounting for 36.4% of the total number in the province. The number of projects started in remaining provinces is less than 50.

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Figure 3-6-1 Projects started construction and the proportion of the total number by province as of the end of September


FROM: China PPP Center

EDITER: VIEW:2225

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