2021-12-07

Controlling Risks by Standardization and Promoting Development by Innovation for A New Era - A Summary Speech at the 4th China PPP Financing Forum

(12-DEC-2018)


Jiao Xiaoping from PPP Center of Ministry of Finance

November 23, 2018, Shanghai

 

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Dear friends, ladies and gentlemen,


Good afternoon!


I would like to thank all of you for your dedication. The two-day forum, including one policy discussion, three project presentations, and seven round-table symposiums, was colorful and exciting; representatives from 13 countries, 8 industry ministries, 34 provincial administrative regions, and 7 international organizations attended the conference; 29 corporations were present, more than 30 media participated in the exhibition, 1200 field audiences attended the event, and over one million people watched it online. During the past two days, everyone has been thinking, arguing, reflecting, and looking forward, busily but happily, so that we might unfortunately lose the opportunity to appreciate the beauty of the Huangpu River in Shanghai. Next I will briefly review this forum.


I. The main viewpoints shared by the representatives of the round-table forum

 

During seven sub-forums, more than 60 experts from both home and abroad shared their ideas.


At the symposium on “Eco-environment Governance by PPP”, it was widely believed that PPP, as an important mechanism for implementing the “two mountains” theory of the President Xi, has facilitated a large number of environmental governance projects and created many new models, forms and technology. However, we are also facing the difficulties such as imperfect performance appraisal system and unclear investment return mechanism. It is recommended to further improve performance indicators and optimize the methods of fiscal expenditure.

 

At the symposium on “Building PPP’s Belt and Road”, it was widely believed that the “Belt and Road Initiative” has a vast market and great potential. China’s PPP management model is compatible with international common practices, helping Chinese enterprises to “go global”, but we should also focus on risks involving politics, policies, and technical standards.

 

 At the symposium on “Supporting Poverty Alleviation and Rural Revitalization by PPP”, it was widely believed that industry development is an important means to get rid of poverty. We should break the bottleneck of mechanism, market and capital by the innovative mechanism of PPP model; in terms of rural revitalization, we must attach importance to planning, technology and management in addition to just channeling funds.

 

At the symposium on “Risk Prevention and PPP Financial Innovation”, it was widely believed that we must stick to the “bottom line of 10%” with the government taking the lead in fulfilling the contract. In deleveraging of social capital, the policies should be formulated to solve the problem of insufficient capital of the companies engaged; financial institutions should not simply transfer the risks, but share the risks by innovation models.

 

At the symposium on “Stepping into the Era of PPP Big Data”, it was believed that the PPP model is in connection with the government, market and the public, which is a complex integration with long investment cycle and large amount of information. To achieve the goal of government regulation, adequate information disclosure, and market-oriented services, we must build a more powerful and intelligent comprehensive information platform by cutting-edge information technology.

 

At the symposium on “Facilitating New Park Construction by PPP Model”, it was widely believed that the new park construction model is a mechanism-based PPP model, which optimizes resource allocation on a larger scale, better reflects the overall development, systematicness and coordination of development, and makes the most of economic scope. However, we must keep an eye on the boundary between the government and market, focus on the distribution of rights, responsibilities and interests, and pay attention to the assessment of financial performance.

 

At the symposium on “Create A Better Life through PPP Model”, it was believed that we should make full use of the innovation mechanism of PPP market, increase the supply of diversified, multi-level and high quality public services, reach the goal of reflecting people’s wishes and result orientation, and address the situation where the projects emphasize more on construction and less on operation. At the same time, in terms of the finance, we must stick to the principle of doing our best according to our abilities.

 

II. consensus and expectation


By summarizing the viewpoints from all parties at the forum, some consensus and expectation have been formed. First, follow the guide of The Thought on Socialism with Chinese Characteristics for a New Era by General Secretary Xi Jinping with supply-side structural reform as the main task, continue to deepen reforms and taking a path of high-quality. Second, seize the historical opportunity of the new era, actively regulate the PPP model, and increase the supply of diversified, multi-level and high quality public services. Third, obey the rules and keep the bottom line; the government, financial institutions, and social capital need to jointly prevent risks for the sustainable development of PPP. Fourth, unify the top-level design, speed up the PPP regulations introduction and the integrated market construction, in order to prevent generalization and alienation from the origin. Fifth, the policies made by ministries should maintain continuity, which will stabilize market expectations, and enhance the confidence of the investors. Sixth, further promote international cooperation, strengthen experience exchange and mutual support, and facilitate the implementation of the “Belt and Road Initiative” projects. Seventh, improve the information platform by making full use of the cutting-edge information technology, enhance the supervision of the services, raise the quality and level of information disclosure, and increase the efficiency of resource allocation.

 

III. Extending Thanks

 

With the joint efforts of all, this forum has achieved the expected goals. Thanks to the support of Shanghai Municipal Finance Bureau and the Shanghai Financial Association! Thanks to the support of UNESCAP, Ministry of Culture and Tourism, Yunnan Provincial Department of Finance, and Hohhot City! Thanks to the support of Peking University, University of Chinese Academy of Sciences, Central University of Finance and Economics, Shanghai University of Finance and Economics, Shanghai Jiaotong University! Thanks to all the participants for sharing your ideas and insights in each session! Thanks to the People’s Daily, Xinhuanet, China Economic Weekly, China Financial and Economic News, China Business Network and other media for their attention and coverage! Thank you all!

 

Finally, I wish you all a smooth return trip! See you next year at the 5th PPP Financing Forum!

 

Thanks!

 

Photographed by Xiao Yi from China Economic Weekly

Source: PPP Center of Ministry of Finance


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