From November 7th to 9th 2019, the Second Annual Conference of ‘Global PPP 50’Forum, supported by Ministry of Finance of China and Peking University (PKU), was organized by Peking University PPP Research Center. The event is themed under “Remain true to original aspiration and keep mission firmly in mind for a more standard PPP community and regulated PPP growth”, echoing to the spirit of the fourth plenary session of the 19th Central Committee CPC. This forum distinguishes itself with a wide array of topics centered of PPP reform, which all address the crux and tricky issues in PPP, including budget management, financing support, PPP projects in One Belt, One Road Initiative, environment protection, with an aim to jointly promote the healthy and quality growth of PPP in China, unleash the benefits enabled by reforms, ultimately to foster stronger confidence in the community on culture, theory and path.
The forum is presided over by Deng Bing, Executive Director and Secretary General of PPP Research Center of Peking University. Hao Ping, President of Peking University, delivers an opening remark on behalf of the organizer. Gu Shengzhen, Vice Chairman of the 13th National Committee of the Chinese People's Political Consultative Conference National, Lou Jiwei, former Minister of Finance and President of Society of Public Finance in and Shi Yaobin, Chairman of the Budget Commission of the Standing Committee of the National People's Congress, attend and deliver speeches. Sun Qixiang, Director of the PPP Research Center of Peking University, summarizes the forum with a closing remark.
The keynote speakers of the forum include:
Gao Peiyong, Vice President of the Chinese Academy of Social Sciences (CASS),
Li Yang, Chairman of the National Institution of Finance and Development,
Jiao Xiaoping, Party Secretary and Chairman of the China PPP Center,
Florence Yean Yng, Deputy Dean of the National University of Singapore,
Feng Jinping, Chairman of the China PPP Fund,
Hou Feng, Chairman of China Water Environment Group.
On behalf of the organizer, Hao ping, President of the Peking University, kicks off the forum with an opening speech. He says, the fourth plenary session of the 19th Central Committee CPC reviewed and adopted the CPC Central Committee's decision on some major issues concerning how to uphold and improve the system of socialism with Chinese characteristics and advance the modernization of China's system and capacity for governance. The session and its spirit paves way for PPP growth in China and PPP itself, in turn, is a key move to implement the spirit and serves as a big institution innovation contributing to the advancement of modernization of China's system and capacity for governance. Since the founding of the PPP Research Center in 2017, Peking University has been dedicated to the PPP research reflecting the key issues in PPP reform and they are committed to offer the public and PPP community with influential findings, solutions and most importantly new talents. The First Global PPP 50’Forum 2018, which aims to bring together leading global thinkers to discuss the future PPP development in China and beyond, is just one of the many events showcasing our efforts to fulfill the above vision. Going forward, Peking University would keep an open door to global community to advocate more innovation in PPP reform and share China’s experience to the global PPP growth.
(Hao Ping, President of the Peking University)
Gu Shengzu, Vice Chairman of the 13th National Committee of the Chinese People's Political Consultative Conference National, gives a keynote speech entitled How to Better Involve and Activate Social Capital. In the speech, he expresses, now the downward pressure on economic growth has increased, which means pursuing steady growth is more important than ever. To raise market expectation, investor’s confidence and lift private investment would still be at the heart to ensure steady growth. In view of this, one crucial move would be to further boost the role of private investment, facilitating and enabling more sustainable, stable and profitable PPP projects available. Additionally, increased capability of project financing and project operation would give private investor more motivation in PPP involvement, while intensifying contractual spirit and law protection to social capital could incentivize them on the PPP delivery with more assurance.
（Gu Shengzu, Vice Chairman of the 13th National Committee of the Chinese People's Political Consultative Conference National）
Lou Jiwei, former Minister of Finance and President of Society of Public Finance in China, delivers a themed speech Pursuing a steady and sustainable PPP prospects with China-based solution. He firstly takes a look back to China’s PPP development history and says at the moment the new normal and quality growth of economy has helped regulate PPP supervision, mitigate and transfer PPP-related risks. One key move to better coping with PPP risks is to pursue a steady and sustainable PPP growth with a focus on performance-driven and adopting the best possible solution. This would facilitate more PPP application and delivery and thus improve the quality supply of public service.
（Lou Jiwei, former Minister of Finance and President of Society of Public Finance in China)
Shi Yaobin, Chairman of the Budget Commission of the Standing Committee of the National People's Congress, states in his addressing that the ongoing and sustainable PPP growth in China is supported by a more well-placed framework and a stronger foundation. The fourth plenary session of the 19th Central Committee CPC reviewed and adopted the CPC Central Committee's decision to advance the modernization of China's system and capacity for governance. What PPP could help here is PPP itself is a solution to that goal and a complement to the national public service system. Sensing that great potential, we should ramp up efforts to foster a better understanding to the significance of PPP and a more regulated and standard environment for its delivery.
Gao Peiyong, Vice President of the Chinese Academy of Social Sciences (CASS), shares his idea of PPP growth with a historical view and overall view in his speech that at this moment, where PPP future hold lies in the combination of the supply-side reform and countercyclical adjustment policy, since China’s economy now is in the quality growth stage while the rapid PPP growth was driven by the rapid and fast economic growth in that stage. This means the heart of gearing up for current and future PPP solution need to be based on economic quality growth and supply-side reform.
（Gao Peiyong, Vice President of the Chinese Academy of Social Sciences (CASS)）
Li Yang, Chairman of the National Institution of Finance and Development, upholds that PPP is closely related the macro economic performance and is a sophisticated tool that calls for great collaboration and synergy of all relevant parties. How to have a better functioning PPP in China? Our answer to that should come from and be align to the national strategy President Xi put forward and in the global context. What we could do to move this agenda forward right now is to learn the global experience and lessons, advocate innovation, improve supply-side reform of financing industry and further open up.
（Li Yang, Chairman of the National Institution of Finance and Development）
Jiao Xiaoping, Party Secretary and Chairman of the China PPP Center, expresses that China now is the biggest PPP market globally through the five-year’s reform, making PPP, covering and benefiting 19 industries, a key supply approach in public service in China. This is secured by the efforts that we make the PPP reform in China, rather than only a financing tool for the project, but a systematic and comprehensive reform. To empowering PPP reform’s role in the modern financial system, crucial actions would be taken forward to in the following five aspects. Firstly, improving counter-cycle policy to release more room for PPP growth; Secondly, enhance coordinated cooperation to address the structural supply shortage; thirdly, top financial performance in PPP; fourthly, improve risk prevention and regulated market; fifthly, intensify the government’s leading role to create a more enabling business environment.
（Jiao Xiaoping, Party Secretary and Chairman of the China PPP Center）
Florence Yean Yng, Deputy Dean of the National University of Singapore, shares Singapore PPP projects in her keynote speech. She stresses that it is important to evaluate the feasibility of PPP and summarizes three PPP-N/A settings for infrastructure projects. They respectively are, public industry possesses sufficient fiscal fund, public industry would need to provide low-priced public service and product and public industry has what it takes to getting hold of the necessary expertise, and ongoing-innovation.
（Florence Yean Yng, Deputy Dean of the National University of Singapore）
Feng Jinping, Chairman of the China PPP Fund, emphasizes in his speech that PPP works as an important institutional tool to forward modernization of China's system and capacity for governance. PPP application in public filed carries great significance both on the operational and strategic level, especially in the context that now supply-side reform pursues changes in quality, efficiency and growth driver of economic advancement. Going forward, China PPP fund, as the first and only national-level PPP fund, would strive for a quality growth of PPP in China, in an effort to set out a more efficient supply mechanism of public service and product.
（Feng Jinping, Chairman of the China PPP Fund）
Hou Feng, Chairman of China Water Environment Group, introduces water environment protection and the PPP application in this field in his keynote speech. He says that PPP provides a whole-industry-chain approach to environmental treatment project which usually calls for systematic and coordinated effort required by its long project cycle and high complexity. Additionally, PPP helps to bolster innovation as well as the improvement of investment efficiency and quality. These potentials could help us for a comprehensive PPP-based solution to improve China’s overall water environment.
（Hou Feng, Chairman of China Water Environment Group）
Sun Qixiang, Director of the PPP Research Center of Peking University, makes a closing remark. ‘Global PPP 50’Forum brings together global top thinkers and experts to discuss and share ideas, practices and latest research to press ahead global PPP advancement. She holds that advocating PPP in China could better coordinate the role of government and market, thus to improve the quality and efficiency of public service through an empowered public governance system, ultimately to deepen financial and tax system, expediate the transformation of government function and advance the modernization of China's system and capacity for governance. To fulfill these vision, a systematic, comprehensive solution to address the conflicts in PPP would be an effective step, in the spirit of materialist dialectics principle. She stressed that there still a long way to go for China’s PPP. PPP, like any new and emerging thing, would present both tremendous opportunity and challenges in the rapid growth stage and will eventually embrace new opportunities when stepping into the quality growth stage.
（Sun Qixiang, Director of the PPP Research Center of Peking University）
PPP Research Center PKU releases part of its research in 2019 in the conference, including Peking University China PPP Index 2018, Peking University, The Bluebook: A Report of PPP Market in China 2019, Global PPP History Evolution and Development -From of International Comparative Perspective, Research of Insurance Fund on PPP Development Methodology.
（Deng Bing, Executive Director and Secretary General of PPP Research Center of Peking University）
Sun Qixiang, Director of the PKU PPP Research Center, Jiao Xiaoping, Party Secretary and Chairman of the China PPP Center, Dong Degang, Deputy Director General of Financial Department, Ministry of Finance Ministry of Fiance, and Dong Zhiyong, Dean of PKU School of Economics, are invited for the above research release.
Research release of PKU PPP Center
(Starting from the left: Dong Degang, Jiao Xiaoping, Sun Qixiang, Dong Zhiyong）
This event attracts about 300 delegates from Ministries, local finance authorities, PPP leading enterprises, financing institution, PPP academics, etc.
（The 2nd Annual Conference of ‘Global PPP 50’Forum 2019）
FROM： PPP Research Center of Peking University