PPP Promotes Sustainable Development Jiao Xiaoping China Public - PowerPoint PPT Presentation

PPP Promotes Sustainable Development Jiao Xiaoping China Public Private Partnerships Center Ministry of Finance, People’s Republic of China September, 2019

China's PPP Practice PPP in China = Governance + Project Management Macro-Level Modernization of national governance system and governance capacity Micro-Level Meso-Level （ Value For Money ） • Reform of administrative system • Risk Sharing • Reform of fiscal system • Full Competition • Reform of investment and • Fiscal Affordability financing system • Transparency • Whole life-cycle management • Performance-based payment

China's PPP Practice Value for Money Regulatory Capacity Demonstration Framework Building Projects Government, Market, Community

Regulatory Framework China's PPP Practice Law Policy Guideline Contract Standard • PPP Operating • PPP Project • PPP Contract Guidelines • Budget Law (amended) • Guide on Guidelines Identification Criteria • PPP Contract Case Study • Government Provincial Government • PPP Contract Guidelines (Economy, Techniques, • Standard PPP Contracts Procurement Act • PPP Project Procurement Finance, etc.) Debt Management For Various Sectors (amended) & its Guidelines • Output Criteria • Guide on Promoting (being formulated) • PPP VFM Assessment • Performance –based Enforcement Guidelines Payment Criteria PPP in Public Service Regulations • PPP Fiscal Affordability • PPP Law (being • Notice on Promoting Assessment Guidelines formulated) PPP • Notice on PPP Financial Management

China's PPP Practice Business Case • Optimize feasibility study and project structure. • Incorporate maket responses to come up with a optimal implementation plan. Value For Money Evaluation • Eveluate whether a PPP is likely to offer better value for the public than traditional public procurement. Fiscal Affordability Assessment • Set a 10% cap: local government spending on all PPP projects within its jurisdiction must not exceed 10% of general public budget expenditure. • Establish the national online monitoring system on fiscal affordability of 2,584 cities/counties. The number of cities/counties exceeding the 10% cap decrease from 253 to 27 after the application of the monitoring system.

Regulatory Framework China's PPP Practice Institution transformation: build a rule-of-law, service- oriented, and transparent government Led by the Ministry of Finance, cooperate with other line ministries Establish PPP Centers/Units at national, provincial, municipal level Build up PPP Integrated Information Platform to improve information disclosure Involve PPP consulting agencies Improve corporate social responsibility

Regulatory Framework China's PPP Practice l Carried out four batches of demonstration projects from 2014 to 2017. l 978 projects, total investment 295.3 billion USD. l 908 reached the commercial close (92.8%). 2017 2016 2015 2014 4 th Batch 382 projects 3 rd Batch 100.5 billion USD 421 projects 127.2 billion USD 2 nd Batch 157 projects 64.6 billion USD 1 st Batch 18 projects Demonstration Projects 7.3 billion USD Case Studies

The Largest PPP Market Elderly Care, 104, Agriculture, 76, 1% Forestry, 57, 1% Technology, 131, Energy, 119, 1% Sports, 118, 1% Social Security, 35, 1% 1% Impacts 0% Affordable Others, 138, 2% Housing, 154, 2% Culture, 194, 2% Government Infrastructure, 198, 2% • Increase public service supply Healthcare, 263, Municipal 3% Engineering, 3,618, 40% Tourism, 319, 4% • Improve efficiency Water, 380, 4% • Optimize supply chain • Create innovative models (EOD etc.) Education, 430, 5% Urban Development, 583, 6% Environmental Protection, 896, Transportation, 10% 1,291, 14% u 19 Sectors Total Projects: 9,104 u 5,896 projects reach the commercial close preparation, procurement and implementation total investment 1.26 trillion USD Total Investment: 1.92 trillion USD 8

China's PPP Market: Global Assessment China’s PPP Institution and Practices ranks upper-middle globally • World Bank : Procuring Infrastructure PPPs 2018 assesses the regulatory frameworks and recognized good practices that govern PPP procurement across 135 economies. • In the assessment, the score for China’s PPP Procurement, Contract Management and Preparation is higher than the average of high-income group and upper-middle-income groups. China High-income Upper-middle-income Lower-middle-income Low-income 90 82 77 76 80 66 70 64 63 63 61 58 58 57 60 54 54 53 52 48 47 47 50 44 39 40 30 20 10 0 PPP PROCUREMENT CONTRACT MANAGEMENT PPP PREPARATION UNSOLICITED PROPOSAL…

China's PPP Practice • Build a community with a shared future for mankind. • Uphold the principle of extensive consultation, joint contribution and shared benefits. • Support the implementation of the UN 2030 Agenda for Sustainable Development. --- President Xi Jinping • New International Governance • Multilateral Cooperation • Bilateral Exchange

China's PPP Practice The UNESCAP's Infrastructure Financing and PPP Network e g d e l w o n K Share PPP & Infrastructure policies and good practices to improve capacity building. t c e j o r P Exchage project information to enhance transparency and facilicate project transcations. t n e m t s e v n I Bridge the investment from private sector to improve infrastructre financing.

PPP promotes UN 2030 SDGs Mobilize resources from three aspects: government, private sector and community. Leverage two markets to facilate infrastructure development: domestic financing and international financing. Use PPP as an effective tool for the UN 2030 SDGs.

Case I GUIYANG Nanming River Water Environment Treatment Project

• 7 new sewage treatment plants (4,450,000 ton/day) • A new sludge disposal center (500 ton/day) • Sewage interception gutter renovation(52183 m in length, 40 exhaust ports transform) • Channel cleanout （ 1,136,600 m 3 ） • Eco-restoration project （ ecology gravel bed 45000m 2 ， wetland 65000m 2 ， aquatic plant 2500m 2 ， 4 set of permeable dike ） n o i t c • Construct river information supervision system u r t s n o C Sewage and sludge operation period Contract • Clean 25 drainage basins of Huaxi River 30 years Period River comprehensive treatment Operation service period 10 years BOT+ TOT P r o c u r Open Tendering e m Return e n Mechanism t : Viability Gap Funding sewage treatment income Investment +government-pay Type 401 million USD + Brown Project + Green project

Output Comparison 35% Planned investment : 625 million USD Actual investment:404 million USD 221 million USD less Environment Protection u Comprehensive treatment u Energy saving u Productivity improvement u Quality service BEFORE AFTER

Case II YUNNAN Yuanmou Efficient Water-saving Project

Case II YUNNAN Yuanmou Efficient Water-saving Project 75,992,000 m 2 Project Investment 300 Million RMB Project Area Project Covers 110 Villiages across 4 towns • Two multi-level water intakes Project includes • 32.33km main water conveyance pipeline • 156.58km branch main water conveyance pipeline • 266.2 km branch main water distribution pipeline • 345.33 km branch water distribution pipeline Poverty Reduction Project Benefits • Water usage per Mu (1 Mu = 666.6 m 2 ) decrease from 1259 to 350 RMB • Farmers's income increase by 5000 RMB/Mu Crop Growth in the Project Area • Water saved by 21.58 million m 3 /year

Case III GUIZHOU Wudang District Educational Facilities, Equipment and Logistics Services Project

Case III GUIZHOU Wudang District Educational Facilities, Equipment and Logistics Services Project Investment : 325.46 million RMB Project duration : 10 years 3 Sub-projects: Wudang nine-year school (11443.28 m 2 ) Wudang Shuitian middle-school(66667.19 m 2 ) Wudang Zhenxin kindergardern(3364.68 m 2 ) Equal Access to Education Project Benefits • Improve learning conditions of local children: 720 infants, 810 pupils, 1,800 middle-school students and 900 high-school students. • Raise the standard of running a school facility in the suburb rural areas. • Ease the tension between suburb and downtown residents regarding enrollment. • Increase the housing price of the surrounding areas. Wudang District Zhenxin Kindergardern

Case IV GU'AN Industrial Park Project

Case IV GU'AN Industrial Park Project Investment: 8.3 Billion RMB Type: BOT Duration: 30 years Contents: land arrangement, infrastructure development, public facilities, industry development, and urban operation. Economic Growth Project Benefits Poverty Alleviation • Helps Gu’an transform itself from an agricultural society to a modernized industrial city. • Increase fiscal revenue by hundred times. • Introduce over 600 companies and 30 + universites and research institutions. UN Economic Commission for Europe Listed Gu'An in GU'AN Industrial Park case studies of PPP Smart and Sustainable Cities.

THANKS Website ： http://www.cpppc.org/en/index.jhtml Wechat Account ：道 PPP Email: jiaoxiaoping@cpppc.org Official Website Official WeChat Account xiefei@cpppc.org