China encourages more private investment in PPP projects

BEIJING — China's top economic planner has moved to attract more private investment to infrastructure construction and public service projects.

The National Development and Reform Commission (NDRC) on Thursday said local governments are advised to provide better services and more subsidies for private businesses that participate in public-private partnership (PPP) projects.

A document released by the NDRC called for a sound business environment to be created and for all infrastructure sectors, except those under access restrictions, to be open to private investment.

The NDRC promised more financial support, including helping private investors raise funds by bond issuance and asset securitization.

China is pushing the PPP model to reduce government debt burdens and improve efficiency, but has only seen a tepid response from private businesses, partly due to low returns and difficult risk control.

As of the end of September, 6,778 PPP projects were under construction with total investment at around 10 trillion yuan (around $1.5 trillion).