The government and social capital cooperation (PPP) model is an important investment and financing model innovation in the public domain such as infrastructure and public services. It is also an important starting point for supply-side reform in the public domain and represents the direction of market-oriented reform and industrialization in the public sector. Promoting the use of the PPP model is conducive to expanding the supply of public services and improving service efficiency.
In mid-2018, after the PPP project was halted by the state on a large scale, after the system, policy and landing level regulations, since 2019, the PPP model has begun to become an operation model for more and more infrastructure construction projects, from the national policy orientation Therefore, the public sector should actively promote the PPP model and encourage local governments to use the PPP model.
Paying attention to the investment, approval and implementation of PPP projects, in a sense, also represents the implementation of downstream construction projects in the Chinese construction machinery industry. The rhythm of PPP project approval and investment space in the future also indicate to a certain extent. The landing rhythm and capital availability of downstream projects in the Chinese construction machinery market.
As of April 28, 2020, the top 15 PPP projects in the statistics of the National Development and Reform Commission were 506 in Guangdong with a total investment of 491.4 billion yuan, 493 in Guizhou with a total investment of 719.4 billion yuan, and 491 in Anhui with a total investment 463.6 billion yuan, 456 in Shandong, total investment of 350.8 billion yuan, 453 in Zhejiang, total investment of 852.3 billion yuan, 436 in Sichuan, total investment of 810.789 billion yuan, 413 in Hubei, total investment of 491.95 billion yuan, 411 in Jiangxi, total investment 378.356 billion yuan, 352 in Henan, total investment 368.133 billion yuan, 349 in Yunnan, total investment 650.88 billion yuan, 262 in Shaanxi, total investment 251.676 billion yuan, 239 in Guangxi, total investment 330.79 billion yuan, 221 in Jiangsu, total investment 486.903 billion yuan, 215 in Hunan, with a total investment of 313.213 billion yuan, 175 in Liaoning, with a total investment of 161.65 billion yuan.
The top five in the number of PPP projects are 2803 urban infrastructure, total investment of 417.15 billion yuan, 888 agriculture, forestry and water conservancy, total investment of 819.1 billion yuan, 817 social undertakings, total investment of 590.2 billion yuan, transportation 776, total investment 2.187 trillion yuan, 755 environmental protection, total investment of 380.7 billion yuan. The number of projects in the above five industries accounted for 43% of the total number of projects and 43% of the total investment.
The progress of the PPP project is as follows: 1578 in the necessity and feasibility demonstration stage, with a total investment of 24618 billion yuan; 1093 in the implementation plan review stage, with a total investment of 1.197 trillion yuan; 2845 social capital selection stage, with a total investment of 36657 billion yuan; There are 1555 projects in the construction and operation phase, with a total investment of 2.1173 trillion yuan; 9 projects in the handover phase, with a total investment of 2.5 billion yuan. The above data shows that there will be more than 60 billion yuan of PPP projects in the future that will gradually be built and operated.
The review and filing of PPP projects are as follows: 6297 projects for approval, accounting for 89%, with a total investment of 80629 billion yuan; 422 projects for approval, accounting for 6%, with a total investment of 956 billion yuan; 361 projects for filing, accounting for 5%, with a total investment of 425.4 billion yuan.
In the investment plans of provinces, autonomous regions and municipalities directly under the central government, transportation, energy and other large infrastructure projects still occupy the main positions. It is expected that the number of PPP-invested infrastructure projects and the amount of projects will increase in 2020. The growth rate of infrastructure in 2020 is expected to exceed 10 %.
