Dream and confusion behind the hottest trillion PP

2022-08-17
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The dream and confusion behind the trillion PPP feast are weak ecology: legislation only smells the sound of stairs

the dream and confusion behind the trillion PPP feast are weak ecology: legislation only smells the sound of stairs

China Construction machinery information

"this year is the busiest year for PPP professional consulting institutions". Tong Zaijun, deputy director of PPP research center of Guoxin tendering Group Co., Ltd., told Shanghai Securities News

since 2015, PPP mode has been carried out in all parts of the country, and insiders call it the first year of PPP. In the past year, Tong zajun's life can also be described as "people on the road". "I have flown 77 times this year, either to give lectures or to contact investors. Either on the plane or on the train." When saying this, Tong Zaijun, who is devoted to the research and development and manufacturing of testing equipment in the adhesive products industry, just left Chengdu. His next stop is Hangzhou

ppp (public private partnership) mode, that is, the government and social capital cooperate to jointly provide infrastructure and public services. On July 31, 2013, Premier Li Keqiang proposed to attract private capital to participate in the construction and operation of operational projects by means of franchising, investment subsidies and government purchase of services. As a major reform measure in the new round of urbanization, this is considered to be the signal of the opening of PPP mode

according to statistics, after two years of development and innovation, more than 1800 PPP projects have been launched across the country, with a total investment of 3.4 trillion yuan

ppp has become one of the hottest words in the field of infrastructure and public services. Local governments at all levels are busy recommending PPP projects, and state-owned enterprises, private enterprises, banks, lawyers have interpreted policies and conducted PPP training. Even the UK, which first launched the PPP model, has written reports specifically for China

government enterprise cooperation: it's like a marriage

an industry expert analyzed that there is such an understanding at both the theoretical and practical levels of PPP that the biggest risk of PPP comes from the government's lack of contract spirit, "new officials ignore old accounts" risk

"we have done more than 300 PPP projects at present, and there are many projects waiting for us to do, and the work schedule has been scheduled to the end of next year." Said Tong Zaiyuan

with the support and promotion of the government, PPP has become popular. However, many places have reflected that there is a phenomenon of "hot shaving and hot picking" in the process of project promotion, and the details of unqualified products are published in a timely manner. At the press conference held by the state information office in September, Lian Weiliang, deputy director of the national development and Reform Commission, also admitted that PPP has some problems that are difficult to implement

in fact, there are many reports about the difficulty of PPP implementation. As early as may this year, long Yongtu, former Vice Minister of the Ministry of foreign trade and economic cooperation, said at a forum that 80% of the 80 PPP projects proposed by the state last year, which exceeded 1.6 trillion, still need to be implemented

zhuzhenxin, macro researcher of Minsheng securities, conducted a PPP landing survey for this purpose. According to their statistics, less than 30% of the contracted projects may be invested this year, and the proportion of the contracted projects is lower, which is expected to be only about half

"the landing of PPP projects failed to meet expectations. This phenomenon of 'applauding but not winning' shows that many social capital is still in a wait-and-see state." According to the analysis of an industry expert, there is an understanding in both theory and practice of PPP that the biggest risk of PPP comes from the lack of contract spirit of the government and the risk of "new officials ignoring old accounts"

Zhao Fujun, deputy director of the Research Office of the Foreign Economic Research Department of the development research center of the State Council, has been engaged in relevant research in the PPP field for many years. In his view, the government, as both a "referee" and an "athlete" in PPP practice, is both a policy maker and an important participant in the project, and plays a vital role in the success or failure of the PPP project

Zhao Fujun found that some local governments have weak contract spirit. For example, in order to attract social capital to participate in local PPP projects, some local governments resort to fraud in bidding, which has dishonest problems such as falsely increasing consumption demand and hiding project risks. In addition, the change of local government administration also affects local government credit. As the life cycle of PPP often spans several administrative cycles, the number of project failures caused by the change of local leaders is twice that when there is no change of leadership

"the highest operating cost in China is credit, that is, the spirit of contract. Some local governments just lack this spirit of contract." He Yuanping, one of the founders, executive vice president and Secretary of the board of directors of bishuiyuan, expressed the same view to Shanghai Securities News

as one of the leading domestic water enterprises, bishuiyuan has also made great progress in the field of environmental protection PPP. Since 2007, bishuishui has been under mixed ownership or PPP mode. Among them, Yunnan Water Investment Co., Ltd., a joint venture between bishuiyuan and Yunnan Urban Investment using PPP mode, took the lead in listing in Hong Kong on May 27, 2015, becoming the first PPP mode listed company in China's water sector. Up to now, bishuiyuan has more than 30 PPP joint ventures

He Yuanping, who has quite rich experience in PPP operation, said that the current PPP projects generally have a low rate of return, which requires stable risks. Especially in the implementation of the project, if the government is not constrained, the risk will increase. From the perspective of business operation, high risk must be high return. If there is no high return, naturally no one is willing to do it

of course, in PPP projects, it seems that the government is dominant and social capital is weak, but in the implementation process of the project, social capital also has a certain degree of autonomy, and naturally a few enterprises will violate the spirit of the contract. The reason is either that the enterprise has violated the quality commitment of the service or product in the contract for the purpose of maximizing profits, or because the project income is less than expected, and the enterprise is unwilling to perform the contract and other factors

the PPP project director of a listed company admitted that several PPP projects they took over were left behind by the temporary default of the previous enterprise, and the local government was also quite helpless about this

"for PPP cooperation between governments and enterprises in a market environment, both sides should uphold the concepts of equal participation, risk sharing, income sharing, and win-win cooperation." He Yuanping uses the "marriage theory" to vividly compare the relationship between partners in the PPP project. He believes that bidding is like people looking for objects, not only by advertising, but also by falling in love. A core factor of PPP is to have the spirit of contract, which is the basic condition. We also need to be harmonious. Is everyone's starting point consistent. Just like falling in love, how can we succeed without love? Flash marriage can only be divorced

he said that some people analyzed marriage. At the beginning, two people ran together. One was on the 20th floor and the other was on the 5th floor, so the gap was big. PPP is the same. We should contribute to this marriage together

attracting private capital: a complex application problem

state owned enterprises are superior to private enterprises in many aspects such as market entry and capital financing. Local governments pay more attention to carrying out relevant cooperation with state-owned enterprises when promoting PPP projects, and the motivation for cooperation with private enterprises is insufficient

the worry of social capital leads to the cold of PPP project promotion, and in this process, private capital is even less common. Tong Zaijun, who has taken over more than 100 PPP projects this year, admitted that 90% of the projects he participated in came from state-owned enterprises, and there are really not many private enterprises

it is reported that even among the leading private enterprises - the top 500 private enterprises, only 59 have practiced the PPP model

"the introduction of private capital investment in infrastructure projects can not only revitalize the social stock funds and avoid the suspicion of excessive monetary issuance, but also enable the government to improve the construction of public facilities and stabilize economic growth without increasing the financial burden." However, industry experts said that in recent years, the government has actively encouraged private capital to participate in the construction of major national projects, and there are many supporting documents from various ministries and commissions, but private capital's participation in PPP projects has encountered the embarrassing situation of "ideal is very plump, reality is very skinny"

Zhejiang Xinchang Xinxin home is a pension PPP project operated by Tong Zaijun. This project entered the PPP project library of Zhejiang Provincial Department of Finance in 2015. The investor is a private enterprise. It has been going on for more than a year and has not been implemented yet

in the investigation, Shanghai Securities News has heard Tong Zaijun talk about this matter many times. In his view, China has entered an aging society, and there is a strong demand for social pension. Coupled with a lot of policy support from the state, this market is very large. However, at present, the pension PPP is still a "virtual hot" project, which is relatively unpopular in the market and mainly participated by some private enterprises. Affected by various factors, the landing effect is not ideal

songxudong, investment manager of PowerChina Chengdu survey, design and Research Institute Co., Ltd., has been paying attention to the pension PPP market. He told that if pension PPP wants to be truly implemented, it must also be packaged and designed to find a suitable profit point

"there is no shortage of money and good projects in this market." He Yuanping believes that the reason why bishuiyuan chose to do PPP projects in the field of environmental protection is that environmental protection is a semi public welfare and semi market-oriented project, such as sewage. Many residents and enterprises paid some money, and the rest were subsidized by the government. Public welfare projects and fully market-oriented projects cannot be done

it is observed that in promoting the PPP model in the field of public services, how to give consideration to investment interests and public interests, so that social capital can make money and people can benefit materially, "fish" and "bear's paw" test the wisdom and ability of the government. Although private enterprises' willingness to participate in PPP has increased in recent years, whether they can get good projects and how to cooperate with local governments in a sustained and healthy manner are complex application problems

in addition to the problem of project profitability, the development and influence of state-owned enterprises in the PPP market are also beyond the reach of private capital

Zhao Fujun found that due to various reasons such as mechanism and system, state-owned enterprises are better than private enterprises in many aspects such as market entry and capital financing. Local governments pay more attention to the relevant cooperation with state-owned enterprises when promoting PPP projects, and the motivation to cooperate with private enterprises is insufficient

in the current PPP market, if private capital wants to counter attack, Cui Lijun, a financial columnist, believes that under the condition that the macro environment has not changed much for the time being, there is another important competitive dimension in the PPP market, that is, innovation

ppp market innovation can be divided into financial innovation, management innovation and technological innovation. In financial innovation and management innovation, although it is difficult for small and medium-sized enterprises to participate, a large number of high-quality private listed companies or unlisted enterprises can participate; In terms of technological innovation, small and medium-sized and even entrepreneurial enterprises can make great achievements in the PPP market, but the state needs to create a certain institutional space and provide appropriate financial support

weak ecology: legislation only hears the sound of stairs

last May, the national development and Reform Commission issued the infrastructure and Public Utilities Franchise law (Draft for comments) for the first time and solicited public opinions. But unexpectedly, the draft of the plan has been changed for several times, and its implementation has not yet been seen at present.

on November 9, Premier Li Keqiang reiterated at the Symposium of economic situation experts and business leaders that we should expand effective investment, accelerate the construction of infrastructure, especially public facilities in the central and western regions, and promote balanced development by adopting PPP and other means

the premier's speech once again illustrates the country's determination to promote PPP. have

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