On the 6th, the Ministry of Finance, together with relevant ministries, released the fourth batch of government and social capital cooperation (PPP) demonstration projects. The fourth batch includes a total of 356 projects, involving an investment of 758.8 billion yuan. Overall, compared with the application and selection of the third batch of demonstration projects, the fourth batch saw an increase of 52 applications, a decrease of 180 billion yuan in applied investment, a decrease of 120 selected projects, and a decrease of 412 billion yuan in selected investment, highlighting a stronger emphasis on the standardization and high quality of project implementation.
In terms of industries, five sectors have more than 20 selected projects. Among them, the municipal engineering sector has the largest number of projects, with 163, accounting for 41%; followed by the transportation sector with 41, accounting for 10%; and third is the ecological construction and environmental protection sector with 37, accounting for 9%.
In terms of investment, six sectors have an investment exceeding 20 billion yuan. Among them, the transportation sector has the highest project investment, at 237.599 billion yuan, accounting for 31%; followed by the municipal engineering sector at 199.927 billion yuan, accounting for 26%; and third is the urban comprehensive development sector at 111.209 billion yuan, accounting for 15%.
The total number of projects in the basic public service fields of tourism, culture, education, sports, and elderly care is 81, with an investment of 75.130 billion yuan, accounting for 20% of the total number of selected demonstration projects and 10% of the investment, respectively, an increase of 6 percentage points and 4 percentage points compared with their proportions in the third batch of demonstration projects, reflecting policy support for key areas. Among them, although the number of elderly care projects decreased compared with the third batch, the selected projects accounted for 42% of the number and 49% of the investment.
It is noteworthy that the participation rate of private enterprises has significantly increased in the fourth batch of demonstration projects. Private enterprises participated in 143 selected demonstration projects with an investment of 242.9 billion yuan, accounting for 57.9% and 51% respectively, higher than the 46.9% participation rate of private enterprises in the first three batches of implemented projects. By industry, the municipal engineering sector has the largest number of projects with private capital participation, with 57 projects; the ecological construction and environmental protection sector ranks second with 15 projects; and the third is the urban comprehensive development sector with 10 projects.
Industry insiders believe that the release of this batch of demonstration projects will help dispel market concerns and warm up PPP projects. Jin Yongxiang, an expert in the selection of the fourth batch of PPP demonstration projects and chairman of Dayue Consulting, said that the Ministry of Finance's announcement of the fourth batch of PPP demonstration projects sends a signal that PPP remains one of the models for providing public goods and public services. The fourth batch has 396 projects with a total investment of 758.8 billion yuan, about 25% less than the third batch. Since the Ministry of Finance issued Document No. 92 in November 2017, PPP has gradually cooled down. Although the government is still launching some new PPP projects while rectifying existing ones, participants are taking a wait-and-see attitude. The release of the fourth batch of demonstration projects will dispel concerns about the direction of PPP policy.