Mode of PPP Fuels Construction of Infrastructure in China
OREANDA-NEWS. A batch of big projects in Anhui such as Chuzhou-Nanjing Intercity Railway, Wuhu Metro and so on will start construction soon. A new mode-PPP (public-private partnership) will be introduced to fuel the construction of the infrastructure.
It is introduced that the investment in the infrastructure of the cities in Anhui has reached 100 billion yuan every year and the investment funded by governments accounts for about 65%, mainly depending on land transfer and land mortgage.
In 2013, the urbanization rate of Anhui hit 47.9% and the urbanization of Anhui is in sharp rise. It is expected that the investment in the infrastructure across Anhui will reach 150 billion yuan by 2020.
Therefore, Anhui Provincial Government decided to publicize the mode of PPP in order to attract more private capital.
Under the mode, individuals or nonpublic organizations are encouraged to cooperate with governments. The move can not only provide stable capital for the urbanization but also reduce the burden of governments. According to the plan, 10 cities and 8 counties are included into the 1st batch of pilot cities and counties.
42 projects with total investment hitting 70.953 billion yuan including urban sewage treatment, urban water supply and transportation will introduce the mode of PPP, according to the press conference yesterday.
It is learned that Line 1, 2 of Wuhu Track Transportation and 55.23-kilometer-long Chuzhou-Nanjing Intercity Railway will also introduce this kind of mode.
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