Shanxi has published 75 public projects to attract social capital through PPP model, according to the province’s development and reform commission on July 14.
The total investment of the 75 projects, which relate to transportation and public services, is estimated to be 59.14 billion yuan ($9.53 billion). The province also disclosed the projects' information around location, industry, scale and cooperation model for investment promotion.
PPP or Public-Private-Partnership is a new model of financing, and a way to curb the power of bureaucrats and limit government spending. The government, as a result, will be able to focus more on supervision, guidance and social well-being.
PPP can also economize the government’s operating costs and maintain national assets, while enterprises will be more confident in their investments for partnership with government.
There was already a successful case of PPP model in Shanxi in 2014, when Jinzhong city cooperated with Taiwan Pacific Group in the Huitong Building project with investment of 1.6 billion yuan.
“Jinzhong has land, and Pacific has capital, their cooperation is win-win,” an expert commented.
