China will promote public-private partnerships in the countries participating in Belt and Road Initiative, an infrastructure and trade network linking Asia with Europe and Africa along ancient trade routes, an official said today.
He Lifeng, deputy head of National Development and Reform Commission, said his organisation and other departments, have come up with a mechanism to boost the PPP model in countries along the routes. He did not provide any more details.
He said the PPP model would help facilitate the progress of projects as it broadens financing channels for companies.
Innovative financing models were necessary since some projects under the Belt and Road Initiative require large investments with long payback periods, He said.
PPPs have existed in China since the 1980s, but the adoption of the financing mode had been slow until China released two PPP guidelines in 2014.
In China, PPP project operators are encouraged to directly solicit money from capital market, and social security funds and insurance premiums are allowed to invest in the projects, state-run Xinhua news agency reported.
The Belt and Road Initiative, also known as the Silk Road Economic Belt and the 21st Century Maritime Silk Road, was put forward by China in 2013.
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