Official Release of the Developmental PPP Research Results
BEIJING, Dec. 2, 2019 /PRNewswire/ -- On November 29, the Second Developmental PPP Forum, co-sponsored by the Society of Public Finance of China and the Chinese Academy of Fiscal Sciences, was held in Beijing. During the forum, more than 200 experts and scholars, as well as social capital representatives from the PPP field in China discussed and promoted PPP-related theoretical studies and market practices. On behalf of the research group, Peng Cheng, director of the PPP Research Institute of the Chinese Academy of Fiscal Sciences, announced the official release of Introduction to Developmental PPP. This is the first result of the theoretical research into the innovative developmental PPP model in China.
The research group’s findings show that the developmental PPP model, as a standard PPP model, is widely applicable. Bearing significant Chinese characteristics and advantages, the developmental PPP model shows distinct differences from the traditional PPP model. Targeting regional sustainable development, the developmental PPP model deeply integrates workforce development, industry development, and space development to meet the needs of China’s new-type urbanization development, supply-side structural reform, and modernization of governance.
Introduction to Developmental PPP defines the developmental PPP model for the first time. It says the developmental PPP model, targeting regional sustainable development, establishes long-term cooperation between the government and social capital to provide integrated development services, placing industrial development at its core and spanning infrastructure construction and city operation. Social capital assumes major management responsibilities and takes substantial risks. In principle, the return on investment comes from the increase of fiscal revenue through government-social capital cooperation and is linked to performance to achieve incentive compatibility.
The book comprises theoretical summaries and research examining eight areas and establishes a theoretical system for developmental PPP. It comprehensively analyzes China’s background, international status, profit model, risk governance, performance assessment, and asset utilization of developmental PPP.
According to Meng Chun, a researcher at the Development Research Center of the State Council and director of the University of Chinese Academy of Sciences’ China PPP Research Center, the book offers recommendations for budget management policies in consideration of characteristics of the developmental PPP model, and will help promote high-quality development of PPP-related businesses.
Zhou Chengyue, former inspector of the Department of the National Treasury of the Ministry of Finance and former Chairman of the China Public-Private Partnership Fund; Wang Daiyu, deputy director of the Department of Finance of Guangxi Zhuang Autonomous Region; Xia Yingzhe, director of Promotion and Development Department, PPP Center of the Ministry of Finance; and other government and corporate leaders present at the forum unanimously confirmed developmental PPP’s role as a powerful innovation and effective exploration tool. Zhang Shufeng, deputy director of the PPP Research Institute of Chinese Academy of Fiscal Sciences and executive president of China Fortune Land Development Co., Ltd. (CFLD), said that release of the developmental PPP research results marks the progress of developmental PPP from being a successful practice to having a theoretical status—a milestone in the promotion and application of the developmental PPP model.
It is reported that in the next stage of work, the research team will carry out continuous research into the standardized operation of the developmental PPP model and promote the implementation of developmental PPP projects and healthy development of PPP-related businesses in China.
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SOURCE China Fortune Land Development Co., Ltd. (CFLD)