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Private Capital Blossoms in the Public Sphere in Wenzhou
【Fonts: Large Medium Small 【Source: Wenzhou·China 【Date: 2019.10.14】

Active private capital is flourishing all over the public sphere in Wenzhou, which provides a solid financial guarantee for Wenzhou’s urban construction. By the end of September, Wenzhou had the most PPP projects in storage in Zhejiang Province, a total of 80 projects worth 112.873 billion yuan. Seventy-four projects, such as Brightening Night Tour at the Core Section of the Oujiang River, have landed one after another with a total investment of 108.847 billion yuan.

Moreover, PPP can be seen everywhere in the fields closely related to public life, for example, “The All-out Efforts for Transportation” and “Well-planned Construction and Beautification”. Phase I Project of the High-speed Commuter Train Line S1 which is in full operation recently also adopted the PPP cooperation pattern with a total investment of 9 billion yuan. In line with the “TOT” mode, the government has transferred the 30-year operation right to the project company who will be responsible for the operation, maintenance, management, renovation and additional investment of the project facilities.

The construction of Beicha Bridge of Qidu Bridge Project, which was approved at the same time with Line S1 by the National Project Management Base of PPP Integrated Information Platform, received a total investment of 2.84 billion yuan in PPP cooperation. The government adopts the BOT mode to cooperate with the project company for 14 years, during which the project company will be responsible for the investment, construction, operation and maintenance of the project.

Behind Wenzhou’s active private capital is the innovative working method of Wenzhou’s financial departments. They volunteer to do matchmaking for the government departments and private capital in order to “Serve Well the Overall Situation, the Government Departments, the Enterprises, the Public and the Grassroots” (“Serve Five Well”). Now, Wenzhou Finance Bureau no longer needs to wait for social investment. Instead, it can take the initiative to select partners. Since 2015, it has introduced about 200 PPP projects in 6 groups to the market, attracting more than 60 private enterprises to participate in Wenzhou’s public service and infrastructure construction.

Moreover, in order to get more projects into the National PPP Project Base, Wenzhou Finance Bureau voluntarily refers its PPP model to higher authorities so that the PPP model can be widely promoted and applied in key public service projects including Line S1, Qidu Beicha Bridge and Ouhai Dragon Boat Base. As a result, Wenzhou’s financial pressure is effectively alleviated and private capital is fully mobilized to benefit people.

Besides, in order to offer PPP projects more mechanism guarantee, Wenzhou Municipal Government and Wenzhou Finance Bureau have established a coordination mechanism involving a PPP Work Leading Group and regular meetings, and issued a series of policies to promote the institutionalization and standardization of PPP work. At present, the project implementation rate reaches as high as 93%. At the same time, Wenzhou has ushered in funding cooperation at the “National- Provincial- Municipal” levels. It has signed with China’s PPP Fund a strategic cooperation agreement of a 10-billion-yuan “package support plan” and established joinly with Provincial PPT Fund a Wenzhou’s infrastructure investment fund of 1 billion yuan. At the municipal level, it has set up a 5-billion-yuan Guarantee Fund for “Large-scale Construction and Beautification”, thus giving full play to the leverage role of the fund.

In order to further support the development and construction of various regions, Wenzhou Finance Bureau has strengthened training services and door-to-door publicity since this year. Taking “Serve Five Well” as the carrier, it went to counties (county-level cities, districts) and related departments to solve 363 practical operational problems. On top of that, PPP financing has also been included in the competitive deposit assessment of fiscal deposits, hence guiding financial institutions to increase the total volume of credit in the field of PPP and improve financing environment of private enterprises.

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