China’s central Chongqing province plans to launch 800 billion yuan ($129 billion) worth of projects over the next six years which it will invite private investors to build, own and operate, the China Securities Journal reported on Tuesday.
The public-private partnerships (PPP) will be part of some 1.8 trillion yuan worth of infrastructure projects that the province will undertake in the years up to 2020, provincial mayor, Huang Qifan, told the newspaper.
PPP projects launched so far this year include an expressway, hospitals, and carparks, he said.
Beijing is increasingly encouraging the country’s local governments to turn to PPP projects to fill a widening funding gap as it clamps down on traditional off-balance sheet borrowing by local authorities.
In May, China’s state planning agency released a list of more than 1,000 proposed PPP projects totalling 1.97 trillion yuan planned for 29 areas including Beijing and southeastern Jiangxi province.
Analysts, however, caution that the take-up rate by private investors for PPP projects has so far been tepid, due to concerns over project profitability.
($1 = 6.2084 Chinese yuan renminbi)