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China opens projects worth US$29 bln to private investors

China announced a total of 30 new projects worth 180 billion yuan (US$29.2 billion) to draw private capital in the form of public-private partnerships (PPPs), as it aims to cut local government debt.

The projects cover several areas, including water and heating supply, sewer systems, medical care, sport facilities and urban infrastructure, the Ministry of Finance said in a statement.

“Both domestic and foreign investors are welcome to take part in the construction and operation of these projects,” the Ministry said according to China’s official news agency Xinhua.

Xinhua added that in most cases, PPP projects in China are funded and operated by private investors and supervised by local governments.

China’s State Council released a statement last month highlighting the importance of PPPs to tackle local government debt in the country.

“PPPs will help broaden financing channels for urbanisation and cut local government spending,” Xinhua quoted Sun Jie, a finance researcher at the Ministry of Finance, as saying.