·Transportation accounted for 70% of the PPP project promoted by the 70% Development and Reform Commission

According to experts, the number of transportation projects accounted for 30% of the proposed projects, and the investment scale accounted for 70%. Due to the relatively backward infrastructure in the western region, the geographical distribution is relatively high, and the number of projects and investment scale are close to 60%. Highly consistent with national strategic intent.
Recently, the National Development and Reform Commission publicly introduced 1,233 traditional infrastructure PPP projects to the public, with a total investment of about 2.14 trillion yuan, covering seven fields including energy, transportation, water conservancy, environmental protection, agriculture, forestry and major municipal projects. The batch of projects was selected from the locally reported 2053 traditional infrastructure projects. The conditions are relatively mature, in line with industrial policies and development plans, and have clear financing needs.
Xu Guangrui, director of industrial research at Huaxia Happiness Industry Research Institute, said in an interview that this is the third batch of PPP projects that the National Development and Reform Commission publicly promoted to the public. The core issues of the PPP project promotion are the payment mechanism (reward mechanism) and the market environment (contract spirit). The goal is to achieve public-private partnerships and create benefits. The government also intends to increase the promotion of projects with cash flow and stable return expectations. More precipitated social capital is involved to make up for the “financial shortfall” in government infrastructure construction.
In terms of industry distribution, 1233 projects cover seven areas including energy, transportation, water conservancy, environmental protection, agriculture, forestry and major municipal projects. Among them, 574 major municipal engineering projects accounted for 46.55%; 373 transportation projects accounted for 30.25%; 153 water conservancy projects, accounting for 12.41%; 43 forestry projects, accounting for 3.49%; 34 agricultural projects, accounting for 2.76%; There are 33 energy projects, accounting for 2.68%; and 23 environmental protection projects, accounting for 1.87%.
In terms of industry investment scale, transportation project investment was 1,479.3 billion yuan, accounting for 69.07%; major municipal engineering project investment was 413.302 billion yuan, accounting for 19.30%; water conservancy project investment was 143.81 billion yuan, accounting for 6.71%; environmental protection project investment was 30.755 billion yuan. Accounted for 1.44%; forestry project investment of 28.415 billion yuan, accounting for 1.33%; agricultural project investment of 26.493 billion yuan, accounting for 1.24%; energy project investment of 19.686 billion yuan, accounting for 0.92%.
From the data point of view, regardless of the industry distribution or industry investment scale, the investment scale of transportation projects is larger than other industries. Xu Guangrui said that due to the large volume and strong driving force, the transportation project has a high proportion in the current promotion projects, accounting for 30% of the total investment, accounting for 70% of the investment scale, and accounting for the relatively backward infrastructure in the western region. High, the number of projects and the scale of investment are close to 60%. From the distribution of transportation PPP projects, it is also highly consistent with the country's recent strategic intentions.
Xu Guangrui told reporters that considering the current low interest rate environment and the "irrational exuberance" of the real estate market, monetary policy is more difficult to make a big move, and the role of fiscal policy will be more prominent in the future. The government has raised the deficit rate to 3% this year. Therefore, it is an important force to absorb more social capital to participate in the construction of infrastructure and public service facilities to make up for the lack of government funds and become the key direction of the policy.
"PPP's vigorous promotion has three major impacts on the economy. First, the pace of infrastructure and public facilities construction has accelerated. The upstream and downstream industries such as raw materials and construction have benefited. The service industries such as entertainment, pension and logistics have also been promoted for a long time. Secondly, The financial environment is continuously optimized. The willingness of financial institutions to participate in PPP and support PPP is increasing. The continuous expansion of PPP guidance funds will release a stronger 'leverage effect'. Third, it will force the government and enterprises to abide by the spirit of the contract and gradually build a good relationship. Market environment." Xu Guangrui said.

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