The State Council’s general office issued a guideline on May 22 to promote public-private partnership (PPP) in public services and clarifies requirements.
There should be innovation and reform in the mechanism to build a new system promoting the development of PPP mode, said the guideline.
A regulated, transparent and orderly PPP market with strong supervision should be established to reduce the debt risks of local governments, according to the guideline.
Implementation and administration frameworks should be clarified, fiscal management system improved, public service quality and price supervision enhanced, and the price adjustment mechanism improved, said the guideline.
The guideline also encourages wide application of PPP mode. New projects should go through financial viability criteria. Cooperative partners can be chosen on the government shopping information platform.
The guideline urged to simplify approval procedures, establish joint assessment mechanism, and improve financial and taxation policies.
The guideline also stressed that related ministries of the State Council should strengthen guidance and supervision. The Ministry of Finance should enhance policy communication and coordination, and share information with other related ministries.
Local governments should fulfill their duties and establish a platform to release information.