规制存量PPP

Core Viewpoint - The recent issuance of the "Guiding Opinions" by the State Council aims to provide a new regulatory framework for the existing PPP projects, which are valued at over 10 trillion yuan, addressing various issues and setting clear expectations for future implementations [1][9][12] Group 1: Regulatory Changes - The "Guiding Opinions" categorize and prioritize the implementation of existing projects, with different measures for near-completion and slow-progress projects, and stipulates that projects not started by the end of 2024 will not be implemented under the PPP model [1][9] - The new mechanism introduced in 2023 aims to clarify the rules for old and new projects, marking a new phase for the PPP industry [6][12] Group 2: Historical Context - The PPP model was heavily promoted starting in 2014 as a solution for local government financing issues and to enhance public service efficiency, leading to a peak where the total investment in the PPP management library exceeded 16 trillion yuan [2][5] - The industry faced a turning point in 2017 when the government began to clean up the PPP market, leading to a significant reduction in the number of projects and a halt in new project approvals [6][13] Group 3: Current Challenges - Existing PPP projects face numerous challenges, including delayed payments from local governments, difficulties in project completion, and a lack of clear policies leading to compliance issues [7][8][10] - The "Guiding Opinions" are expected to provide strong support for funding and policy resources for existing projects, which may help restore confidence in the market [9][11] Group 4: Future Outlook - The future of public service and infrastructure funding remains uncertain as the PPP model recedes, with local governments exploring alternative financing methods such as special bonds and direct financing from financial institutions [13][14] - Experts suggest that while the PPP model has its merits, the focus should be on ensuring that existing projects can complete their lifecycle to validate the model's effectiveness for future applications [14]