Core Viewpoint - The article discusses the challenges faced by different stakeholders in the PPP (Public-Private Partnership) sector, highlighting the need for new regulatory frameworks to address existing issues and improve project execution [2][11]. Group 1: Challenges Faced by Stakeholders - Social capital faces issues such as local governments delaying payments for completed work [11]. - Local governments encounter multiple challenges, including delays in project completion settlements, difficulties in loan interest rate adjustments, and unclear allocation of special funds [11]. - The lack of a clear policy framework has led to compliance issues, affecting the confidence of financial institutions and social capital, which in turn impacts project progress [11][12]. Group 2: Historical Context and Development of PPP - The PPP model was heavily promoted starting in 2014, with the aim of providing new financing channels for local governments and improving public service efficiency [7][8]. - At its peak, the total investment in the PPP management library exceeded 16 trillion yuan, covering various public service sectors [3][7]. - The transition from promotion to regulation began in 2017, with the government implementing measures to clean up the PPP market and address issues of "abuse" and "overextension" [8][9]. Group 3: Recent Developments and New Mechanisms - On August 20, 2023, the State Council issued new guidelines to regulate the construction and operation of existing PPP projects, aiming to restore confidence in the sector [2][13]. - The new guidelines provide strong support for existing PPP projects through various funding sources, including general bonds and special bonds [13]. - The guidelines encourage equal communication and cooperation among social capital, financial institutions, and government entities to optimize project implementation and reduce operational costs [15][16]. Group 4: Future Outlook - The article raises concerns about the future of public service and infrastructure funding as the PPP model gradually declines [18]. - As of August 2025, only 254 new mechanism projects have been registered, primarily focused on user-pay projects, indicating a significant reduction compared to the peak period [19]. - The industry is exploring alternative financing methods, but no large-scale replicable solutions have emerged to replace the original PPP model [19].