Favorable policies, environmental protection PPP projects open 100 billion yuan market space

In recent years, we have learned that the environmental protection government and the social capital cooperation (PPP) project have been enthusiastic about the increasing enthusiasm of environmental protection and social capital cooperation, which is expected to open hundreds of billions of yuan market space.

The data of the PPP center of the Ministry of Finance showed that by June 2017, there were 13554 national warehousing projects, with a total investment of 16 trillion and 400 billion yuan, covering 31 provinces (autonomous regions, municipalities directly under the central government) and Xinjiang production and Construction Corps, and 19 industries. From the end of 1 to the end of 6 month of 2016 to the end of 6 month, the national PPP comprehensive information platform project library increased 386 projects, the investment amount was 484 billion 200 million yuan, and the PPP project needs continued to increase.

Multiparty data show that environmental protection projects are becoming the focus of PPP. At present, during the review process of the fourth PPP demonstration project of the Ministry of finance, in the third batch of demonstration projects released in September last year, there are institutional statistics in the industry, and the demonstration projects related to environmental protection are distributed in municipal engineering, ecological construction, environmental protection and energy industry, with a number of 216, more than 40% of the total number of demonstration projects in third batches. The scale of investment has exceeded 250 billion yuan, accounting for more than 20% of the total. This investment has increased significantly compared to the second batch of demonstration projects of 150 billion yuan.

The number of environmental PPP projects has increased significantly, thanks largely to the vigorous promotion of local governments. For example, the three year action plan for the promotion of government and social capital cooperation (PPP) (2017 - 2019) of Guizhou province (2017 - 2019) was issued and implemented. In the field of "6+1" traditional infrastructure and social public service, 1000 early work has been screened out, and demonstrative and leading PPP projects are focused on. Previously, Guizhou Province in 2016 also approved the establishment of the first industrial investment fund, the Guizhou PPP industrial investment fund, with a total scale of 2 billion yuan, investing in industries such as environmental protection, water affairs, water conservancy and intelligent cities in Guizhou province. In addition to setting up the PPP fund, some places are also actively promoting the special fund as a reward fund for PPP. Including Guizhou, Shandong, Sichuan, Xinjiang, Beijing and other provinces and cities, have issued the corresponding PPP award and subsidy policy.

At the policy level, the recently issued series of policies are favorable for the development of environmental protection PPP projects. The general office of the State Council issued the "guidance on further stimulating the vitality of private effective investment to promote the sustained and healthy development of the economy", and explicitly proposed to encourage private capital to participate in the PPP project and promote the construction of infrastructure and public utilities. We will increase the openness of infrastructure and public utilities, prohibit the exclusion, restriction or discrimination of private capital, create equal opportunities for private enterprises and support the participation of social capital in the PPP project.

Not long ago, the Ministry of Finance and other 4 departments jointly issued the "notice on the comprehensive implementation of the PPP model of sewage and garbage disposal projects involving government participation". The general goal is to make clear that the overall goal is to implement the PPP model in the new sewage and garbage disposal projects involved in the government. The orderly advance stock project is transformed into PPP model. As soon as possible, the PPP market with social capital, unified, standardized and efficient is formed in this field, and the supply structure of public products and services in the related environment is greatly optimized.

Liu Jingxia, senior partner of the Kyoto law firm, said that the environmental PPP project is expected to grow well, and the scope of the project is expected to continue to expand. The industrial capital of transboundary industry continues to enter the field of environmental protection and has new development trends and new characteristics of the industrial base. The enthusiasm of local governments in promoting environmental PPP projects remains high.

Jin Yongxiang, general manager of Dayue, said that in recent years, environmental issues have become an important issue in new urbanization. Environmental pollution such as urban black and foul water and river pollution has also come to a point of governance. Therefore, the local government has launched a large number of environmental PPP projects. There will be great prospects for the development of environmental protection PPP in the future.

He also said that the previous project is a single environmental management project, such as a sewage treatment plant, waste incineration plant, and so on, these projects generally invest hundreds of millions of yuan, now the environmental protection PPP projects are basically comprehensive environmental renovation projects, the investment scale is relatively large, compared to the management of a river, the investment is a few. One billion yuan or even more than ten billion yuan, the concept of environmental governance has changed. At the same time, environmental remediation projects are relatively comprehensive, such as watershed management in the region. Many facilities must be planned, invested, built and managed at the same time.

Liu Jingxia, senior partner of the Kyoto law firm, said that the environmental PPP project is expected to grow well, and the scope of the project is expected to continue to expand. The industrial capital of transboundary industry continues to enter the field of environmental protection and has new development trends and new characteristics of the industrial base. The enthusiasm of local governments in promoting environmental PPP projects remains high.

Jin Yongxiang, general manager of Dayue, said that in recent years, environmental issues have become an important issue in new urbanization. Environmental pollution such as urban black and foul water and river pollution has also come to a point of governance. Therefore, the local government has launched a large number of environmental PPP projects. There will be great prospects for the development of environmental protection PPP in the future.

He also said that the previous project is a single environmental management project, such as a sewage treatment plant, waste incineration plant, and so on, these projects generally invest hundreds of millions of yuan, now the environmental protection PPP projects are basically comprehensive environmental renovation projects, the investment scale is relatively large, such as the management of a river, investment It's billions of dollars or even hundreds of billions of dollars.