Ministry of Finance, Tentative Measures for the Administration of the Public Finances of Public-private Partnership Projects

The competent industry department shall, in light of budget management requirements, incorporate the government's responsibility for multi-year fiscal expenditures as specified in the PPP project contract into the mid-term fiscal plan and, after review and summary by the finance department, submit the same to the people's government at the same level for review, so as to ensure the government's performance capacity throughout the entire life of the project (Article 18).

Implementation of a project may not take the form of build-transfer.

Where the public and private parties establish a project company in the form of an equity joint venture, the shareholder agreement may not provide for an arrangement whereby the public shareholder or another entity designated by the government will buy back the equity of the private shareholder (Article 35).

Related legislation: Operational Guidelines for Public-private Partnerships (Trial Implementation) and Guiding Opinions on Promoting the Public-private Partnership Model in Public Service Sectors

Issued: September 24 2016

Effective: as of date of issuance

Applicability: These Measures shall apply to the various types of PPP projects carried out in public service sectors such as energy, transport, public utilities and infrastructure, agriculture, forestry, water resources, environmental protection, low-income home ownership projects, education, science and technology, culture, sports, medicine, health, senior care and tourism in China (Article 2).

Main contents: Where all or part of the technical plan proposed by a private investor that participated in a procurement assessment is ultimately adopted but, following procurement, is not awarded the contract, the finance department, together with the competent industry department, shall pay reasonable compensation for its preliminary input costs (Article 14).

The competent industry department shall, in light of budget management requirements, incorporate the government's responsibility for multi-year fiscal expenditures as specified in the PPP project contract into the mid-term fiscal plan and, after review and summary by the finance department, submit the same to the people's government at the same level for review, so as to ensure the government's performance capacity throughout the entire life of the project (Article 18).

Implementation of a project may not take the form of build-transfer.

Where the public and private parties establish a project company in the form of an equity joint venture, the shareholder agreement may not provide for an arrangement whereby the public shareholder or another entity designated by the government will buy back the equity of the private shareholder (Article 35).

Related legislation: Operational Guidelines for Public-private Partnerships (Trial Implementation) and Guiding Opinions on Promoting the Public-private Partnership Model in Public Service Sectors