Posted 11/14/2023, 8:06:00 AM
China Cracks Down on Risky Public-Private Partnerships to Curb Municipal Debt
- China orders local governments to halt "problematic" public-private partnership (PPP) projects identified in inspections.
- Replaces 10% budget allowance for PPP projects with vetting mechanism by Beijing.
- Aims to curb municipal debt risks as local government debt reached 92 trillion yuan in 2022.
- PPP projects not having completed bidding process by Feb 2022 to be suspended.
- Oversight for PPP projects to shift from finance ministry to economic planning agency.