BEIJING, Oct 20 (Reuters) - China’s finance ministry on Thursday issued rules for the management of government funds used in private-public partnership (PPP) projects, as the country looks to spur private investment.
The rules for projects in the public service sector aim to strengthen management of funds and protect investors’ rights, and prohibit participants from raising government debt in the guise of PPP projects.
China is keen to lure private capital to government-led projects to alleviate a debt burden for local authorities, and has promised policies to support PPPs, though concern about fair access and low returns have deterred non-state players.
The new rules cover government purchases, budget management, and rules on oversight of projects, and require all project plans to be evaluated and approved by the finance ministry. (Reporting by Elias Glenn; Editing by Clarence Fernandez)