China sets up $28.3 billion fund to back PPP projects

BEIJING: China today set up a $28.3 billion fund to support the public-private-partnership (PPP) projects as part of new reforms to halt the slide of the slowing down of world's second biggest economy.

The Finance Ministry (MOF) announced that a fund worth 180 billion yuan ($28.3 billion) would support PPP projects.

The MOF also unveiled 206 PPP projects worth 659 billion yuan (about $109 billion) including a new expressway in Beijing as China reverted back to investment driven growth to speed up the economy which is hovering around 7 per cent GDP growth.

The fund was created together with 10 Chinese financial institutions including the China Construction Bank, the Agricultural Bank of China, the Bank of China, the Bank of Communications, CITIC Group, and China Life Insurance (Group).

The fund will be mainly used to support public service projects, the MOF said.

The MOF said the fund was outlined in a guideline on PPP programs released in May by China's cabinet, state run Xinhua news agency reported.