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To encourage private investors the National
Development and Reform Commission (NDRC) has opened up a number
of major infrastructure projects that had previously been
off-limits, officials told a news conference.
Private investors can build projects in energy, transportation,
water and environmental protection and urban utilities through
franchises, according to rules issued by the planning agency.
Contracts would be based on build-operate-transfer (BOT) models.
The planning agency pledged to "protect the legal interests of
social capital and guarantee stability and continuity of
franchising operations".
The government will encourage banks to provide syndicated loans
for such franchise projects, and let policy banks offer
"differentiated" credit support, including loans of up to 30
years, according to the rules due to take effect from June 1.
The projects will be allowed to raise funds via private equity,
strategic investment and bonds, according to the new rules.
Private investment is being encouraged in infrastructure as
local governments are saddled with heavy debts largely run up
during a massive state-led stimulus implemented after the global
financial crisis struck.
The government is looking for ways to lift the economy, as
growth slowed a six-year low of 7 percent in the first quarter
and recent factory surveys indicated continued weakness into the
second quarter.
(Reporting by Kevin Yao; Editing by Simon cameron-Moore)
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