The first session of Council on Fujian Province’s Public-Private Partnership Earmarked Fund (hereinafter called as “PPP Earmarked Fund”), co-initiated by Fujian Provincial Department of Finance and IB, was held on October 10. It approved some proposals including fundraising plan and fund investment strategy, and announced the PPP Earmarked Fund with a total size of RMB 20 billion was put into operation.
With a period of 10 years, it has finished industrial and commercial registration and focuses on PPP projects that are included in the Fujian Provincial PPP Projects Bank with financial capacity already demonstrated. Fujian Provincial Department of Finance has issued the Measures for the Control of Public-Private Partnership Earmarked Fund (PPP), begun to draw up guidelines for project access and approval process, and undertaken complete investigation on the projects and preliminary screening.
At present, China is trying to regulate the local government financing mechanism, deepen the reform of the fiscal and taxation system and build a modern fiscal system. PPP Earmarked Fund will enhance the confidence of social capital, and attract more social capital and financial institutions to enter the PPP field. At the same time, the professional operation of fund management team provides investment, financing and advisory services, ensures the standardized and orderly promotion and operation of PPP projects, motivates governments at all levels to promote and adopt the PPP mode, and facilitates regional economic development.
At present, Fujian province’s PPP projects are in the forefront in China. As of July 30th, the public-private partnership (PPP)in Fujian province has signed agreements with 34 projects, accounting for 13.65% of the total number of the national registration platform, and has settled down a total investment of RMB 51.7 billion, and introduced 46 non-governmental capital providers.
As the only Fujian-based national joint-stock commercial bank, in recent years, IB gives full play to the advantage of group integrated operation, vigorously supports innovation in terms of infrastructure in Fujian province and investment and financing mechanism in public services, serves economic and social development in the region, and gradually explores a new mode featuring the commercial banks participate in the investment and financing reforms of the local governments.
Meanwhile, IB maintains an innovative and enterprising attitude, actively adapts to economic new normal, supports national supply-side structural reform via industrial fund, as well as taps and seizes new market opportunities. Since this year, it participated in establishing Guohua Military-Civilian Integration Development Fund and Fujian Technical Reconstruction Fund, providing strong support for national and regional economic restructuring and supply-side structural reform.