The National Development and Reform Commission (NDRC) has issued a circular to promote public-private partnerships (PPP) in traditional infrastructure fields.

According to the circular, development and reform departments in various places should coordinate and make an overall plan to establish a PPP projects library.

A unified evaluation mode should be established to improve efficiency. A related examination and approval mechanism should be set up and third-party evaluation be introduced.

Multiple payment modes should be explored to encourage private capital to innovate business modes and mechanisms. Costs in infrastructure fields need to be reformed. Private capital should have reasonable investment returns and governments’ spending pressures also need to be relieved.

The circular also asked to build up a diversified exit mechanism to increase the flow and value of PPP projects, and to attract more private capital. It also asked to make full use of financial institutions, encourage private and foreign investment and optimize the credit environment.

The circular lists seven traditional infrastructure fields promoting PPP projects, which includes: energy, transportation, water conservancy, environmental protection, agriculture, forestry and municipal construction.