Current location - Trademark Inquiry Complete Network - Tian Tian Fund - What should you pay attention to when attracting investment in PPP projects?
What should you pay attention to when attracting investment in PPP projects?

First, financial institutions must strictly standardize financing management, strengthen risk identification, implement project access conditions, and prudently evaluate the financial capabilities and repayment sources of borrowers based on commercial principles.

When providing financing services for PPP projects, the project company must be the main financing subject, and the local government and its affiliated departments cannot be required or accepted to provide guarantees in any form such as guarantee letters, commitment letters, comfort letters, etc., and promise to repay the principal and interest on time.

Second, when reviewing the project company's loan application, it is necessary to comply with the PPP project agreement and require the project capital invested by the social capital party to be in place on time.

For PPP projects in which fund companies participate, the government cannot promise to repurchase them at a fixed value in the future or promise minimum returns. Fund companies must obtain the consent of creditors for early exit.

The third is to insist that the various approval requirements for PPP projects are legal and compliant.

Land, planning, environmental assessment, approval (approval, filing) procedures are complete, and project establishment and feasibility study approval procedures are complete; existing state-owned assets are included in the PPP project's due asset assessment and approval documents as equity and other assets at that time; local government's existing debt projects are converted into PPP

When implementing the project, we should insist on reducing the existing debt during implementation.

For some PPP projects where the approval documents are not standardized, rigorous, incomplete, or lack relevant requirements, financial institutions will be cautious or refuse to provide credit services.

Fourth, we must focus on providing financing support to private social capital parties.

Private investors have narrow financing channels, high costs, and financing difficulties, which put them at a disadvantage in participating in infrastructure construction and affect their enthusiasm for investing in infrastructure and public undertakings. However, the country has been committed to stimulating the vitality of private investment.

, and promote the sustained and healthy development of the national economy.

As a financial institution, we should focus on the operational risks of the project itself, not just its “identity”.

For eligible private capital PPP projects, financial institutions should actively provide financing services to enhance the investment confidence of private capital.