Ministry of Finance: Standardize the construction and operation of existing PPP projects, and encourage financial institutions to optimize financing structures.

Recently, the Ministry of Finance, together with relevant departments, has studied and drafted the "Guiding Opinions on Standardizing the Construction and Operation of Existing Projects in Government and Social Capital Cooperation". A relevant person from the Ministry of Finance pointed out that currently, about 70% of PPP existing projects have entered the operation period, and their operation directly affects the quality and efficiency of public service supply. The guiding opinions require that under the current market interest rate level, there is a reasonable space for reducing interest rates and extending deadlines for existing project loans. It is advisable to adhere to the principle of seeking truth from facts, encourage financial institutions and social capital parties to actively negotiate, adjust repayment plans, lower interest rates, extend deadlines, or exchange, support optimizing project financing structures. In addition, the guiding opinions require local governments to incorporate expenditures into budget management as required, pay in a timely manner based on performance evaluations, and not delay completion times or postpone performance evaluations. In cases involving overdue payment of enterprise accounts, they should be resolved promptly and properly in accordance with relevant national regulations. Social capital parties are required to provide public services in accordance with relevant quality and standards as stipulated in the contracts. Translated byTranslated by: (Mulan Translation Agency)