Moody’s Investors Service says that public-private partnerships (PPPs) in China (A1 stable) continues to grow in number and investment value, with more projects advancing to the implementation stage this year.
“Support from the central government has resulted in positive regulatory developments in China’s Public Private Partnership (PPP) framework, thereby enhancing the financing options available to PPP developers and investors”, says Osbert Tang, a Moody’s Vice President and Senior Analyst.
“And, regulations that increase transparency and improve investor protections are positive for the ongoing development of the PPP sector,” adds Tang. Moody’s explains that the improved regulatory transparency of longer-term financing provides greater clarity to private sector investors.
Moreover, the increased availability of longer term financing will likely increase the attractiveness of China’s PPP projects to the private sector, because it will allow investors to better match the long-term cash flow from such projects.
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