China tightens PPP rules to reduce fiscal risk

BEIJING - China will reinforce regulations to monitor public-private partnership (PPP) projects as part of its efforts to prevent illegal borrowing by local governments, said a senior official with the nation's top economic regulator.

"Strengthened supervision over local governments' financing for PPP projects, which started earlier this year, marks a new starting point (in PPP management)," said Han Zhifeng, deputy head of the fixed-asset investment department of the National Development and Reform Commission.

Such strengthening of supervision will be a long-term measure, he told China Daily. "Local governments should adapt to long-term strengthening of oversight."

Han also said risk control measures will be extended to specific PPP projects in the future. "Control of risks should be improved at an early phase and carried out on a case-by-case basis," he said.  www.webershandwick.cn (ATI).