"More precisely, the World Bank should conduct standardized review and rectification of PPP projects." Chen Min, an expert in PPP expert database of the Ministry of Finance and the National Development and Reform Commission, and general manager of Beijing Rongbang Ruiming Investment Management Co., Ltd. said yesterday that the reason was to prevent and control the hidden debt risks of local governments. The financial department has gradually extended the work of regulating local governments' disguised borrowing to financial institutions through government investment funds, government-social capital cooperation (PPP) and government purchase of services.
Banks have tightened PPP credit, and some people are worried that PPP projects will stop working and default. In this regard, Zhu Zhenxin said that banks are now more cautious about PPP, and tightening PPP credit is mainly manifested in two aspects: First, the approval of PPP projects that have not yet been loaned during the approval process is suspended; The second is to suspend lending for PPP that has already landed and conduct risk investigation. The impact on the first type of project is temporary, and it will be restarted after the PPP project is reviewed in March 20 18; The impact on the second category of projects is hard to say for the time being, depending on whether the landed projects can stand the test, and if they are legal and compliant, they will not be affected; If there are defects, the government, social capital and banks are likely to negotiate rectification and remedy, and try to continue to do so. After all, the cost of suspension is very high. If it is really impossible to reach an agreement, the PPP project may stop working, but it is unlikely that there will be a large-scale default. After all, the government, social capital and banks do not want to see this situation.
Chen Min pointed out that this kind of worry is unnecessary. If the project itself is legal and compliant, the income is considerable, the risks are controllable, and the credit enhancement measures are in place, there should be no problem in the later loan financing of PPP.
Chen Min suggested that the current credit policy for PPP projects is more standardized and strict, and higher requirements are put forward for the transaction structure design and procedural compliance of PPP projects. In the future, both local governments and social capital need to be more cautious when choosing projects and designing project schemes.
What is the impact of banks tightening PPP credit on related listed companies? Experts said that since 20 17, the National Development and Reform Commission and the Ministry of Finance have launched a number of policies to support the front-end investment, financing and exit mechanism of PPP projects, and policy changes are conducive to listed companies participating in PPP projects.
Palm Co., Ltd. recently announced that the company jointly won the bid for the "PPP Project for the Improvement of Human Settlements in Baoshan Central City Dam Area (Phase I)". The total investment of the project is about 654.38+0.05 billion yuan, accounting for 268.8838+0% of the company's audited operating income in 2065.438+06. After the formal contract is signed and successfully implemented, the project will have a positive impact on the company's operating performance in 20 18 and future years.
Zhu Zhenxin said that banks have tightened PPP credit, and the review of batch projects has become stricter, and the review cycle will be lengthened. If it fails to pass the audit, the previous efforts of the relevant listed companies will be in vain. However, it is unlikely that the projects that have already landed will stop working and default, and it is rare for listed companies to terminate PPP due to financing problems. Therefore, for listed companies, the short-term impact may not be great, and the medium-and long-term impact depends on the quality and standardization of the previous projects.
Regarding how to standardize the development of PPP, Liu Zhe, director of the New Supply Center of Wanbo Research Institute, said yesterday that to standardize and innovate the PPP model and stimulate the enthusiasm of private investment participation, we must first further improve the legal system, clarify the rights and responsibilities of partners, and establish a sound exit mechanism. Secondly, use market-oriented pricing methods to establish a reasonable return on investment mechanism. Thirdly, innovate the participation mode of private investment, such as through financial means such as asset securitization and equity transfer, balance the contradiction between the long period of PPP projects and the short-term interests of private investment, and improve the willingness of private investment to participate.
Everything is dominated by banks.