The 6th China PPP Forum was successfully held, focusing on the healthy and sustainable development of PPP for the "14th Five Year Plan"

On December 26, 2021, under the guidance of the National Development and Reform Commission and the United Nations Economic Commission for Europe, sponsored by Tsinghua University, co sponsored by the Research Center for Government and Social Capital Cooperation (PPP) of Tsinghua University, the China Development Planning Institute of Tsinghua University, and the Institute of National and Global Governance of Tsinghua University, and co organized by the China University PPP Forum and the China PPP Advisory Agency Forum, the sixth China PPP Forum was successfully held in the West Suburb Hotel in Beijing, It was broadcast live through the video number of Tsinghua University. The theme of the forum is "PPP healthy and sustainable development for the 14th Five Year Plan".

Xu Lingming, Deputy Director of the National Energy Expert Advisory Committee, member of the National Climate Change Expert Committee, former Director of the National Development and Reform Commission Energy Administration, former Counsellor of the State Council, Wang Tianyi, Co Director of the PPP Research Center of Tsinghua University, Chairman of the Board of Directors of China Everbright Environment (Group) Co., Ltd., member of the PPP Expert Committee of the United Nations Economic Commission for Europe, Han Zhifeng, Deputy Director of the Investment Department of the National Development and Reform Commission, Huang Huadong, Chief Economist of Guangdong Provincial Development and Reform Commission, Li Kaimeng, Chief Economist and Director of Research Center of China International Engineering Consulting Co., Ltd., Secretary General of China PPP Consulting Forum, Chen Huaqiang, General Manager of China Government Enterprise Cooperation Investment Fund, Wang Shouqing, Chief Expert of Tsinghua University PPP Research Center and Director of Academic Committee of China University PPP Forum, Tony Bonnici, head of the PPP Center of the United Nations Economic Commission for Europe, attended the morning keynote forum and delivered speeches. The keynote forum was hosted by Yang Yongheng, co director of the PPP Research Center of Tsinghua University, executive vice president of the China Development Planning Research Institute of Tsinghua University, professor of the School of Public Administration of Tsinghua University, and secretary general of the China University PPP Forum.

Xu Lingming delivered a keynote speech entitled "A Hard Battle to Achieve Peak Harmony and a Great Examination to Administer the Country". He reviewed the national concepts and policies in green, low-carbon and digital economy in recent years, deeply explained the significance of achieving the goal of carbon peak and carbon neutralization and accelerating the construction of an energy power, outlined the basic content of the "dual carbon" work, and analyzed the capacity requirements for promoting the "dual carbon" work. He believed that it is necessary to deepen the understanding of the law of energy development, correctly understand and grasp the "double carbon", accurately identify, respond scientifically and take the initiative to change. He emphasized that in order to achieve carbon neutrality, science and technology are the key, green new technology, and innovation is the key to winning the championship. We should reduce carbon step by step, gradually neutralize, save energy, improve energy efficiency, create methodologies, build models, use big data, and cultivate new thinking, and unswervingly achieve the goal of "double carbon".

Wang Tianyi delivered a keynote speech entitled "Innovation of PPP model under the carbon neutral target: from people-oriented to carbon oriented". He pointed out that the PPP model needs to emphasize people first, and the biggest challenge affecting sustainable human development is climate change. To achieve carbon neutrality to avoid global warming is the biggest "people first". Under the goal of carbon neutrality, it is necessary for PPP model to emphasize "people-oriented" and "carbon oriented" at the same time, and even realize the improvement and leap from people-oriented to carbon oriented. He used the concept of "entropy" in physics to analyze, and proposed that many current PPP projects should take green and low-carbon as the core value pursuit. He pointed out that the carbon based PPP model needs mechanism innovation, including increasing climate impact assessment, increasing carbon value for money assessment, striving for green financial support, and reasonable returns should be included in carbon trading income. He pointed out that, considering the development trend of global enterprises, the PPP model needs to pay attention to ESG investment, that is, to ensure the sustainable development of enterprises through the three core elements of environment, social responsibility and corporate governance. The combination of PPP and ESG is the PPP model that keeps pace with the times, and also reflects the value of ESG, which is also the important work that Tsinghua PPP Research Center will promote next.

In his keynote speech, Han Zhifeng looked forward to the development trend of investment and financing practices such as PPP, REITS and ESG, and analyzed five key factors that affect the future development of PPP model. First, policy factors. A series of important documents issued by the CPC Central Committee and the State Council, the outline of the "Fourteenth Five Year Plan" and this year's Central Economic Work Conference have pointed out the direction for PPP development. Second, demographic factors. The total population, structure, regional distribution and other factors directly affect the appropriateness and profitability of PPP project construction. Third, financial factors. Making good use of infrastructure REITs will help solve the financing problems of PPP projects, and infrastructure REITs also put forward higher requirements for the operation management and scheme design of PPP projects. Fourth, technical factors. Investment and construction must conform to the trend of digital transformation, and PPP projects also urgently need to implement digital investment and construction. The fifth is the factor of socially responsible investment (ESG). The essence of ESG is not only to consider commercial returns, but also to consider social benefits. He believes that China's socially responsible investment will continue to develop by leaps and bounds, and should attach great importance to how to promote ESG evaluation of investment projects, and guide financial institutions to provide financing support for investment projects based on the evaluation results.

Huang Huadong introduced the practical exploration of promoting infrastructure REITs in Guangdong Province in his keynote speech. He said that infrastructure REITs are of great significance for revitalizing existing infrastructure assets and easing the pressure on infrastructure investment funds. Exploring and promoting the combination of infrastructure REITs and PPP is a new way to expand the scale of social capital introduced. He pointed out in combination with specific practical cases in Guangdong Province that the issuance of REITs can expand financing channels, revitalize existing assets, forge talent teams, and promote enterprise development, but it should also pay attention to project selection, accelerate early preparation, ensure project compliance, and strengthen post issuance operation management. He believed that the promotion of infrastructure REITs still faced problems such as insufficient willingness of enterprises to issue, imperfect policy system, and scattered project assets meeting the issuance conditions. He suggested that the government departments should do a good job in sorting out and reserving projects, and improve the REITs issuance policy support system, project review mechanism, and industrial development support system.

Li Kaimeng delivered a keynote speech entitled "Promoting 'Responsible Investment' in PPP Mode". He believes that "responsible investment" needs to be evaluated from six dimensions: demand reliability, engineering feasibility, operational effectiveness, financial rationality, impact sustainability, and risk controllability. "Responsible investment" requires institutional reform and innovation, and the PPP model is an effective tool to promote institutional reform and innovation. He emphasized that the PPP model promoted the basic role of feasibility study, and required to clarify the project needs and output requirements. We should attach importance to the systematic research of construction and operation plans, promote the quality improvement of special research on financial plans, attach importance to the professional demonstration of project impact effects, emphasize the risk control throughout the project cycle, improve the preparation and evaluation of PPP project implementation plans, and effectively promote the quality improvement of feasible research.

Chen Huaqiang delivered a keynote speech entitled "Investment Practice and Thinking of China's Government Enterprise Cooperation Fund". He said that since the establishment of the China Government Enterprise Cooperation Fund, it has continued to give play to the functions of "guidance, standardization and credit enhancement", actively serving the country's major strategies, and supporting innovation. In recent years, it has increased support for new infrastructure, ecological environment protection, science, education, culture, health, sports and tourism, and paid attention to risk control and post investment management. He believes that all parties attach great importance to the PPP model, strengthen their sense of standardization, and improve both the quality and the implementation rate of warehousing projects. PPP has broad prospects and needs to promote high-quality development. In order to promote the high-quality development of PPP, he shared his thoughts on optimizing the development environment of the PPP industry.

Tony Boniqi congratulated on the successful convening of the sixth China PPP Forum in his speech. He said that the UN 2030 Agenda for Sustainable Development called for the establishment of new investment and financing mechanisms such as PPP to achieve 17 sustainable development goals. At present, many countries are promoting the "people-oriented" new PPP model to bring value to human beings and the earth. He pointed out that the United Nations Economic Commission for Europe directly derived a series of indicators such as the financial sustainability of the project, fairness in access to public services, and stakeholder participation based on the sustainable development goals to evaluate and score PPP projects. This method applies to infrastructure projects, including "One Belt and One Road" projects, and hopes to be promoted in China.

Wang Shouqing said in his concluding speech that in the morning, the guests of the forum discussed the new trends of PPP development, including "carbon based" PPPs, infrastructure REITs, ESGs, etc., which have a good inspiration for the future development of PPP. He hoped that when designing PPP projects, he could fully consider the possibility of REITs and promote the high-quality development of PPP projects. He introduced the Annual Development Report of China's PPP, and hoped that everyone would put forward valuable suggestions and actively contribute to the annual report next year, so as to jointly provide advice and suggestions for the development of China's PPP.

Yang Yongheng, on behalf of the organizer of the Forum, welcomed the arrival of all the leading guests, and thanked the National Development and Reform Commission and the United Nations Economic Commission for Europe for their guidance and support, as well as the concern of friends from all walks of life. He said that the sixth China PPP Forum focused on "the healthy and sustainable development of PPP for the 14th Five Year Plan", which is to thoroughly implement the spirit of the 19th National Congress of the Communist Party of China and the Fifth and Sixth Plenary Sessions of the 19th Central Committee of the Communist Party of China, build a platform for communication and dialogue among the PPP policy, theoretical and practical circles, summarize new practices, new achievements, new opportunities and new challenges of China's PPP development since the beginning of the 14th Five Year Plan, summarize experience, sort out problems, unify consensus Plan for the future, and contribute wisdom to standardize and orderly promote PPP and promote high-quality development of China's PPP cause. He said that, standing at a new historical stage, the PPP Research Center of Tsinghua University will gradually expand its work to infrastructure REITs, ESG, investment and financing cooperation and docking, based on PPP, and continue to help innovation and practice of infrastructure investment and financing models.

In the afternoon, two sub forums were held in the form of online meetings. The theme of the first sub forum is "Promoting ESG concept and stimulating social investment vitality", presided over by Li Zezheng, Deputy Director of the Financing Office of the Investment Institute of the National Development and Reform Commission and Deputy Director of the PPP Center. Wang Xiaoguang, director of the Carbon Peak Carbon Neutralization Promotion Center of the China Federation of Industrial Economics and director of the Center for Promoting Corporate Social Responsibility of the China Federation of Industrial Economics, Wang Xiaoshu, head of the Asia Pacific region of the ESG Research Department of MSCI Mingsheng Index, Liu Shijian, chairman of Beijing Huafu Zhiyuan Technology Development Co., Ltd., general manager of Beijing Qingkong Weishi Consulting Co., Ltd., and deputy director of the Investment and Financing Special Committee of Tsinghua University PPP Research Center, Li Xiongkun, Executive Deputy General Manager of Infrastructure Management Center of Longyuan Group and General Manager of Hangzhou Urban Investment Construction Co., Ltd. respectively made special speeches to exchange their understanding and thinking on ESG concept, analyze the international trend of ESG investment and the characteristics of China's practice, and look forward to the prospect of ESG investment for implementing the "dual carbon" strategy and promoting the high-quality development of China's economy.

The second sub forum, themed "New Fields and Journey of PPP", was chaired by Song Jinbo, a professor of the School of Economics and Management of Dalian University of Technology and the Executive Deputy Secretary General of China University PPP Forum. Xu Chengbin, Deputy Director of Research Center of China International Engineering Consulting Co., Ltd. and Deputy Secretary General of China PPP Consulting Forum, Chen Hongneng, Chairman of Beijing Jinzhun Consulting Co., Ltd., Yang Baokun, Chairman of Yunnan Yunling Engineering Cost Consulting Co., Ltd., Executive Director of Performance Management Research Professional Committee of China Institute of Finance, Council Director of Investment and Financing Branch of China Institute of Technology and Economics, partner of Zhonglun Law Firm Zhou Lanping, a specially invited supervisor of the Third Intermediate People's Court of Shanghai and an arbitrator of the Shanghai Arbitration Commission, and Wang Yingying, a senior research assistant of the PPP Research Center of Tsinghua University and a postdoctoral fellow of the School of Public Administration, respectively made special speeches, analyzing the new trends and features of PPP in the past three years, discussing the three ways PPP projects can lead to public REITs, and sharing that PPP can help major water conservancy projects innovate mechanisms, scientifically carry out investment and financing planning Make good use of the PPP contract demonstration text.

"China PPP Forum" is a brand forum launched by the PPP Research Center of Tsinghua University. Since 2016, the "China PPP Forum" has been held for five consecutive times, focusing on the themes of "PPP and New Urbanization", "The Belt and Road" and PPP "," Clean up the Source, Standardize Development - Towards Healthy and Sustainable PPP "," Green PPP and Regional Sustainable Development "," New Stage, New Concept, New Pattern, New PPP ", etc., which is currently the highest level in the domestic PPP field, with the most experts participating One of the most influential professional annual brand forums, known as the wind vane of China's PPP industry in the industry, has played a positive role in promoting the stability, integrity and innovation of China's PPP industry.

(Excerpted from Jianshe Xinwang)