This report was commissioned by KfW Entwicklungsbank (Development Bank), the lending arm for the Financial Development Cooperation of the German Government and the Chinese Ministry of Finance to provide a review of Public Private Partnerships (PPP) in the water supply, wastewater and solid waste sectors in the People’s Republic of China. It is to provide a background for the design of PPPs in the ongoing Sino-German Programs for the provision of sustainable urban infrastructure and a seminar on the same topic to be held in Beijing on 25th-26th June. The seminar, to be held under the auspices of the Ministry of Finance and the Ministry of Construction, will gather officials from Chinese municipal and Provincial governments.
PPP in the water supply, wastewater and solid waste sectors has rapidly increased since the early 1990s, through a variety of models including divestitures. The central Government has been developing a legal and regulatory framework with increasing levels of details, although implementation at the local government level has proceeded at diverse paces and resulted in broad diversity of legal frameworks. Financing for such contracts has come from a broad array of sources, including private investors as well as domestic and foreign lenders. International lenders, such as KfW, have a key role to play in this process, as they can provide technical assistance on good processes and governance arrangements as well as much needed finance.
This report was produced by a consortium led by Trémolet Consulting and Unirule Institute of Economics, in association with the China Center for Public-Private Partnerships (CCPPP), Jensen-Blanc-Brude Ltd, Pinsent Masons and Shanghai Jumbo Consulting Co., Ltd.