Ministry plans rules to curb PPP misuse

Steps to prevent debt risks and exploitation of fiscal funds by local governments

The Ministry of Finance is expected to come out with detailed regulations for public-private partnership projects to curb potential debt risks and prevent the misuse of fiscal funds by local governments, officials said on Wednesday.

The new regulations would also lead to tighter management of the capital sources for PPP projects, prevent high-leveraged borrowing using government expenditure as collateral and excessive commercial bank lending to private parties, said Wang Yi, director of the finance department at the ministry.