Efforts to rein in risky PPP projects pay off

The central government's efforts to cool down local government debt growth with a six-month clampdown on illegal joint fundraising activities by the public and private sectors have delivered results, said the Ministry of Finance.

Nearly a quarter of the approved public-private partnerships projects, an investment model based on cooperation between government and private companies, had been suspended by April 23, following a nationwide investigation, said the Ministry of Finance.

The ministry said that 1,695 PPP projects, worth a total of 1.8 trillion yuan ($284 billion), had been shut down, while a further 2,005 projects worth 3.1 trillion yuan had to be "rectified". Around 6,400 PPP projects were registered with the ministry before the clampdown started last November.