PPP rules tightened to reduce fiscal risk

China will reinforce regulations on public-private partnership projects as part of its efforts to prevent illegal borrowing by local governments, according to a senior official with the nation's top economic regulator.

"Strengthened supervision over local governments' financing for PPP projects, which began earlier this year, marks a new starting point (in PPP management)," said Han Zhifeng, deputy head of the Fixed-Asset Investment Department of the National Development and Reform Commission.

It will be a long-term process, he told China Daily. "Local governments should adapt to long-term strengthening of oversight."