China’s finance ministry is pushing the public-private partnership (PPP) model at the local government level to meet the funding needs for urbanization, Economic Information Daily reported Wednesday. Authorities feel the model will alleviate the debt burden on local governments and make it a major funding source for the urbanization goal, it said. Sources were cited as saying that Harbin and Luoyang, as trial cities, have approved multiple projects based on the PPP model, while Shanghai city and the provinces of Heilongjiang, Henan, Zhejiang, Hunan and Fujian have also been aggressively preparing to launch similar projects. Deputy Finance Minister Wang Baoan said earlier this month that about 42 trillion yuan (US$6.74 trillion) of investment is needed by 2020 for urbanization, the report noted.
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