PPP fund worth $27b to start operation soon

The Ministry of Finance, together with 10 financial institutions, last September jointly launched a 180 billion yuan fund that would support public-private-partnership projects.[Photo/IC]

The 180 billion yuan ($27.38 billion) public-private-partnership (PPP) fund, which has gained extensive attention, is likely to start operation soon and drive up investment over 1 trillion yuan, the China Business News reports.

The fund's operator China Government Enterprise Cooperation Investment Fund Co Ltd is building its professional team and conducting due diligence in a bid to put the fund in place and launch project investment as soon as possible.

Some preparatory work is under way, and the final decision by the general manager has not been taken, Chairman Zhou Chengyue said during an interview with China Business News.

The company has started research on some PPP projects, including a big rail transit project in Inner Mongolia, Zhou added.

The Ministry of Finance, together with 10 financial institutions, last September jointly launched a 180 billion yuan fund that would support public-private-partnership projects.

The company's first shareholders' meeting was held in March.

According to the filing, the company's nine legal shareholders are CITIC Group Corp, Everbright Pramerica Fund Management Co Ltd, CCB principal Asset Management, China Life Insurance, Bank of China Investment Management, ABC-CA Fund Management, Band of Communication International Trust, CCB Principal Capital Management Co Ltd, and ICBC Credit Suisse Asset Management Co Ltd.

Other investors include the National Council for Social Security Fund and the Ministry of Finance. The latter has an investment of 15 billion yuan, including the first batch 6 billion yuan.