Project Finance 101 & the Role PPP Can Play in China

Published on 2012-09-05

The UK government is currently seeking to support project finance opportunities as part of increasing trade relations with China. Furthermore, that the Chinese Government’s latest re-adjustment following the 12th five-year plan has limited the access of local authorities to funds necessary to develop new infrastructure.

The UK government is currently seeking to support project finance opportunities as part of increasing trade relations with China. Furthermore, that the Chinese Government’s latest re-adjustment following the 12th five-year plan has limited the access of local authorities to funds necessary to develop new infrastructure.

On Wednesday 29 and Thursday 30, the British Chamber Shanghai and UK Trade and Investment were delighted to host a two day workshop on Private Public Partnerships and project finance in China and the pitfalls to avoid when establishing large scale projects.
Global experts gave their opinions on whether the time was right, as debt driven investment continues to burden Chinese economy, for British companies to take advantage of potential business opportunities and invest private funds in Chinese public projects.

PPP is potentially very lucrative for UK companies developing major projects in China but the speakers acknowledged that there was still a need to educate and promote its adoption by the Chinese Government at all levels, including SOEs. They also stressed how crucial it was to raise awareness of the mechanics of PPP amongst the British Business Community and ensure all parties in the process have an equal understanding.

The workshop addressed the following:

  • What is Project Finance, and more specifically, PPP?
  • How does it work and who is involved?
  • Why is now the right time for delivering large infrastructure projects in China under a PPP framework?
  • An introduction to the sponsorship and implementation of PPP projects.
  • Obstacles and challenges companies face when implementing a PPP project.

The speakers concluded that these trends present new business opportunities for Chamber members, but cautioned the high level of planning, bureaucratic cooperation and significant patience needed to successfully navigate such projects.

To receive the event presentations, please contact Deputy Executive Director Angela Lock at angela.lock@britishchambershanghai.org.