Hello everyone.
Yesterday, that is, on the 13th, I suddenly saw a notice on the official website of Caiz on the abolition of PPP related documents;
I have to say that it is another moment to witness history.
In less than a decade, PPP has risen rapidly from scratch to rapid decline.
Many of you must have experienced it firsthand.
I saw him get up the Zhu Tower, and I saw him feast guests, and finally I saw his building collapse ......
Originally a good PPP project, these two yearsIt's basically all scrapped.
Not only is management chaotic and fraud rampant, but also the phenomenon of waste of funds and greed is also serious.
Many projects are no longer able to be carried out, and most are left with a mess ......
Why are there so many problems?
Why is it so crowded with guests that people can't be avoided?
It also made many partners ask:
What is the problem with PPP?
Is PPP a merit or a fault?
Today, I would like to review with you the present, past and future of PPP projects
There's a lot of content.,It's still the old rules.,It's divided into three episodes;
Today, I will talk to you about the current situation of PPP;
Tomorrow I will talk to you about the past development history;
The day after tomorrow, I will talk to you about the restart and outbreak of the new model after PPP has been completely suspended, as well as what new opportunities there are in the future.
I hope it can be helpful to you and bring you some inspiration.
So let's talk about what is PPP
You should already be familiar with the concept:
The official definition of PPP (Public Private Partnerships) is:
A long-term cooperative relationship between government departments and private capital in the field of infrastructure and public services, usually in the mode that private capital undertakes most of the work of designing, building, operating and maintaining infrastructure.
What does that mean exactly?
To put it simply, PPP is a win-win model through public-private cooperation
Allowing private capital to access otherwise restricted areas;
For example, public transport, health resources, energy, health care and education.
Specific patterns include bot, boot, bt, tot, and so on.
For example, Beijing Metro Line 4 is a successful BOT project.
Beijing Municipality, Beijing Capital Group and the Hong Kong Railway Corporation cooperated to establish the Beijing MTR Corporation
Co-invest in the construction and operation of this project.
After 30 years of concession, the project company transferred the equity to Beijing Municipality free of charge.
When the new model of PPP emerged, everyone rushed to this new field.
So in 2014, my country set off an unprecedented upsurge.
In fact, before 2014, the PPP model was still in the tentative stage.
However, in 2014, the state issued an opinion on strengthening the management of local debt (also known as Circular No. 43).
This draft restricts the financing of the Z government, which makes the PPP model usher in an opportunity for development.
At that time, Cai Dad and Development and Reform also issued guidance one after another;
One policy after another has spread to local and social capital like a splash of wealth.
For a time, various local governments have set up PPP development centers to promote the project.
Personnel from various departments will be transferred to speed up the progress of PPP projects.
As a result, the PPP model was quickly widely used in projects at all levels
From subway stations, garbage disposal stations, sewage treatment plants, waste-to-energy plants, highways to hospitals, schools, parks, bridges and ......more
are included in the scope of PPP projects.
The PPP model has become very hot for a while, and any project can be labeled as PPP.
PPP is like a basket into which anything can be loaded.
But to be honest, there were some good PPP projects at that time;
For example, the Beijing Metro Line 4 we just mentioned
There are also some projects such as Tongzhou Sewage Treatment Plant and Sanya Waste-to-energy Power Plant that are very good.
In 2015, I remember that the most fashionable thing to do at that time was to ask if you had ever engaged in PPP.
It seems that as long as you participate, it will be as if you will be able to package and go public tomorrow.
Old shareholders must know that Fang Yuanlin, the first shareholder of PPP, is an example;
In 2017, Oriental Garden won the bid for a PPP project worth 35.9 billion yuan;
At that time, its stock price soared;
The actual controller, He Qiaonu, also became the richest man in Zhejiang Province.
But then various PPP projects exploded one after another;
Including the share price of Oriental Garden, which has also begun to fluctuate significantly
The richest woman in the past has even become an old ......
In fact, this incident also reflects the current situation of the PPP model in the past two years.
Including the Bird's Nest project, it is actually a typical PPP case.
After Beijing's successful bid to host the Olympic Games in 2001, it needed to build a stadium and landmarks.
Therefore, the Bird's Nest project was tendered to the global private parties, and the CITIC consortium finally won the bid.
Although the project structure of the Bird's Nest is more complex, involving multiple rights and partnerships.
But in fact, if you simplify it, in the end, it is Beijing State-owned Assets Management and CITIC Consortium that jointly set up a project company
Beijing's state-owned assets account for 50%, and the CITIC consortium accounts for 42%.
The project company is responsible for the investment, financing, design and construction of the project.
At the same time, Beijing Z Government granted the concession to the project company to operate for 30 years, during which the income went to the project company.
Thirty years later, the project company transferred the project to Beijing Z Prefecture free of charge.
However, the Bird's Nest faced the problem of not being profitable after the Games.
Outside of concerts, the business of the Bird's Nest is actually very limited.
The overall ticket price is cheap and the business atmosphere is weak;
Due to the inconvenience of parking and dining, coupled with the restrictions on commercial operations in Z Province;
For example, there is also a subway operating time limit, and the subway next to it only runs until 10 o'clock, so you can only drive after the concert, causing traffic congestion around you, and you can upgrade security measures;
And the noise is too loud to attract complaints from nearby residents.
A series of problems have made it very difficult to run a business.
Therefore, in 2009, the Beijing Municipal Government and the CITIC Consortium lifted the franchise restrictions
Change the management rights of the project company to permanent operation.
The Bird's Nest PPP project ended in a hasty failure.
In fact, looking back on the Bird's Nest project, the reason why we chose to end this PPP project ahead of schedule;
Mainly because of the inability to repay bank loans.
The shareholding structure has also changed completely
In addition to Beijing's state-owned assets, CITIC Guoan, Beijing Cultural Investment and BAIC Group all joined for the purpose of capital injection.
At that time, the controlling stake in Jingzhou, which entered as a foreign capital, had been frozen, which means that they also owed a lot of money and became a ......
In fact, these cases also reflect some problems in the development of the PPP model
So that brings me to the next topic:
PPP's past history and development history.
To be continued, we'll talk about ...... tomorrow