Some things to keep in mind in PPP project compliance review

Since 2014, the public-private partnership (PPP) model has been well regarded and widely applied by every level of government. The State Council, ministries and local authorities have all issued legislation providing legal guidance on PPP project compliance.

Conducting a compliance review of a PPP project prior to execution is essential in order to avoid any legal obstacles. The Ministry of Finance’s (MOF) Notice on the Issuance of the Operational Guidelines for the Public-Private Partnership Model, issued for trial implementation, sets out that a feasibility study, project output specifications and a preliminary implementation plan be provided for greenfield or rehabilitation PPP projects. The notice also provides that historical data about the existing public assets, the project output specifications and the project’s preliminary implementation plan must be submitted for compliance review of existing projects. This indicates that a feasibility study and official replies are the main focus of the review.

In practice, if the project proposal has been approved, the PPP project may proceed to preparing for the execution stage.

Liu Xiaojun is a senior partner and Xing Limiao is an associate of AllBright Law Offices