Beijing, June 24, 2004
—China’s Ministry of Finance and the International Finance Corporation, the private sector arm of the World Bank Group, announced plans to sponsor a Public-Private Partnership Forum from October 24-26, 2004 in Huangshan, Anhui Province. The event will bring national, provincial, and municipal government officials together with international and domestic infrastructure industry executives. They will consider partnership models that can encourage increased investment in the areas of gas distribution, solid waste, urban transport, and water and wastewater. Projects from around the country will be exhibited to highlight investment opportunities in the interior regions of China and match projects with potential sponsors.
The investment needs in China’s infrastructure are large. In addition to the investment required to meet China’s high economic growth, urban population is expected to increase by more than 150 million over the next decade. This conference will consider how the infrastructure needs of this growing population can be met, including the policy and business climate changes needed to encourage increased urban infrastructure investment in China. It will consider how private providers of infrastructure and local authorities can work together to develop partnerships that meet different interests. It will also cover opportunities that exist for financing of municipal entities.
“China faces an enormous infrastructure investment gap in the coming years. To fill it, the government must work with private companies to establish models and promote specific investment projects that put these into action,” said Mr. Zhao Xiaoyu, the Director General of International Department of MOF. “This conference will focus not just on policy issues, but delivering increased investment in China’s urban infrastructure.”
“We believe the emphasis for promoting badly needed investment today should be put on raising awareness, directing subsidies to where they can be most effective, and increasing investment from all sources, whether public or private,” said IFC China Country Manager Karin Finkelston. “This conference will allow large investors and government officials alike to consider a wider range of options for public-private partnerships that can lead to more urban infrastructure investment.”
The conference is being sponsored jointly by MOF and IFC. Vice Minister Li Yong will be among the keynote speakers at the conference. IFC will provide keynote and expert speakers. Large international and domestic infrastructure companies and investors are being invited to speak. IFC and MOF will also be seeking other cosponsors interested in contributing in various ways to promoting successful dialogue and increased investment in Chinese infrastructure.
China’s Ministry of Finance is a key economic policy setting ministry within the Chinese government. Its International Department is responsible for a wide range of activities promoting international links, including research and analysis of the international financial and economic issues, providing policy advice and implementing projects. As the China’s focal point of international financial institutions, such as World Bank Group and Asian Development Bank, it has been successfully attracted RMB 417.5 billion for over 500 projects since the early of 1980s.
The mission of IFC is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. IFC has provided $1.7 billion in financing to more than 70 Chinese projects since 1985. From its founding in 1956 through 2003, IFC has committed more than $37 billion of its own funds and arranged $22 billion in syndications for 2,990 companies in 140 developing countries. IFC's worldwide
committed portfolio as of 2003 was $16.8 billion for its own account and $6.6 billion held for participants in loan syndications.
