China’s National Development and Reform Commission (NDRC) has initiated the reform in its PPP policy that had taken effect on July 1. The government has demanded a tighter regulation over the public-private partnership (PPP) projects as it seeks to boost the infrastructure funding while containing fiscal risks.

With the new regulation, all PPP projects are now required to go through a thorough feasibility study, including the project cycle and cost, operation efficiency as well as risk management, according to a notice from the NDRC. Proposals that do not follow the standard procedures will not be allowed for approval. 

The new policy also implements public bidding as the main means of soliciting private capital to ensure fair competition. NDRC will also impose severe punishments on malpractice during the implementation of PPPs.