The government of China is reportedly preparing new legislation to govern public-private partnerships (PPPs). Regulations being drafted by the Ministry of Finance, the National Development and Reform Commission and the Ministry of Justice will provide local governments with a standardised framework to analyse PPP projects, with a focus on financing.

As well as providing tools to support governments' initial decisions as to whether to implement proposed PPP projects, the legislation will also support the structuring and management of projects, increasing long-term success.

The regulations will clarify governments' investment responsibilities in an effort to curb the use of PPPs as off-budget spending, protecting authorities from the fiscal risks of such activity.