BEIJING Dec 19 China's government said on
Monday it will promote public-private partnerships in its
agricultural industry, the latest step to open up and modernise
the nation's vast farming sector.
Two key government bodies said in a joint statement they
would support private capital being injected into areas of the
sector such as crop and livestock protection, infrastructure
development and improving the quality of farmland.
China has used the PPP financing model to boost other
sectors as growth in the world's second-largest economy slows
and the government aims to clamp down on traditional off-balance
sheet borrowing methods used by local authorities.
Finding new ways to fund rural economic growth would help
develop one of the nation's largest industries, which has been
reliant on government cash until now.
The release from the National Development and Reform
Commission (NDRC), China's top economic and industrial planner,
and the Ministry of Agriculture, did not offer many concrete
The aim would be to promote supply-side structural reform in
agriculture, along with "sustainable and healthy" development of
To attract investors, the government will need to provide
most of the funding for projects and keep close tabs on their
implementation, said Ma Wenfeng, an analyst at the Agricultural
Bank of China.
In other PPP, some local governments chasing investment and
GDP growth have expanded the scope of projects and dressed up
purely commercial projects as public-private partnerships, the
government warned last week.
"With the participation of private capital, economic
development efficiency will be higher. But still the government
needs to pay the larger share in those key areas and also
strengthen supervision on the implementation of those projects,"
(Reporting by Hallie Gu and Josephine Mason)