(Yicai Global) Dec. 19 -- The Chinese government has funded CNY12.7 trillion (USD1.83 trillion) worth of public-private partnerships as of October this year, mostly in infrastructure and public works. The country's top economic planner and price setter and agriculture ministry are jointly pushing for similar investment in the agriculture sector.
China's National Development and Reform Commission and the Ministry of Agriculture are looking to enhance the overall efficiency and benefits of agricultural investment projects, the NDRC said on its website Dec. 19.
The government will encourage financial institutions to support agricultural PPP projects through various channels such as debt and equity investment and asset-backed finance.
Financial product and service innovations are to be upgraded, and various investment-financing models will be piloted such as investment-lending tie-up and investment-lending-discounting-subsidy integration.
Government bodies will collateralize loans with the expected profits or assets of a project.
The three areas identified in the promotion of private capital in modern agriculture projects are infrastructure and public services, waste and environment and IT and e-commerce.
Private investors will be supported in agricultural infrastructure construction and public services such as farmland, seed engineering, fishing ports, agricultural product quality and safety testing and traceability systems. Animal and plant protection projects will also get government support.
Private capital will be facilitated in agricultural waste resource utilization, agricultural non-point source pollution control, environmental protection and sustainable development projects for agricultural resources.
The government will leverage private sector investment in the construction of modern agricultural demonstration zones, agricultural Internet of Things and information technology applications, wholesale markets of agricultural products. Tourism and leisure-oriented agricultural businesses are also earmarked for support.