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Fiscal “zero investment” landed in Shandong's first education PPP project

Author: Yao Yao Mou silver marsh Source: China Financial and Economic News Published: 2019-10-31

"The main project can be completed in another month. Thanks to the mobilization of the municipal finance department to adopt the PPP model, this not only speeds up the progress of school reconstruction and expansion, but also does not require a penny for the finance!" Weifang Business School Infrastructure Office, Shandong Province Director Zhang Wei introduced us this way.

The project mentioned by Zhang Wei is a Weifang Business School Reconstruction and Expansion Project that is being constructed under the PPP model. This is currently the first fully user-paid education PPP project signed in Shandong Province.

Weifang Business School is a full-time public key secondary technical secondary school. The teaching quality and brand reputation are at the first-class level in the country, but the school's development is greatly restricted by the restrictions on the area and the scale of the building. Facing the reality of tight local financial resources and heavy burden of direct investment and construction, the Weifang Municipal Finance Bureau actively explored ideas, from the perspective of revitalizing existing assets and strengthening the operation of existing resources, proposed a full user payback model to support schools through PPP operations Proposals for reconstruction and expansion.

How to Operate Innovative Education PPP Projects

It is the key to the success of the project to adopt a full user payment method to operate the vocational education PPP project. In order to promote the Weifang Business School project from conception to reality, the Weifang Municipal Finance Bureau hired a high-level consulting service agency to conduct repeated studies on the feasibility of the project, deeply explore the project operation content and profit points, and scientifically compile the project implementation plan to ensure that the project benefits can be achieved. Full coverage of social capital cost inputs and reasonable returns.

After a series of efforts, the Weifang Business School PPP project finally realized the “zero investment” financial situation by revitalizing the existing assets of the old campus, transferring the school restaurant, the right to operate the supermarket, the right to build new dormitories, and the right to charge vocational education. The balance of input and output during the project cooperation period became the first successful full-user paid education project in Shandong Province.

It is understood that from the initial idea of the formal operation of the Weifang Commercial School Reconstruction and Expansion Project, the Weifang Municipal Finance Bureau has made a lot of efforts: to go to the school for field investigations, understand the status of school assets, and organize the operation of the old campus. Survey and evaluation of assets; hold project promotion meetings, invite more than 10 strong social capital parties to conduct inspections, solicit opinions and suggestions on project operation; hire high-level consulting service agencies to prepare project implementation plans, and invite experts from the Shandong Provincial Finance Department to review the plans and The contract (draft) is reviewed and verified to ensure that the project operation procedures are standardized and compliant; actively coordinate local financial institutions to provide financing support for the project; creatively propose ways to allow social capital to participate in school vocational education reforms, and mobilize the enthusiasm of social capital to participate in the project and implement it Laying the foundation.

In April 2019, Weifang Business School and Changyi Hualong Real Estate Development Co., Ltd. formally signed a PPP project contract and established a project company, and the project officially landed. The estimated total investment of the project is 100 million yuan. The cooperation period is 12 years, of which the construction period is 2 years and the operation period is 10 years. The project started construction in July, and as of mid-October, two-thirds of the main project has been completed. The successful operation of the project not only solves the key problems that have restricted the development of the school for a long time, but also promotes the distinctive characteristics of the school's brand specialty, laying the foundation for the next step of mixed ownership reform.

The operation mode of Weifang's financial department's innovative education PPP project is also leading and pioneering in the country.

The number of Weifang management library projects and contracted landed projects ranked first in the mainland of China

In recent years, the financial departments of Weifang at all levels have vigorously promoted the use of the PPP model and leveraged social capital to invest in public service projects based on the requirements of “advance innovation and practice advancement”. As of mid-October this year, the city has included 106 PPP comprehensive information platform projects of the Ministry of Finance, with a total estimated investment of 70.9 billion yuan; 91 management database projects, with a total estimated investment of 60.9 billion yuan; 69 projects have been signed and landed, attracting social capital investment 330 100 million yuan. The number of management library projects and contracted landed projects ranked first in the province's inland cities (including Qingdao); 4 projects were rated as national-level demonstration projects, which provided a new engine and injected new kinetic energy for the city's sustainable economic and social development; Weifang High-tech Zone Infrastructure Improvement Project, S102 Jiqing Line Qingzhou Bypass Reconstruction Project, Kuiwen District Yuyuan Experimental School, Linfu County Jingfu Nursing Care Home, Weicheng District People's Hospital, Zhucheng Smart Transportation Project, Xiashan District Citizens The operation of PPP projects in the municipal, transportation, education, pension, medical, science and technology, and cultural fields has achieved good economic and social benefits.

In order to standardize and orderly promote the operation of PPP projects, the Weifang Municipal Finance Bureau has adopted a number of measures to ensure the development of the work in accordance with the work idea of “standard operation and strict supervision”. The first is to pay attention to system construction and establish sound project operation procedures. Printing and issuing a series of standard documents such as "Opinions on Regulating the Operation of PPP Projects", "Operational Rules for PPP Projects in Weifang City", "Notice on Strengthening PPP Project Implementation Scheme Demonstration and Contract Review Management" and other regulatory documents to build a system that covers the entire process of project operation Provide institutional guarantee for the standardized operation of the city's projects. The second is to focus on process supervision and strengthen risk management and control of project operations. Establish a PPP consulting service system, and select a professional PPP consulting agency and a law firm in public bidding as PPP working consultants, and provide professional support such as program review and contract negotiation for municipal projects; organize all warehouses in counties and cities The project “two evaluations and one case” conducted professional review to improve the quality of the project scheme and the efficiency of storage, and reduce the risk of project operation. The third is to pay attention to work incentives and establish a sound project operation incentive policy. The Weifang Municipal Finance Bureau arranges 10 million yuan of funds each year to provide incentive support for standardized landing projects and demonstration projects; conducts municipal-level demonstration project innovation evaluations, is linked to the amount of awards and supplementary funds, and encourages counties and cities to actively compete for demonstration projects; strengthen the economy and society Develop comprehensive assessments, strengthen work supervision and inspection, and improve the sense of responsibility and urgency of county and urban areas in handling PPP work.

In April 2019, Weifang Commercial School PPP project was successfully signed

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