China's infrastructure investment: Current situation, problems and countermeasures

(2) Expand funding channels and reduce infrastructure financing costs

The characteristics of strong public welfare and long cost recovery period of infrastructure determine that investment needs to match long-term low-cost funds. First, we will appropriately increase the issuance of government bonds and general bonds of local governments. We will give priority to the central and western regions and give priority to investment in non-operational infrastructure projects. Second, we will increase support from policy development banks for infrastructure projects. Set up an infrastructure investment fund to carry out equity investment in infrastructure projects, and provide long-term and low-cost financial support to major infrastructure projects in line with the national development plan. Third, explore the implementation of the "new and old separation" treatment of the stock debt of financing platforms to release the financing space of local financing platforms. Fourth, we will promote the integrated development and construction of non-operational projects and operational projects that are directly related to assets and income. The positive externalities of non-operational projects will be transformed into internal financial benefits of comprehensive development projects, and the enthusiasm of social investors will be aroused. Fifth, we will encourage qualified private capital to actively participate in key PPP projects. Reasonably set bidding conditions and return levels, rely on the capital market to enrich the exit mechanism for PPP projects, and moderately relax the 10% red line limit on financial commitment.

3. Improving resource factors and promoting the start of major projects

Concentrating on major projects is China's institutional advantage, and actively exploring the establishment of a resource factor guarantee mechanism for major infrastructure projects under the new situation. First, we will strengthen land use for projects. We will draw the red lines for the protection of cultivated land and permanent basic farmland, the red lines for ecological protection, and the boundaries for urban development, improve the efficiency of submitting applications for the conversion of agricultural land for approval, explore ways to increase the supply of mixed land, accelerate the redevelopment of inefficient urban land, and allow the disposal of land that has not been supplied through alternate use. Second, we will strengthen energy use guarantees for major projects. We will give priority to ensuring the rational use of energy in newly started projects, fully implement policies such as listing energy consumption for major national projects separately, deducting energy use for raw materials, and excluding new renewable energy consumption from total energy consumption assessment, and actively activate energy resources. Third, we will support the construction industry in accelerating investment in equipment. To ease the pressure on construction employment caused by the decline in labor supply. Improve the effectiveness of financial services for equipment investment, and optimize fiscal and tax support policies for enterprise equipment investment.