Tele­coms company set for in­fu­sion of pri­vate cap­i­tal

China Daily (Canada) - - BUSINESS -

China Tower Co Ltd, a telecom­mu­ni­ca­tions tower company jointly es­tab­lished by the Big Three car­ri­ers — China Mo­bile, China Tele­com, and China Unicom — is ex­pected to kick­start its plans to ab­sorb pri­vate cap­i­tal next year, the Eco­nomic In­for­ma­tion Daily re­ported on Thurs­day cit­ing a source close to the mat­ter. The re­port said if ev­ery­thing goes well, China Tower will open some parts of its business to pri­vate in­vestors in 2015. Bai Yingzi, di­rec­tor of China Tower’s co­or­di­na­tion of­fice, said China Tower will be in­cluded in the pi­lot State-level pro­gram for re­forms in the own­er­ship of State-owned as­sets. cen­tral gov­ern­ment has cham­pi­oned this model for a year now as China is grap­pling with huge lo­cal gov­ern­ment debt due to its rapid ur­ban­iza­tion. The guide­line has rec­om­mended var­i­ous PPP modes for dif­fer­ent projects ac­cord­ing to its prof­itabil­ity, which range from au­tho­riz­ing fran­chis­ing, in­clud­ing build-op­er­ate-trans­fer, and build-own­op­er­ate. It of­fered a for­mat for a PPP project’s gen­eral con­tract, and re­quired lo­cal gov­ern­ments to build a PPP project cat­a­log, and up­date the progress in­for­ma­tion on each project to Beijing ev­ery month since next year.

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