In June 2015, CITIC Trust Co., Ltd. (“CITIC Trust”) successfully completed the PPP investment project of “2016 Tangshan Horticultural Expo Infrastructure and Supporting Facilities”. This PPP project is the first of its kind in China’s trust industry, and is a worthy attempt by trust companies to directly invest in PPP projects. The total amount of the investment is 3.362 billion yuan, of which CITIC Trust invests 608 million yuan as social capitals and holds 60% of equity of the project company. The construction and operation period of the project is 15 years, and source of income is return of the project as well as subsidies. Jingtian & Gongcheng is the special legal counsel of CITIC Trust in the project, and is fully involved in the legal services of the PPP project.

CITIC Trust is a national non-bank financial institution with trust as its main business, which is the largest assets management trust company with leading capabilities in China. It was elected in 2009 as the Chairman of China Trustee Association and was reelected in 2012.

PPP model is also called “cooperation between government and social capital” model. It can reduce the debt burden of governments and enhance the efficiency and quality of public goods, and therefore is promoted vigorously by governments at various levels since Opinions of the State Council on Strengthening the Management of Local Government Debt (Document No. 43) was promulgated in September 2014. According to experts, PPP model will provide a much bigger investment space for financial institutions such as trust companies and banks.