Taking cash flow as an example, the loan opinion requires that urban infrastructure and public service projects need stable operating cash flow, and the income paid by project users and the government should cover the loan principal and interest in full. In addition, the payer involved is the public. If the project fails to pass the price hearing mechanism, effective mortgage guarantee methods should be added; If the project fails to pass the price hearing after completion, the loan shall be stopped immediately, and the customer shall be required to repay the loan principal and interest and related expenses immediately.
As the CBRC has not defined and required the PPP loan, the submission believes that these loan conditions are only the most basic principle requirements for PPP projects. However, in the view of some PPP experts, these conditions are too harsh, which actually represents the wait-and-see attitude of commercial banks towards PPP project financing.