In a bid to support public-private partnership projects, China will provide rewards instead of subsidies in a pilot scheme starting from next year.
The Ministry of Finance said private partners in the PPP demonstration projects will be offered three-tier rewards based on investment scale.
The ministry also encouraged uncompleted locally-funded public service projects to transform into PPP model projects, rewarding then with 2 percent debt reduction.
The reward program will be trialed for three years, as the central government phases out the old subsidy scheme.
On Wednesday, China's top economic planner said that the country has a total of over 2,100 potential PPP projects valued at 3.5 trillion yuan, or 540 billion U.S. dollars.
In September, the Finance Ministry initiated a fund with 180 billion yuan to support PPP projects.
