BEIJING - World Bank member International Finance Corporation (IFC) signed an MOU with central China's Yichang city for a public-private partnership (PPP) on Wednesday to boost the city's economy and provide essential public services.

This partnership is the IFC's first PPP infrastructure advisory with a Chinese city, and it will hopefully support growth in Yichang by helping businesses improve productivity and tap new markets, according to Philippe Le Houerou, IFC Executive Vice President and CEO.

The partnership will focus on projects such as healthcare, transportation, the environment and sanitation. Under the terms of the MOU, Yichang and IFC will collaborate to identify suitable private sector partners, structure projects, and carry out capacity-building activities.

The PPP has become an important tool to help governments worldwide facing fiscal challenges to draw on the strengths of the private sector and drive economic growth.

China has encouraged PPP as a means to attract private investment for public projects amid downward economic pressure. China's insurance regulator decided to allow insurance companies to invest in PPP programs on Monday.