A Study Of PPP Model And Its Bottleneck In China

With the high speed development of economy of our country, the public utility did not fit in with the development of National Economy. If it just relies on government finance, we will have too many problems to deal with. It is urgent to resolve the problems that reinforce the supply of the public utility and getting the investment more efficiently, which are in the construction of infrastructure in our country.In recent years, the development of local personal economy establishes the substantial and technical base of the construction of utility for itself. The utility is Quasi- public product, of which the property is public welfare and profit. It will be a new subject that how to mobilize the social resource and make a new model that under the leading of Government the social capital participate in extensively. It will influence the old financing model that depended on Government purely. PPP model is a model that the Government and private supply the public products and service together to satisfy the request of each party, and they will share the venture and responsibility. PPP model is a new financing model of which the scope of use is broader. And it has obvious comparative advantage.Base of plenty of foreign or domestic literatures and the reality of our country, the thesis defines the definition and the scope of use of PPP model according to the essence of it. Then the thesis analyzes the necessity of application of PPP in our country on three aspects: first, the volume of supply of utility has been increasing each year. Second, the proportion of private investment has been increasing. Third, plenty of social funds are idle. The thesis nails down the objective and operating concept of PPP model, and constitutes the operating procedure by analyzing the present situation of applying PPP model. Because how to share the risk is the key to operate the model successfully, the thesis analyzes the risk of PPP model systematically, and introduce the principle of sharing them. Finally, the thesis concludes 8 factors, including law, venture, pricing, financing, talents and so on, which would restrict development of PPP model in our country. On the base of analyzing of these factors, the thesis suggests some corresponding measures.