Decision-making Of Applying Ppp Model In Quasi-commercial Infrastructure Projects And Its Government Supervision

Quasi-commercial infrastructure projects influence on social welfare and play the leading role in national economy. Consequently, more attention was paid to the performance of such projects. With the process of urbanization, the demand for quasi-commercial infrastructure projects is growing. However, due to financial pressures and management constraints of government, it is inefficiency for government to invest in quasi-commercial infrastructure projects.The characteristics of quasi-commercial infrastructure projects and quasi-commercial product or service are generalized and summarized in the beginning, using literature reading and basic theory research methods. On base of these, strengths and weaknesses of both government direct investment model and public-private cooperation model are compared, and the feasibility and advantage of applying PPP is presented. Subsequently, using comparative analysis, empirical analysis and other methods, evaluation and decision making methods of Public-Private Partnership (PPP) financing model are elaborated in this paper. Take a highway project for example, theoretical basis and calculation method of value for money (VFM) is illustrated with emphasis. Finally, on base of the analysis of decision-making method of PPP mode, governmental supervision on quasi-commercial infrastructure projects with PPP mode is analyzed. Then this paper makes recommendations on the design of the framework and proposes the conception of information supervision. According to the study of scientific decision-making and effective governmental supervision, it is hoped make progress to increase utilization efficiency of social resource. Consequently, quasi-commercial infrastructure projects would satisfied the public demand of quasi-commercial product or service, and achieve maximum economic and social benefits target.