Research On The Encouragement Of Private Capital Entering The Benchmarking Infrastructure PPP Project

The PPP pattern has become a new type of institutional innovation that the partnerships are established between government and private capital to construct and operate the projects together. The problem of financial deficit is not only solved, but also inspire the vitality of the private capital. The project itself is public welfare and profitability in quasi-operational infrastructure PPP projects. The private capital has the characteristics of the pursuit of self-interest maximization, while most of the main causes of project failure is that the interests of the private capital cannot be guaranteed. how to motivate their participation in the PPP project has become a key problem.This paper referres to some relevant content from the National Natural Science Foundation of China (70962003):"Public infrastructure operating mode TOT Hall dimensional research", it takes the private capital as research perspective:Literatures are sorted out from the perspective of the PPP mode, contract and regulation, incentive on the basis of literature review and theoretical research to define the related concepts, theories of the PPP mode and establish foundation of the research. The dominant problem of private capital taking part in the project are put forward.The financial sustainability of the private capital and contractual incentive between public and private in the project need to be solved.The nature of private capital participating in the PPP projects are analysed. As this basic point, the the incentive basis and method are put forward by the analysis of factors related the cash flow and contract in quasi-operational infrastructure PPP projects. The financial incentive model and principal-agent incentive model are built on the basis of financial sustainable and the perfect degree of the contract to put forward measures of encouraging private capital participating in the project.The case analysis method are used to put the financial incentive model and principal-agent incentive model into use. The incentive effects of financial sustainability and contract between public and private are examined when private capital participate in quasi operational infrastructure PPP project.