VFM Evaluation System Research Of PPP Project Based On The Transaction Cost

With urbanization and One Belt and One Road being advanced, there is increasing demand for public facilities. While, the problem of national finance capital insufficiency is becoming more and more prominent, which prevent the development of China’s public service construction. PPP( Public-Private Partnerships) model which introduces social capital, alleviates the pressure of the funds effectively and improves the service efficiency, therefore, the government gradually promote the application of PPP model in the field of public service. This model is not all for infrastructure facility projects, in some cases, blindly adopting PPP model isn’t economical and efficient comparing with traditional government procurement model., it’s worth noting that the high transaction cost of PPP model may offset the benefit from the private capital to reduce production costs, which reduce the performance of the PPP, even making PPP model an inefficient way of governance. As a result, not only lead to the loss of public benefits, but also brings the negative influence to the government image. Therefore, Government is actively transforming Purchasing idea, pay more attention to the purchase value for money. But the evaluation of VFM in our country is still in the preliminary stage of exploration, evaluation system is not perfect, the reliability of the decisions is put to the test, and for of in the evaluation should attach importance to it. Also, much attention should be paid to transaction costs produced in the trading process during the evaluation process.From the perspective of the government, combined with the background of the PPP model, this article makes an overview of website construction of PPP model in China and abroad, especially research on transaction costs; emphasizes the necessity of research on the transaction cost of the PPP project. Detailed study was carried out by the following several aspects:1)It gives the definition, implementation and application of PPP model, firstly proposes that starting from the characteristics of project, give a preliminary suitability analysis. On the basis of the above analyses, o judge whether adopt the PPP mode or not, then go on the VFM(Value For Money)evaluation.2)It gives the definition and classification of transaction costs, deeply analyzes the transaction costs of PPP life-cycle and the specific reasons. And then points out some measures to reduce the transaction cost. It can’t ignore the existence of transaction costs, which is obviously exist, when carrying out the PPP project VFM evaluation.3) Combined with the internal and external studies on VFM evaluation methods, constructs a PSC index-centred quantitative evaluation system based on the transaction costs, and qualitative evaluation system. Ultimately, PPP project prophase decision-making mechanism was set up on basis of VFM.4)Based on the current application status of the PPP project, containing the lack of experience about the PPP project evaluation and the implementation, reliance on existing projects, try to establish the PPP project CBR(Case-Based Reasoning)decision support system, hoping to collect and improve the PPP case management by using the computer system. When making decision, query similar case solution to fix or improve the implementation plan through the PPP project CBR decision support system, which improves the reliability of decision-making.