The Study On Decision-making Mechanism Of Non-self Reimbursement PPP Projects Based On Value For Money (VFM)

With the continuing promotion of Chinese urbanization reform, the demand of public infrastructure project is growing and the problem of insufficient state funds becomes a bottleneck constraining our public utilities’further development. Given the advantages that PPP models can effectively alleviate the financial pressures, improving efficiency, the government actively encourages and advocated private investment in urban infrastructure construction and operation of the project. At the same time, along with the development of government procurement, the government is also actively promoting the concept of change in government procurement, more focusing on the value for money of the procurement. It is necessary to use PPP mode in the construction of infrastructures; Only appropriate projects can improve efficiency, achieving value for money by using PPP mode. Therefore, it is necessary to establish a scientific evaluation and decision system for judging the application of PPP mode in the construction of infrastructures.This paper summarizes the issues in the system of laws and policies, regulatory mechanisms, methods of evaluation, which develop in PPP project decision-making process by analyzing the current status of the development and application on PPP model in infrastructure construction in China. And then the specific practices of application of PPP in both developed and developing countries and regions abroad are analyzed; On this basis, the index system about PSC and the external benefit evaluation system for non-elf reimbursement PPP projects are build, based on the characteristics of the non-self reimbursement PPP projects; then the non-self reimbursement. PPP project decision-making mechanisms based VFM is established. suitable the eventual establishment of VFM non-self reimbursement.based PPP project decision-making mechanisms. Finally, the policy proposals on improving the implementation of PPP projects in China are referred, based on the current application status of PPP projects in China and on the advanced experience of other countries.