Comparative Case Analysis Of PPP Model

In recent years, with the development of economy, the construction of public infrastructure in China has made great achievements. However, along with the increase of the number of infrastructure, bridges collapsed, highway engineering quality accident, misappropriation of funds for infrastructure projects and corruption in the construction of the project are constantly pouring out. These programs have to make us think about what the supply mode can make the public service products of our country more efficient, make the whole social resources get better use.BOT mode and PPP mode are both a kind of project financing mode of public infrastructure, and both encourage social capital to cooperate with the government. Compared with the BOT mode, the main feature of PPP is that the government has a stake in the item company. Government and social capital are both shareholders. Government and social investors are full participation in the project construction operations. The cooperation between the two sides is longer,and the information is more symmetrical.In this paper, we use the core theory of incomplete contract theory, the distribution of residual control rights to establish the basic theoretical model. We construct a maximum total revenue(social benefit and project benefit) function of the government based on the rational return of social capital. Thus we derive optimal equity ratio formula of the relationship between social capital and government in the construction of infrastructure projects(The equity is mainly reflected in the project construction and operation of the major changes in decision-making, the project’s income and risk control, which is the remaining control of the project). Three kinds of possible equity ratio situations are derived from the optimal equity ratio formula. Combined with the characteristics of PPP and BOT mode, we find the corresponding equity situation mode for the three possible equity ratio situations.And then combined with the actual case analysis, through four different cases, and the theoretical derivation of the equity ratio discriminant, analysis of the reasons for the existence of various cases in the past or the mode should be applied. For example, analysis of the low income Shanghai highway network project, why in the past by the BOT mode, and not the PPP mode; Inner Mongolia Xinhui to tiger mountain highway project and outside the city of Anqing ring road project are also low income of the project itself, why in the current environment are no longer suitable for using BOT mode; Hangzhou Metro Line No. 5 items of income is relatively good, why does it have to use PPP mode, and the government is not alone dry. Through theoretical analysis and practical case analysis, combined with the current policy and economic background, the conclusion is that the PPP model is more suitable than the BOT model in the current environment.The ultimate goal of this paper is to provide a theoretical perspective and practical guidance for the main participants in the PPP project, and play an important role in promoting the effective implementation of the PPP project.