The Critical Path Analysis Of Public Culture Program That Employs PPP Model

Under the background of new normal economy,the financial revenue of local government will certainly be affected.Financial revenue turns to have a big loss,however financial expenditure attends to be more and more.Thus,the financial burden is getting worse.We can see from the huge debt ratio of some local governments.In another way,if the government won’t pay for the city,the whole area won’t develop in a good way too.Also,this common condition will influence the life quality of our people.In the meantime,the government should use PPP model to attract private capital.PPP is short for Public-Private-Partnership.Private capital will invest with money and professional techniques,local government will provide the platform and rare political resources.Thus,private capital will help local government to improve the development of local area.Public culture program tends have the users to pay,such as theaters and scenic spots,we users usually have to pay for the service.In this way,private capital can earn profit from the program.It’s also the new way to develop PPP program.But these programs lack of support from the law and policy,the need of users and earnings aren’t stable,and there is a little successful experience from now on.These difficulties all hinder public culture program to employ PPP model.Based on the analysis of related theory and public culture program experience form both domestic and overseas,we can find that public culture program is fond of strong public welfare.Local government has to pay attention to the culture needs of people.This is sure their duty.Also,public culture program has non-functionality.It’s quite different from the usual PPP program.The usual PPP program including highway,sewage treatment plant,water works,power plant and so on.These are the basic needs of the area.In order to develop the public culture,we need to assure the infrastructure around is good to use,and this means public culture program covers the infrastructure construction.Hence,this article summarized some characteristics,such as the market need isn’t stable,high invest risk,long life cycle,strong culture technicality.Both government and private agency must analysis the critical path based on the characteristics to ensure the program can go well.This article is based on the case of Hanzhong XX Chinese Culture Construction Program,it lists the important points in employing the PPP model of whole life cycle,which covers the decide and design phase,the financing and chose private capital phase,the construction,operation and deliver phase.We must focus on how to decide which point is important,on each point,we should choose which method to keep the program develop sustainably,let both local government and private agency earn considerable profits.In the phase of decide and design.Fist is to analysis the feasibility of the program,make sure the program is worth to progress.Then it’s important to evaluate the financial endurance of the local government,ensure that the government can handle the program.On the side of the program,every cost and probable revenue should be estimated.Of course,all kind of risks should be measured in a decent way.In the phase of financing and chose right private capital,we should decide based on the company’s qualification,financial situation and former experience.Public culture program has strong culture technicality,thus the former experience will be priority.It’s appropriate that chose either government paying or users paying and which way to employ PPP:BOO,BOT or EPC should consider the characteristics of the program.For example,some part of the program is pure public welfare,this may use government paying.Some part of the program including performance center and the private agency must run for 20 or 30 years to earn profit,this may use BOT model.In the phase of construction,operation and deliver,it’s necessary to supervise the construction cost,sustainable operation capacity.We need to assure the facility is maintained properly and the private agency has a fine way to exit the program.Though,Hanzhong XX Chinese Culture Construction Program has some creative work methods during the whole life cycle,it also truly has much to progress.Such as the private agency may have wrong thoughts about the public need,local government offer the subsidy annually without performance assessment and the government intervene is too much and so on.To sum up,Hanzhong XX Chinese Culture Construction Program is a great example of employing PPP model.The program pays meticulous attention to each phase and point though the program’s whole life cycle,uses creative methods and bring in third-party regular,similar program can sure learn from it.Deeply,we can also express the program’s information disclosure problem,to build a well environment of develop PPP program.