Case Analysis Of JSWY Private Equity Investment Getting Involved With Project PPP

The relevant departments of the state issued a number of legal documents in the past two years,made it clear that the local government platform can not fulfill the financing functions,any organization shall not replace the government in any form to raise social funds,resulting in the issue of creditor's rights and other issues not bear the government.At the same time,the issuance of local government project income debt is still in the exploratory stage,there is no mature operation ideas.In this context,the use of PPP private equity fund financing to a certain extent,to solve the problem of urban construction funding shortage.PPP private equity investment funds are also more in line with the characteristics of urban infrastructure,such as long cycle,income is not high and so on.In addition,the use of PPP private equity funds to raise funds and broaden the investor's investment channels,can make full use of social decentralized funds in the time and scale of fund raising also has considerable flexibility to help achieve capital raising and project construction Operational needs of the seamless convergence.In practice,many local governments will first invest part of the start-up capital,and then with the relevant financial institutions to set up industrial investment funds,the introduction of social capital participation.The main mode of operation is by the financial institutions and local governments to co-operate with the establishment of a guide fund,and local enterprises together to set up a project company or sub-fund,responsible for investment in infrastructure projects.The priority funds of the financial institutions are generally used in the form of phased recruiting or direct investment in the form of bank financial funds,sub-funds and project companies as the main project of the city infrastructure construction market operation,at their own risk and self-financing.This paper is to discuss the situation that more and more cities have now using the PPP method as foundational urban construction base on a theoretical analyzation,and also discuss the content and features of private equity investment getting involve with the PPP project,along with the case study of renovation of G320 road in Yiyang city to analyze the operation method,risk control and exit method of JSWY private equity investment involving with the PPP project.And to identify problems in designing and operation through actual fact,and to provide a theoretical foundation for the PPP private equity investment in present days.