Research On The Application Of PPP Project Based On Value For Money

Along with the new urbanization developing rapedly,financial investment in china has not been able to meet the growing demands of efficiency in infrastructure and service for public.In this context,the PPP model is widely used in China,by taking the advantages of higher economic efficiency,better time efficiency and increasing of investment and financing and improving public facilities services.To Evaluate the feasibility of a PublicPrivate Partnership project,it is required to provide a qualitative and quantifiable basis and principle of the value-for-money.However,the application of VFM emphasizes on qualitative evaluation,whose index and weight are controversial.In addition,quantitative evaluation has not been applied effectively in practice.Based on the life-cycle perspective of PPP project,this study attempts to solve five difficulties in the application of VFM on the basis of the analysis,so as to improve the application of VFM in PPP project.Therefore,this study is carried out by the following aspects:(1)Combining with the background of PPP model,this paper confirms the research content and ideas,which summarizes the current situation of VFM and evaluation of PPP projects at home and abroad from the literature review.(2)It expounds the theory and methods of project evaluation and the Shapley method for the distribution of benefit.In particular,it analyzes the four main methods of the valuefor-money theory deeply.Then,the experience of applying VFM in 6 countries and Hong Kong inspires the application of current VFM in china profoundly.(3)The qualitative evaluation index system has been redesigned,by utilizing the uncertainty type of AHP to determine the weight,which is the innovation of this article and has been verified in the case study.(4)The application phase of the Quantitative evaluation is extended to the project life cycle,and puts forward the choice of discount rate strategy.Next,this article refines the cost of PSC and PPP and analyzes its data sources.Afterwards,the scenario analysis is combined with the probability method to quantify the cost of risk.Finally,it builds Shapley value correction model to quantify the distribution of benefits.(5)The pilot construction project of sponge city is analyzed as a case study.From the perspective of qualitative evaluation and the quantitative evaluation,the experimental results verify that the research is workable in China.The conclusion of this paper has a certain theoretical and practical values,which contributes to promoting the application of VFM in the PPP project evaluation.