Research On Financing Methods Of PPP Project In China

In recent years,especially since 2014,the NDRC and the Ministry of Finance have issued a series of guidances on PPPs in succession,giving support and guidances to the promotion of PPPs at the policy level and in actual operation respectively,thus setting off a wave of China PPP craze.The widespread adoption of the PPP model in China is yet another change in China's financing mechanism.However,for PPP projects,besides the self-owned funds provided by the government and social capital,there is still a large funding gap.Financing difficulties remain a major obstacle to advancing PPP projects.In the field of academic research,more and more PPPs have become the focus of academics.They mainly study PPP from the perspectives of PPP model definition,risk management and PPP project financing structure,but lack the systemsly research for financing methods of PPP projects Based on the previous studies and related theories.SO,this paper combines the current situation of PPP project distribution,the return mechanism,the operation mode and the characteristics of financing,analyzes several financing modes that can be used in PPP projects:PPP industry funds,bank loans,Bond financing,asset securitization,policy and financial instruments were introduced in detail and systematically,and also their respective advantages,disadvantages and applicability were compared and analyzed.At the same time,through the analysis of the financing mode of PPP project of Liyang Creek Integrated Renovation Project in Lishui City of Zhejiang Province and the asset securitization analysis of PPP Project of Xingye Ring Road(Donghuan Section)in Anshan City,several financing modes are introduced in these two actual PPP projects Through case analysis,we can vividly illustrate the choice and application of financing methods in specific PPP projects.Finally,we put forward suggestions and countermeasures to improve the choice of financing methods.The research in this paper provides a new idea for related research.At the same time,it provides theoretical guidance for PPP projects to select financing methods rationally,reduce financing costs,solve the financing difficulties of PPP projects and promote the effective operation of PPP projects.