| With the development of China,China’s urbanization process has been accelerating very quickly.The urbanization rate has almost exceeded 60% by 2019,and it is very close to the target of 70% by 2050.However,the rapid development of urbanization has also affected the living standard of urban residents.The large-scale infrastructure construction of cities,especially the rail transit project to strengthen inter-city communication,is in urgent need of planning and improvement.However,due to the huge investment and long construction period of such projects,it often bring heavy financial pressure to the local government.If the government use the traditional model of bidding and building rail lines,it will not only put lots of pressure on local finances,but also limit the possibility of the government spending on other public facilities.So,PPP financing model was born.After many practices in China,the national development and reform commission and the ministry of finance promoted the PPP model.In 2014,a wave of application of PPP mode was set off in China.Many projects in infrastructure construction and social public utilities in China have started to using this model,which is called "government-enterprise cooperation".This model revolves around the two sides of the government and the enterprise.In the project,a win-win situation of "whole-cycle cooperation,risk sharing and benefit sharing" is well formed.This paper starts from the basic concept of PPP financing model and the development status at home and abroad,and analyzes the specific case of Y intercity railway,and finally draws a conclusion and enlightenment.The main contents of the case are as follows:Firstly,this paper introduces the basic theory and development status of PPP financing mode,expounds the concept,applicable theory and applicable industry scope of China’s current PPP financing mode,and lists and analyzes seven financing channels that can be adopted under China’s current PPP financing mode.Then,taking Y intercity railway as a specific case,the financing structure and financing sources of this case are analyzed,and the feasibility,necessity and accounting issues involved in adopting PPP financing mode in this case are elaborated.After that,the operation mode of Y intercity railway project is analyzed,and the correctness and rationality of adopting PPP financing mode for Y intercity railway are illustrated through value-for-money demonstration,economic benefit analysis,financial bearing capacity,etc.At the same time,it also analyzes the problems faced by the case in the financing process,and then lists all kinds of risks that may be encountered in the implementation of the project,and puts forward relative countermeasures and Suggestions.Finally,this paper summarizes the reasons for the rapid and successful implementation of Y intercity railway,which are as follows: the project itself has advantages,the bidding process is open and transparent,the local government has sufficient financial support,the social capital side is strong,and the debt loan for investment is mainly syndicated loan.The above success factors can be used as references for similar transportation rail projects in the future.In the end,from the perspective of Y intercity railway,this paper puts forward Suggestions and Suggestions on China’s future rail transit construction: Firstly,in view of the low participation of private enterprises in China,we should reasonably stimulate the participation enthusiasm of social capital parties,guide qualified and experienced private enterprises to join in,and expand the project return mechanism and improve the participation enthusiasm from the perspective of project income.Secondly,for the social parties that have participated in the project,they should broaden financing channels,"put their eggs in different baskets",and diversify financing to reasonably reduce risks.In addition,it is also important to improve the entry and exit mechanism of projects and promote the steady progress of projects.The establishment of this mechanism can solve the worries of social capital parties and enable them to participate more confidently. |
