A Study On Financial Capacity Argument Under The PPP Mode

In the last few years,with the progress of Chinese society and the sustained and rapid economic development,the living standard of the people has been continuously improved.The limited financial power of the local government has lagged behind the expectation of the infrastructure construction of the society,and it is difficult to meet the increasing demand of the public on the supply of high quality products or services.Therefore,actively guiding social capital to participate in the construction and rationally utilizing the PPP mode can solve this contradiction between supply and demand.Implementing the PPP project needs a lot of preliminary works such as project launching,screening,value evaluation,financial capacity demonstration,implementation plan compilation,auditing,prequalification of project procurement,procurement documentation preparation,etc.Although all the countries that have PPP projects will take the necessary fiscal constraints to control the financial risks brought by the PPP project,the proof of fiscal affordability is a unique link to prevent and control fiscal risks for China's national conditions and the current development of PPP.A comprehensive study of the financial affordability of the PPP project and ensuring that the project is carried out within the controllable financial capacity of the local government is one of the keys to the success of the PPP model.This link is still in its infancy at present.This paper uses literature research method and summarizes the PPP model of financial capacity argument related theory and concept,study the role of fiscal capacity argument in the PPP implementation of the project,and introduces the general process of financial capacity argument,and then based on the theory of the use of case analysis,quantitative and qualitative analysis and other research methods study on Lake Avenue East Line Project in J City,will finance specific link capacity argument process application analysis in specific cases.And practice J PPP work and financial capacity of the actual operation in the process of argumentation,in interviews with J PPP,a participant in the project,such as the finance department and the Department in charge of industry and the third party consultation mechanism for the exchange,from the participants and the director's perspective of cognition of local government initiatives in PPP mode under the.J in the PPP project financial capacity argument,there are some innovative ideas and methods of work is worth learning,but there still exist many problems in the financial capacity that needs to improve,these issues are not only in the city of J,but the common problems.This paper also puts forward some problems in the demonstration of financial affordability,including the demonstration formula and the standard of proof,the self-discipline and supervision of consulting institutions,and the talent mechanism.In order to further improve the ability of fiscal affordability and make the role of this process better play,finally,based on the application of J city's fiscal affordability demonstration,combined with other cities' practice in China,we draw lessons from the advanced practices of other countries,and put forward corresponding policy recommendations.I hope that through this article,first,we can explain and popularize the demonstration of PPP mode and the theory of fiscal bearing capacity.Two,I hope to provide effective reference for J City,other prefecture level cities and even the whole country from the perspective of practical operation.