The Project Conversion From BT Model To PPP Model

With the acceleration of country urbanization process,infrastructure construction should be constructed to meet the increasing requirement,therefor,the BT model became the main debt financing method which greatly increase the debt of local government.Since the year 2014,the PPP model that is more advantageous than the BT model,was suggested and implemented by the government.Some BT projects that were unfit for the national policy or have financial failure problems that were hard to carry on were suggested to convert to PPP projects.This paper focuses on the study of how to convert a BT project under construction to PPP model.First of all,this paper introduces the background and significance of the research,the domestic and foreign research summary,the content and the technical line.Then,this paper divides the conversion into three kinds through the analysis of the relevant policies of both models,elaborates the theoretical basis of the conversion.Elucidates the advantages and emphases of both models through quantitative analysis.Also,this paper tries to elaborate the significance of the implementation of the PPP model.At last,this paper analyses the feasibility of the conversion to the PPP model,the economic benefit of the conversion is also carried out.It puts forward two ways of conversion: clearing,terminating the original contract and retender,and direct conversion method.Theoretically analysing the scheme of direct conversion,while elaborates the practical conversion scheme of S road project.Summarizes the mistakes and deficiencies in the process of conversion.For the lack of legal operation mechanism,together with the large number of participants and the complicated relationships involved,risks are always accompanied by local government investment projects.As a new thing in China,PPP model was widely used to alleviate financing problems and high debt of local government in infrastructure construction,therefore,speeding up the development of laws and regulations is the right way to promote the PPP industry.