Quantitative Evaluation Of Value For Money In PPP Project

The PPP model is essentially a long-term financing contractual relationship and a cooperation mode between the government and social capital.This model introduces the advantages of both parties(government and social capital)and improves the quality and efficiency of public goods and services through introducing social capital into infrastructure construction and introducing market competition and incentive and restraint mechanisms.The core of the PPP model is the introduction of market mechanisms in the field of public services.The use of PPP mode for the construction and operation of infrastructure can moderately introduce market competition into the field of infrastructure and reduce the government’s debt pressure.While realizing social welfare and improving the quality of infrastructure services,it can also bring the enterprises certain investment returns,and can broaden the investment channels for social capital and optimize the allocation of social capital.Therefore,it is not merely a financing method,but also a mechanism and system design.Through the natural link between asset valuation and PPP model,this paper analyzes the value-for-money problem of using the PPP model with the method of assessment,and combines two different applications to broaden the consulting business of asset valuation and also provide the government and the social capital fair,just and open value advisory services.As the first requirement for a project adopting the PPP model,the value for money assessing is divided into qualitative and quantitative assessments.Based on the reason that the qualitative assessment has a large subjectivity,this paper starts with the quantitative analysis and introduces the quantitative evaluation of the value for money in the PPP model.The quantitative evaluation process involves two main cost calculations.One is the cost that the government needs to pay under the traditional government procurement model,that is,the PSC value;the other is the cost that the government needs to pay for the entire life cycle of the project when the PPP model is adopted.Net present value,the PPP value.Then by comparing the size of the two,the value-for-money and the index of the PPP project under the quantitative assessment method are obtained.Finally,this paper will through a case to illustrate the Quantitative Evaluation of Value for Money of the specific value assessment process.