Study On Urban Rail PPP Project Financing Strategy

With the rapid development of China's market economy and the acceleration of urbanization,the ensuing urban traffic problems have become increasingly prominent.In order to solve the daily traffic problems of residents,major cities vigorously develop urban rail transportation.However the construction and operation of rail traffic requires a lot of finance,material and manpower resource.The traditional government based financing model has failed meet the development of the city rail transit,so China is actively introducing foreign advanced PPP mode,to seek diversified financing channels.In order to reduce government expenditure,and improve the city rail transit investment and operational efficiency by utilizing the complementary advantages of private capital,private capital is encouraged to invest in urban rail transportations by cooperation with the government.Generally,the application of PPP financing mode for urban rail transit construction is still in the exploratory stage in China.With the complexity of PPP financing structure,participants structure,PPP project can be very risky.Therefore,it is necessary that PPP project financing mode in the construction of urban rail transit in the full range of research.Hopefully,PPP model can be successfully and effectively applicated in urban rail transit projects construction.Firstly,this paper describes the research background and content of the theory of related literature,as the theoretical basis of this thesis,based on which the research direction and aim was defined.Secondly,the situation and application status of PPP project financing in domestic urban rail transit is analyzed.It is also elaborated that how can urban rail transit,as a public infrastructure construction,introduce PPP financing model to solve financing problems.Along with the discussion the bidirectional effect of PPP mode,this section also classifies the types of domestic urban rail transit PPP project,as well as the existing problems.After that,by studying and summarizing of foreign PPP project experience,this paper concluded several enlightenment to our research.For real case study,the paper introduces Qingdao Metro Line 4 PPP project to analyzes the specific problems,like the operation mode,the stakeholder relationships,profit model,the profit distribution and the risk sharing mechanism.The bottlenecks of domestic urban rail transit PPP project are addressed,as well as the resolution experience of finacing mode innovation in Qingdao Metro Line 4 PPP project.Finally,based on the analysis of the financing situation of domestic urban rail transit PPP project and the understanding of domestic financing bottleneck,this paper puts forward some countermeasures to solve the financing bottleneck of PPP project in urban rail transit in China,including strengthening project feasibility study and evaluation analysis,establishing scientific management Mechanism and risk sharing mechanism,improve the responsibility distribution system,expanding the financing channels and innovating financing modes,establishing benefit sharing finance system,implementing effective supervision and management,constructing effective government approval procedures,increasing government subsidy and so on.Hopefully,this research can provide theoretical guidance and practical value for the domestic urban rail transit development.