Case Analysis Of Chengdu Urban Rail Transit Project PPP Financing Mode

Forty years of reform and opening up,China’s economic output ranks second in the world.With the continuous growth of the economy,the process of urbanization in China is also advancing.However,due to the increasingly crowded urban roads caused by the increasingly dense population,the demand for urban rail transit construction in China is increasing.The amount of investment in urban rail transit projects,especially in metro projects,is relatively large.Since China’s economy entered the new normal,the year-on-year growth of public finance revenue from 2014 to 2017 was 8.6%,5.8%,4.5%,and 7.4%,respectively,and remained low at all times,coupled with the pressure of local government debt,the government-dominated investment model in the past has obviously failed to match the rapid development of urban rail transit construction.Open up new accesses to achieve financing,so as to solve a series of problems such as insufficient funds for urban rail transit construction.The PPP investment and financing model,which is a construction model that can widely absorb social investor funds,has gradually become active in the construction of urban rail transit projects.It operates in a marketization atmosphere,which not only reduces local government’s investment in the construction of urban rail transit projects,it can also benefit from the professional capabilities of social investors,improve the quality of urban rail transit projects,and further improve the project’s capital utilization.On March 7,2017,the Chengdu Municipal Construction Committee and the successful bidder Power Construction Corporation of China formally signed the Agreement on Public-Private-Partnership Cooperation of the Chengdu Rail Transit Line 18 PPP Project,marking the first PPP mode in Chengdu.The construction of the metro project-Chengdu Metro Line 18 project officially landed.Chengdu isactively transfer the traditional single-government investment to the Diversification and marketization of financing channels.The introduction of social capital to jointly promote the urban rail transit construction PPP project financing model has become an effective solution to Chengdu’s urban rail transit construction.Through reading numerous domestic and foreign documents,this article first elaborates the basic theory of PPP financing mode of urban rail transit,and analyzes the specific application modes of PPP based on Beijing and London’s two cases.This paper summarizes lessons and implications for the application of the PPP financing model for the Chengdu Urban Rail Transit project.At the same time,it analyzed the multiple documents issued by the central ministries and commissions at the end of 17 th year to standardize PPP fields,and summarized the impact on PPP projects in the urban rail transit field.Finally,taking Chengdu Metro Line 18 as an example,it discussed and studied the key issues in the implementation of PPP financing for Line 18,and in consideration of economic characteristics and investment and financing characteristics of urban rail transit projects,proposing two suitable PPP financing models for Metro Line 18.Finally,through the analysis of Chengdu’s macroeconomic development status and the situation of local government finances and debts,we choose a feasible PPP investment and financing model,and provide some useful suggestions for the future use of PPP financing model for urban rail transit construction in Chengdu.