Research On PPP Project Financing Leading By Central Enterprises

Since the Third Plenary Session of the 18th CPC Central Committee,the state has vigorously promoted the PPP model.It can be foreseen that the PPP model will occupy an important position in the provision of public services and infrastructure construction by local governments for a long time to come.At present,the financing responsibility of the PPP model is more transferred to the winning social capital party,and the parties involved in the project will not provide too many financing and credit enhancement measures for their risk isolation,thereby reducing the efficiency of project financing.To put it simply,the government cannot provide financing guarantees and other credit enhancements based on the consideration of debt reduction and policy constraints.The social capital side will also reduce the provision of credit guarantees for the sake of risk isolation,which will have a great impact on the internal loan approval of financial institutions.At the same time,the project is fiercely competitive and cannot give social capital an excessive return.Therefore,the winning rate is lower than the financing rate,and the PPP project has a long term,which has created a high thresholdfor PPP project financing,which has led to further restrictions on financing channels.The failure to implement PPP project financing has a great negative impact on the construction of the project.As far as the current situation is concerned,the financing of the project after winning the bid has become a severe test for social capital.The infrastructure central enterprises are the mainstay of the winning social capital.The scale and quantity of the winning PPP projects are relatively large and the financing constraints are more complicated.If the PPP project financing led by the infrastructure-based enterprises that account for the important share of the PPP market cannot be solved,the whole PPP market will be bad impacted,so it is more urgent to study the financing of PPP projects led by infrastructure-based enterprises.This paper mainly uses literature research method,comparative research method,case analysis method and other research methods.Firstly,this paper sorts out the research theories,main models,financing support and market environment of PPP project financing at home and abroad,and then systematically analyze the financing status such as scale,channel,cost,and repayment sources,analyze thefinancing problems and constraints such as financing costs are limited,financing channels are limited,project capital is insufficient,financing risk assessment system is lacking Then,analyzing the four financing modes of the current PPP projectcombined with PPP project financing case leading by infrastructure central enterprises,and discuss the diversified design and selection of financing plans,potential problems of financing solutions,countermeasures,and post-evaluation.Hope to be able to find a PPP project financing model that is more in line with infrastructure central enterprises and promote infrastructureconstruction under the background of strict PPP regulatory policies and increasingly standardized PPP market environment.Let the PPP model better playits advantages and better serve the infrastructure construction.Finally,this paper proposes to strengthen the expected management of capital costs,complement the capital pool of innovative projects,broaden the exit channels for project financing,improve the construction of risk assessment systems,and strengthen the legalization of projects.There are two main innovations in this paper.One is the innovation of perspective.The infrastructure central enterprises occupy an important share in the rapidly developing PPP market.The smooth landing of project financing has an important impact on the healthy development of the PPP market.Up to now,the author has not yet collected special research literature on PPP project financing which is dominated by central enterprises.This article draws on PPP references at home and abroad,selects the PPP project financing perspective led by China's infrastructure central enterprises to systematically analyze and,to a certain extent,make up research vacanciesfor the PPP project financing led by the current infrastructure.;the second is the innovation of ideas.As a practical participant in the financing of PPP projects led by infrastructure-based enterprises,the author has a deeper understanding of the financing of PPP projects led by infrastructure-based enterprises,and is sensitive to changes in markets and policies and regulations.Combined with the analysis of the financing of PPP projects led by selected infrastructure-based enterprises,this paper puts forward some optimizing viewpoints on financing dilemma caused by improper research and analysis of financing cost,financing dilemma caused by capital contribution and financial consolidation,financing dilemma caused by restricted exit of financing channels,financing dilemma caused by lack of overall control of financing risk,financing dilemma caused by legitimate compliance constraint,etc.