Cost-benefit Analysis Of PPP Financing Model For Urban Rail Transit Projects In Baotou City, Inner Mongolia

With the upsurge in the construction of urban rail transit in China gradually expanding from the first-tier cities to the second-and third-tier cities,the urban rail transit construction capital problem has become the main factor in the construction of urban rail transit projects in the second and third-tier cities.The PPP financing model has the advantages of low government investment quota,full use of social capital and the use of social capital efficiency,and has become the main form of financing for the construction of urban rail transit projects in China.However,the urban rail transit project under the PPP financing model is not without financial risks.In order to strictly control the financial risk of urban rail transit construction under the PPP financing model,it is necessary to analyze both the cost and the profit.This paper analyzes the cost-benefit problem of urban rail transit projects under the PPP financing mode by selecting the No.1 and No.2 subway lines in Baotou City,Inner Mongolia.Inner Mongolia Baotou City Metro Lines 1 and 2 are the first PPP urban rail transit projects that have been suspended after the start of construction.The construction cost is unreasonable,the local government is unable to bear the cost and the future earnings are not optimistic are the root causes limiting its continued construction.This paper analyzes the cost-benefit problem of urban rail transit projects under PPP mode by selecting the first and second lines of Baotou Metro as a specific case.After analysis,the overall capital cost and construction cost of Baotou Metro Lines 1 and 2 are high,and further combined with the estimation of operating costs during the franchise period,it is believed that the No.1 and No.2 lines of Baotou Metro will be in the construction and operation phases.Both have a certain funding gap.Among them,the local fiscal revenue of Baotou Municipal Government is low,which makes it impossible to provide sufficient financial subsidies for the construction of the project in the early stage and the operation of the project.At the same time,the single income model of the urban rail transit project also makes the construction of the subway project recover the construction and capital costs during the franchise period under the PPP model.In order to solve the funding gap in the construction and operation of Baotou Metro Lines 1 and 2 under the PPP mode,the actual situation of Baotou City will be based on the development of local economic strength,broadening the project capital form,introducing strategic investors and increasing commercial operations.The project and other aspects have given countermeasures and suggestions.In this paper,there are still some problems in the estimation model and the prediction methods of key indicators,and the improvement can be continued in the future.