Schematic Design Of PPP Project Of Xi'an Metro Line 8

The PPP(Public-Private-Partnership)method is a cooperation between government and social capital to provide public goods or services.It is widely used due to the reduction in government's financial pressure and the improvement of public goods and services supply.Urban rail transit has the characteristics of quasi-public goods,huge positive externality,scale economy and strong monopoly.With the continuous development of urban rail transit,local governments are generally faced with huge financial needs which are difficult to meet.Based on this problem,this paper takes the Metro Line 8 to study the application of PPP method in the urban rail transit field,witch with the largest financing scale in the third round of the Xi'an Metro project.Based on a large number of relevant literature,this paper makes a clear definition of PPP,demonstrates the economic characteristics of urban rail transit,and systematically analyzes the applicability of PPP method in the China's rail transit.Additionally,the author investigates the Metro Company as the research object,investigating the Xi'an Metro Company Limited,Xi'an Development and Reform Commission,Xi'an Finance Office and other government departments.Based on the company's development planning,financing needs and existing financing methods,this paper provides a specific PPP project for Xi'an Metro Line 8.This paper makes a detailed analysis of the main participants involved in the operation of the PPP project,the methods of project financing and investment,the operation process,as well as some core processes such as the selection of social investors,the subsidy mechanism,the contract system,the risk distribution and financing plan during the operation of the project.Further,this paper also suggests a series of supporting measures to ensure the smooth implementation of PPP projects,including the government function transformation,establishing reasonable mechanism of pricing public goods and sharing the risks,and increasing professional people with knowledge of PPP.This paper concentrates on the specific construction area of the subway,and the design can solve the financing difficulties faced by Xi'an Metro Corporation.The design is also valuable for other cities to adopt PPP method.