Investment And Financing Term Mismatch And Funds Balance Of PPP Project

Public-private Partnership(PPP)refers to a partnership or cooperation mode established by the public sector and the private sector to provide public goods or services.Since the state council issued document No.43 in October 2014 to rectify the local debt problem,the PPP model has become the best way to solve the social infrastructure investment.The duration of PPP projects is mostly 10 to 30 years,with a maximum of 50 years.However,the life cycle of its main debt financing tools,such as bank loans and corporate bonds,is only 5-10 years,which is obviously not matched with the long life cycle of PPP projects.Therefore,the term of financial instruments provided by social capital does not match the life term of PPP projects,and the PPP projects is faced with the realistic problem of the term mismatching of investment and financing.Based on the analysis of the status quo of the PPP project investment and financing period mismatch,based on the theories of matching and the period term mismatch,explain to assets and liabilities deadline and financing deadline that match the theoretical basis,from the PPP project to the deviation of the permanent business of franchising and structured to leverage policies with deviating from the two aspects of the business logic analyzes the formation mechanism of the PPP project deadline mismatch.Secondly,by sorting out the characteristics of PPP project financing tools and relevant policies of PPP project investment and financing in recent years,the realistic inevitability of PPP project investment and financing term mismatch is obtained.After that,through the construction of ordinary least square(OLS)model,multiple regression was carried out to analyze the main factors that promoted the maturity mismatch of PPP projects in’ the capital stage and the refinancing stage.Finally,according to the empirical results,a capital balance concept to alleviate the maturity mismatch of PPP project investment and financing is constructed,the debt financing of PPP project is adjusted by using perpetual debt,the equity financing is enriched by using capital securitization,and policy suggestions are put forward for the innovation of financial products of PPP project.The main conclusions are as follows:(1)The life cycle of PPP project is equal to the term of franchise,and the limitation of life cycle determines that the term mismatch of PPP project cannot be defined according to the traditional concept of sustainable management;(2)The term mismatch in the capital phase of PPP project is mainly because the social capital equity fund in the capital has the phenomenon of "small equity big debt "and "clear equity real debt",and the debt financing in the early stage of the project is all short-term financing,which leads to the increase of the future debt repayment pressure of PPP project,resulting in the term mismatch;(3)The term mismatch in the refinancing phase of PPP project is mainly because the life cycle of refinancing financial products is mainly short-term,which is not matched with the long life cycle of PPP project;(4)To alleviate the term mismatch of PPP projects,it is necessary to start from the limitation of the life cycle of PPP projects,redefine the capital balance,improve the innovation mechanism of financial instruments,and construct the capital balance concept of PPP projects.