Exploration On The Bankability Of PPP Projects Enabled By Blockchain Technology

On September 7th,2019,"Public Private Partnership(PPP)Annual Meeting" was held in Shanghai.Ding Huamei,President of Tianjin Financial Assets Exchange,proposed that PPP project should have the characteristics of financing ability,tradability and sustainability.So improving the financing ability of PPP project is important.At present,the regulatory environment of Chinese PPP projects is tightened.The rectification and inventory clearing work will be promoted for a long time.On the one hand,the credit problems of PPP projects in China,such as large capital demand,insufficient expected return on investment,and the credit risk problems among the main bodies,all lead to high default risk and credit cost;on the other hand,China's finance and state-owned assets and other departments have issued a number of PPP financing supervision policies since 2017.Meanwhile,the traditional financing channels are limited,which may affect the investment enthusiasm of social capital.At the same time,the imperfect exit channels and limited access of financial institutions also restrict the realization of PPP project financing ability.Therefore,how to overcome the problem of PPP financing and improve the financing ability of PPP projects,and then standardize the PPP market,have become the key of current scholars' research.This paper firstly analyzes the factors that restrict the financing ability of PPP projects,which include: trust risk between government and the social capital,insufficient credit of social capital subjects,limited participation right of financial institutions,limited traditional financing channels,imperfect exit mechanism,insufficient project credit and so on.Furtherly,with the help of embeddedness analysis,the paper combs out the factors for high degree of embeddedness with blockchain technology.By virtue of the comparative advantages of blockchain technology,the potential path of enabling PPP project financing ability with blockchain technology is explored.That is,by building a multi-centralized integrated trading platform,an intelligent contract system,an intelligent bond system,a payment and clearing system,and a settlement system are constructed on it.Finally,in order to strengthen the platform construction,supporting suggestions are put forward,and an effective optimization scheme for PPP financing ability are jointly sought,so as to promote the healthy development of PPP financing in China.This paper makes full use of the technical advantages of blockchain to carry out the relevant scenario design,elaborates the breakthrough of blockchain technology on the lack of financing ability of PPP projects,and provides the operational ideas for the implementation of financing in China's PPP market and the improvement of project landing rate.However,due to the shortcomings of the development of blockchain technology itself and the limitations of research on the application of blockchain technology in improving the financing ability of PPP projects,the research of following-up scholars can continue to deepen with the improvement of blockchain technology and its application scenarios.