Public Private Partaership (PPP) Model And The Development And Study Of Our Urban Public Utilities

China's urban public utilities have been under the government's management and control for a long time, and the managing and operating system is state-owned management system. This system ensures that those state-owned companys can gain the government subsidy, and on the other hand, they monopolize the resources and markets. However, this system results in the government's heavy burden, state-owned companys' inefficiency, bad service and public dissatisfication. In the west, the reform in this field has been rising quietly since 1970s, basing on the theory that public sectors and private companys cooperate together to give full play to their own superiority, which is called public-private partnerships (PPP) , however the theory in China is just at its beginning.The main idea of the prevalent model is to make good use of the public sectors' and the private companys' superiority, they cooperate together, which forms a totally new institution management, and is called public-private partnerships (PPP) . The article concluded a PPP model that is suitable for our country's special situation. At last, we provided pieces of advice of urban public utilities privatization.The present paper mainly discussed several points such as the political and economic environments in China for PPP practice, the participants of the mdel (government, public sectors, SPC, private company or citizens) and the risks. It also analyzed the gaming relationships such as that between management and seeking renting, renting seeking and supervision. It pointed out the main exiting conflicts, problems, difficulties and how to conquer these problems.As to the core question of the model namely the price control of the urban public utilities, the present paper compared the Japanese economist's idea with China economist Wang Junhao's on the targets of the price control, and proclaimed that the price control aim in China is to improve the efficiency of social distribution and enterprises' producing efficiency, to promote the resource allocation reasonably and to maintain the enterprises' development potential. It concluded that PPP model would not have vitality, until interests of every sides was optimizated. In order to decide what kind of price control model is suitable for China, we systemically discussed the direct and the indirect price control model. By comparing 4 kinds of different direct control models with 2 indirect control models, according to our experience, we concluded that the ceiling price of indirect price control is suitable for the price control model in China in future.The present study adopted the case study on the forth subway of Beijing. By analyzing the whole managing process of the project, including overview of the project, determination of PPP proportion, select of the cooperator, project negotiation and signing the contract. At last it analyzed the main points and nodus of the negotiation, and concluded 4 successful experiences. Basing on the case study result, we suggested a set of PPP procedure that is in line with national situation.By combining the theory with experience, the qualitative methods with the quantitative methods, the theoretical model with the case study . the concrete with the abstraction and international situation with national situation, basing on the results of general investigation, research and case study, we proviede a set of PPP model and strategy suggestion that is suitable for our country.