| Public Private Partnership(PPP),which is an adaptive adjustment on the relation of production as the productivity progresses to a certain stage as well as a combination of advantages from the government and the market,has been energetically promoted in China.Ever since the reform and opening up,China's system of property rights has been developed,which has mobilized the initiative and extensive accumulation of social capital.However,the mode of capital expansion based on land finance has increased risks of local debts,which is harmful to social stability.The government leading social capital to invest in infrastructure construction and real economy will help to promote healthy economic growth.In the future,China will promote “The Belt and Road” initiatives internationally and continue to promote the urbanization and agricultural modernization domestically from which massive demands for infrastructure construction investments will be generated that cannot be realized by public finance alone.Various social capital can join through supply-side structural reform in the form of public private partnership.Limited public finance can be used to drive more investments of social capital so as to increase the supply quantity and efficiency for public goods.China is still in the initial stage of the application of PPP when various industries,led and driven by the government,are actively applying PPP for investment,and social capital is encouraged to join.With the development of social practice,research on applied theory of PPP has been accordingly carried out in mainly two directions,namely(1)the extension of project management from the pre-project investment and financing management to the management of whole project life cycle as well as(2)the deep application to industries.Research has been conducted in the above two directions simultaneously under mutual support.There exist problems in the promotion of PPP in China,including difficult project implementation,low signing rate,hesitating social capital,etc.,because of the access “thresholds” in China's existing management system.The “thresholds” mainly include lack of contract performance habit and credit,low cost of project breach,incomplete information disclosure,etc.,of the government.In most research,it is believed that the local government will violate a treaty due to subjective factors,so it is advocated to perfect laws for PPP and contract spirits.Supposing the local government has the contract spirit and is willing to implement a contract agreement in accordance with economic rationality,it is believed that the breach of contract by the local government has been affected by objective factors,that is,the local government is at a disadvantage in the contract negotiation in pre-project due to its inadequate experience in negotiation or asymmetrical information of project operation,because the conducting ways of contract negotiation for PPP projects are different from the administrative models for traditional government invested projects.When the contract goes against economic rationality after its implementation,the government chooses to violate the contract with a lower price under the need of loss reduction.Different from the management for traditional government invested projects,the rights,responsibilities and interests of each investor shall be clearly defined during the contract negotiation in the pre-project and shall be specifically reflected in the investment contract or agreement.In the paper,it is believed that investment cooperation of PPP projects shall be studied from the perspective of economics so as to further emancipate the productivity and fine tune the relation of production.Attention shall be paid to the management of investment contract or agreement of PPP projects,based on which the investment evaluation system and corresponding evaluation methodology shall be established thus to lower the access “thresholds”.To achieve successful partnership,a good partner has to be chosen for joint implementation of a good project,complemented by mutual agreement and constant negotiation.With the goal oriented at public private partnership cooperation,speeding up the “implementation” of contract signing,improving the success rate of projects and ensuring the project investment safety,the established system of evaluation methodology of PPP projects shall include the financial affordability verification and credit evaluation of “choosing a good partner”,value for money assessment and financial evaluation of “implementing a good project”.In the paper,it is proposed that the system of evaluation methodology of PPP projects shall consist of financial evaluation,value for money assessment,financial affordability verification and credit evaluation.Based on the general mode of financial evaluation for domestic investment projects,the mode of financial evaluation is amended and adjusted according to characteristics of PPP projects,with its focus on basic yield of projects,rate of return on investment for social investors,payback period,break-even point,shareholding structure,investment rate of investors,government subsidies and other evaluating indicators.As an international project decision-making tool,the value for money assessment,which can be divided into qualitative and quantitative evaluation,is carried out on project subjects to measure whether adopting PPP mode will achieve better efficiency than adopting traditional procurement model.As an investigation and assessment on the objective contract performance ability of the government,the financial affordability verification is conducted to measure the impact of project on local government's responsibility on fiscal expenditure,which helps to prevent debt risks.At present,the Ministry of Finance leads to issue Guidelines for Value for Money Assessment of PPP Projects(for trial)and Guidelines on Financial Affordability Verification,having regulated the assessment activities.However,“disagreement with local conditions” remains in China when foreign methods are introduced especially when the basic data in Chinese projects are imperfect and it's hard to quantify risks.The method accuracy has been greatly impugned in the practice where there remain many problems worthy to be discussed about.As an investigation and assessment on the subjective contract performance intention of the local government,the credit rating evaluation has taken a credit evaluation method of due diligence or cautious investigation as a reference,and it has been applied to the evaluation of PPP projects in order to establish the evaluation system of local financial credit rating.In the paper,literature review,theoretical research,empirical study,case study and other methods have been adopted,and international application experience of PPP project evaluation and agricultural infrastructure investment have been taken as reference to carry out research on application methods of PPP mode in China's agricultural infrastructure investment as well as discussions on contract management and project evaluation of PPP projects from the perspective of economics.In the paper,it is believed that investment in agricultural fixed assets has a significant influence on agricultural economic growth through quantitative analysis of latest yearly data.Based on the conclusion of historical experience and investment status of agricultural infrastructure construction in China,it is believed that China will continue to promote the new-type urbanization and agricultural modernization,drive the integration of urban and rural infrastructure and public services,accelerate the improvement of agricultural infrastructure and carry out a batch of major agricultural projects in the period of the “13th Five Year Plan”,which will cause pressure for the investment supply of agricultural infrastructure,so it is necessary to mobilize the initiative of social capital and relieve the fiscal expenditure pressure of the local government.The thesis has research on the deep application of PPP mode in China's agricultural infrastructure construction,refines the classification of infrastructure,and defines the scope of investment.Suggestions have been proposed for existing problems.In the paper,incentive contract theory of regulation economics has been applied to contract management of PPP projects.The incentive contract which suits public private partnership in infrastructure investment most has been discussed and analyzed when the incentive contract model has been established.In the paper,the existing financial evaluation model of investment projects has been amended and adjusted based on the characteristics of PPP projects,establishing the financial evaluation model for PPP project;The application of two evaluation methods,qualitative and quantitative value for money evaluations as well as financial affordability verification under discussion,has been concluded;It is proposed that exploration shall be carried out for credit rating evaluation,and attempts are made to construct the evaluation system of PPP projects through financial evaluation,value for money assessment,financial affordability and credit rating evaluation. |
PDF Full Text Request