The Research On The Application Of PPP In China's Infrastructure Projects

The importance of the infrastructures has been recognized for the all countries in whole world. For most of the post-war period, government has been the principal provider of infrastructure. Over the last decade, that position has begun to change. Faced with pressure to reduce public sector debt and, at the same time, expand and improve public facilities, government have looked to private sector finance, and have invited private sector entities to enter into long-term contractual agreements which may take the form of construction or management of public sector infrastructure facilities by the private sector entity, or the provision of service(using infrastructure facilities)by the private sector entity to the community on behalf of a public sector body.PPP is an approach of project financing in public infrastructure. Under this approach, private sector is encouraged to cooperate with government to take part in the building and the provision of service of public infrastructure. Compared to conventionally financed procurement,the PPP approach has brought both benefits and costs.With the quick development of China, the current infrastructures can't satisfy the request of the national economy development. PPP is a good approach for China to develop infrastructure.In this paper, the background, concept, the underlying principles and advantages of PPP are introduced. Based on China's situation, this paper sets out themes which apply to all the various forms of PPP in China. And the financing, structure, procedure, risk management of PPP project are analysed. At last,some advices for government to promote the application of PPP in China are given.