Study Of PPP's Application In Beijing's Rail Traffic Construction And Operation

In recent years, a new form of project financing, Public Private Partnership (PPP) emerges in the field of semi-business-operational infrastructure, which combines the strengths of administration, private investors and financial institutions. PPP not only reduces the pressure of public finance, but also brings relatively stable returns for private investors and financial institutions, so it is very rewarding theoretically and practically to accelerate PPP's study and application. This paper, having PPP's application in Beijing's rail traffic construction and operation, or PPP's domestic debut as a typical case, sets up two models, CAPM and Cash Flow Model, to price the project risks and conduct financial sensibility tests respectively, problems of risk management and return allocation in No.4 Line Subway Project also being discussed.