Research On Evaluation Method And Decision-making Of PPP Project

With the development of the investment system reform, investor in China has been expanded from government and State-owned enterprise to including private and overseas sectors. In the field of the public project construction, PPP (Public Private Partnership) and other new types of investment mode have been used more and more widely. This tendency gives importance and profundity to PPP project evaluation and decision-making both in theory and practice.At the beginning, the paper expounds the PPP concept and theoretic origins of public investment evaluation, including macroeconomics, welfare economics and developing economics. Then it analyzes four features of PPP: having various objects according to the variety of investors, charging through various ways, having concession period and distributing risks more reasonably. Then it designs the contents of the economic evaluation of PPP projects and establishes a relatively comprehensive evaluation system. After discussing the identification of the cost and benefit, the paper then puts forwards a two-step method: primary feasibility evaluation and PPP applicability evaluation. A practical case is given to prove the reasonability and feasibility of this evaluation method. Furthermore, the paper analyzes the investment proportion between the public and private sector, and studies the financial profit distribution between investors and the economic benefit distribution between different social parties.Finally, the paper discusses government decision-making and designs a standard process for PPP projects. Furthermore, it also studies the regulation system and approval system in the project construction practice, and gives several suggestions to the PPP project decision-making in China.