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. PPP (Public-Private-Partnerships) has been popular in infrastructure field in recent years, and becomes an effective method to solve those problems, such as the public product limitation of government investment and shortage of finance capital.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.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 of PPP project are analysed. Some advices for government to promote the application of PPP in China are given. Risk allocation is crucial to the success PPP project. This paper is to access the risk factors involved in PPP implementing process from different perspectives such as government and private sector entities.