A Study On Government Management Mechanism Of Private Finance Initiate Project

As the fast development of the economy and society of China, people's need for public products and service is becoming more and more intense. The extending scope of public projects investment has brought great fiscal pressure to the government. PFI is one of the efficient ways to solve this problem. By utilizing the private capital and its innovation, PFI is able to broaden the scope of the capital and technology source, to provide public products of better quality and lower price, to help mitigate the government's fiscal pressure and finally to make an effective allocation of the social resource. But because of the externality of most PFI projects, lack of government administration can always lead to monopoly and low efficiency. So the management of the government is one of the most significant factors for the success of PFI projects.This thesis deeply discusses the management mechanism of the PFI projects from a view of government. By wholly analyzing the theory of public products production, the main aims of government management in PFI projects have been determined. By analyzing the government management mechanism of PFI projects, government's role and focus of management have been confirmed. By wholly analyzing the Standardization of PFI Contracts made by HM Treasure UK, a good example and criterion have been provided for China. On the key factors of PFI projects, this thesis put the emphasis on the government's management mechanism as an administration supervisor and one part of the contract. A research on the stimulus mechanism, supervising mechanism, and other mechanisms of PFI projects has been made to help PFI projects become more normalized, more efficient, and healthier. This thesis makes a research on the knowledge of the government management mechanism of PFI projects form both the theory and practical point, aiming to bring forward valuable suggestions for the development of China's PFI.