Research Of The PPP Financing Model On China's Urban Rail Transit

With the high developments of Chinese economics, the urbanization's speed is further high, which followed by traffic congestion and urban pollution. These problems are becoming more and more severe. Major cities are actively developing rail transport, but the construction and operation need enormous funds. It is clear that the traditional financing pattern mainly by government investment doesn't meet the needs of the development of urban track transportation, consequently, multiplex and market financing patterns are the inevitable trend. The application of the Public Private Partnership (PPP) financing model not only can alleviate the pressure on government expenditure effectively and increase the efficiency of investment and operation, but also will not have the problem of the public property. Therefore, the financing model of PPP in China has a broad perspective. PPP model is still on the primary stage in our urban rail transit construction. The pattern of application is also immature. So the study of PPP financing model is important to the urban rail transit construction.Firstly, it is analyzed the PPP financing problems of the current urban rail transit construction in our country and summarized the experience of PPP financing model in overseas in the paper. Then, it is deeply analyzed the PPP financing pattern design, the risks of the PPP financing pattern and the methods to avoid the risks. Finally, some advices are gived on the policy, law, institution and environments in order to regulate PPP application.The paper offers some useful reference to the use of PPP financing model in the rail transit construction.