Using The Ppp Model Of Development Of Urban Public Transport

PPPmodel, as a cooperative way adopted by governmental public department and the enterprise run by the local people as they cooperate in building a specific public project ,is a kind of financing model for building infrastructure , such as urban government utility facilities .Within this model , the right and obligation of the 2 parties' is confirmed by a contract .The enterprise run by the local people will obtain reasonable profit from the working project they financed ,while it provides the high quality service . The cooperation between governmental public department and the enterprise run by local people is encouraged in building and improving the infrastructure such as urban public utilities ,while the financing risk and bear responsibility from the venture should also be shared by the 2parties .By using this model ,the government would acquire enough funds for improving and building the urban public transport facilities , at the same time ,the enterprise run by the local people would enter the filed of building and running infrastructure projects and obtain reasonable profit. PPP model is an optimum way derived from financing for building the infrastructure facilities .Urban Public Transport , as the essential economic element, always influence the social economic activity in the city and the urbanite's living standard directly . The developed transport has been established as the foundation rule for the economic development and improvement of the people's live because enormous achievement has been obtained in the urban transport sector since reform and opening up policy has been performed . But restricted by national finance at present, the development of the urban public transport lags behind the development of other sectors seriously and conspicuously , and can not meet with the citizen's want. Shorting of funds for improving and building urban traffic facilities has caused many problems, which include that the supply and demand of urban public transport facilities is off balance heavily , the environment is polluted by motor vehicle seriously , the traffic jam has been aggravated by disordered traffic conduct , means of traffic management lagged behind they should be ,etc. This made transport sector to be a barrier of development of other sectors.On the other hand ,with the deepening of economic system reform , the most vibrant enterprises run by the local people have already become important strength of promoting the development of economy of our country and social progress , It was pointed out at the Third Plenary Session of the 16th Party Central Committee that allowing non-public capital to enter the infrastructure field , such as public transport utility, which was not forbidden by law or regulations. This policy will bring the enterprise run by the local people a historic opportunity to enter the urban public transport field ,also will make a deep change in investment structure of private capital in our country.Under this kind of background , to introduce the popular PPP model used in the infrastructure sector ,such as urban transport ,in the western developed countries in 1990s, has very important meanings for introducing the private capital to promote the urban public transport in our country. In this text, the basic conception of PPP model, the essential feature, the approach of operation, applied cases have been introduced and illustrated before this model has been compared to BOT model. The prospect of appliance of PPP model , the questions which should be dealt with as we use this model in improving our urban public transport facilities, have been pointed out as well.