A Study On The Introduction Of PPP Model Into The Financing Mechanism Of Rural Infrastructure Construction In China

Infrastructure is the material basis for regional development in economic,financial, cultural and other aspects, directly influencing the pace of development of local undertakings, whether rural or urban. As a result, the construction of infrastructure must be synchronous or ahead in economic construction. Especially in our nation’s economically backward rural areas, the infrastructure is lagging behind that in the city, seriously inhibiting the economic development of rural areas, and therefore, our country attaches great importance to the construction of rural infrastructure based on the policy of three Fs. However, there exist some issues like low level of agricultural infrastructure and material equipment, backwardness of rural living infrastructure and the shortness of development of rural social undertakings in our nation’s rural infrastructure construction. Accelerating the process of rural infrastructure construction and changing the hysteretic status require a lot of money.But compared with the integrated financial markets providing adequate monetary support and the government-led diversified financing channels for multi-stakeholders in the overseas financing mechanisms of rural infrastructure construction, our country’s financing mechanisms of rural infrastructure construction characterized by taking government financial investment as the major method of financing has some structural problems like inadequate investment, structural imbalances tend to serve water conservancy facilities construction, emphasis on construction and neglect on conservation, low efficiency of fund usage, lacking price and charging mechanism etc.Hence, it is urgent to reform our country’s financing mechanisms of rural infrastructure construction in order to increase the supply of capital used to construct the infrastructure.PPP financing model is the governmental method to resolve the debt pressure,allowing mode private capital through public-private partnerships in infrastructure building, targeted to increase the supply of capital infrastructure. In this paper, we center in our rural infrastructure financing mechanisms in the supply of capital, basedon the rural financial market theory, item discrimination theory and infrastructure-related theory, comprehensive sort of on the PPP financing model in the financing risk, risk sharing and distribution of benefits and case analysis, research methods combining theoretical and empirical. With the use of measurement tools,innovative use of investment in fixed assets in rural research data and its role in rural economic development, the results confirm the increment of investment in rural infrastructure will positively promote rural economic development, so the use of PPP financing model increasing rural capital supply favor rural economic development infrastructure.Therefore, this article from the perspective that the PPP model has enriched the supply of capital financing rural infrastructure, it is advantageous to achieve investment diversification. It is a good choice for rural infrastructure and innovative financing mechanisms, according to the actual economic situation in rural areas,infrastructure Situation facility, using the most appropriate PPP financing model, but PPP financing not work independently, its government must establish a favorable policy environment and legal environment to improve the rural financial market under the premise. Based on incentives to attract private capital to participate in the rural Elementary infrastructure construction, accelerating the reform and innovation of rural infrastructure financing mechanisms.