The Analysis On Introducing PPP Model Into Infrastructure Construction

Urban infrastructure is critical to the development of the whole city, which is the basic conditions of urban economic development and important indicators of the high level of urbanization, and is also helpful to increase the people's living standards. With the rapid development of economic and social development, increasing demand for infrastructure construction brings more infrastructure investment needs, which becomes the Government's heavy financial burden. In recent years PPP the Government has gradually paid much attention to PPP and applied the PPP into infrastructure construction, with the support of government policies, more private capital has also started joining the infrastructure construction.This article analyzes kinds of the PPP concept and explained the PPP model theory on the basis of abundant literature. Combined with the experience of developed countries and the current development in China, we can know private capital entering the field of the infrastructure construction is necessary and feasible. Because the PPP development in China is also immature, more problems are appearing that have effected and restricted the application of PPP mode, and also prevent private capital to enter the area of infrastructure construction. This article focuses on the application of PPP in China, and grasps this viewpoint as a main line that private capital will be the important role and main force in PPP mode of facilities construction, based on the PPP financing theory and the "risk share, interests shared" features, combining a series of problems arising in the development of PPP with PPP application cases in China, to sum up the reasons what are hindering PPP application and the main cause preventing domestic private capital to enter the field of infrastructure.After instance comprehensively analyzed, the reasons come from political and market risk, while also come from main participators missing interests in project. Then from political, and market and main participators'interests three aspects, this article analyzes the specific reasons why PPP applied difficultly in China and that hinder private capital from participating PPP. And given these problems, the article establishes the operational mechanism to improve PPP application and attract more private capital to participate infrastructure construction by PPP. At last the passage expounds Chongqing Olympic Center stadium project which is one of the ten selected projects in Chongqing, and give some proposals for practical application of PPP.