Research On The Application Of PPP Model In Railway Projects

Transport as an important part of national infrastructures. plays a more and more important role with the social and economic development. The railway transport as the backbone of transportation system is more and more urgent to adapt to the requirements of the pace of economic development. However, compared to our country's high economic development level and the pace of development, the modernization construction of railway is relatively slow. Therefore it is very important to speed up the modernization of railway construction.improve the. comprehensive transportation ability and railway service level. This is also a necessary requirement to promote China's eco-social development soundly and rapidly.From the founding of our country to the present, the state has increased investments in railways, constantly tries new ways and channels of financing, and has done some reforms on the investment and financing system. Although we have made some progress, the overall development status of China's railway project is not satisfactory:the contradiction between supply and demand has not been effectively alleviated. Many problems have been existed for a long time, such as single investors, narrow financing channels, backward financing ways, low degree of market and so on. In order to achieve "the long-term railway network plan" development goals, promote the development of the railway, it is particularly important to innovate financing ways of railway construction to solve the problem of construction funds.The concept of PPP (Public-Private-Partnership) was put forward by the British government in 1992, namely "public-private partnerships", which refers to the public sector and private sector provide public goods or services in a way through partnerships. PPP mode are widely used in public areas of the world since the 1990 s in which time it has been popular, including urban water, transportation, education, hospitals, public safety, even in the aerospace, military, prisons and other areas, private sector is participated, which has been an important financing model in public infrastructure construction. PPP model has inherent advantages. the ability to combine private capital and government departments organically, which achieves a win-win situation effect through public and private combination of both complementary strengths:to offset finance capital insufficiency and solve the problem of lack of project funds:to promote the investment subject diversity:to allocate risks reasonably and increase the possibility of successful financing:to control construction cost and improve the operation efficiency.This paper analyzes the feasibility and development prospects of PPP model in the application of China's railway construction project:we can make up large sums of money gap by introducing the private capital for high speed railway development. and ease pressure on railway construction funds. The application of PPP models in railway projects also can promote China's railway investment and financing system reform, and speed up the process of modernization of the railway. Accordingly, the PPP models introduced to the railway construction financing has important practical significance.This paper is divided into five parts:PartⅠ. Introduction. Introduce the application background and significance of PPP models in railway project finance:review domestic and foreign scholars researches on railway project finance; explain the methods and ideas of this study and the main structure of the paper.PartⅡ. the analysis of the status of railway project financing. Analyze basic economic attributes of the railway, the Chinese railway financing situation, and point out the main problems of the current Chinese railway financing mode.PartⅢ. PPP model overview. Describe the concept and classification of PPP model:analyze PPP model in the application conditions of domestic and foreign railway construction:point out the superiority of the PPP models.Part IV. the feasibility of application and the framework of the PPP model in railway construction. Discusses the feasibility of application of China railway project; design the frame structure of PPP models in railway construction. including the relationship between the participants, operational processes and risk management in railway construction of PPP models. Part V, related recommendations of PPP model applied in the railway project finance. Put forward countermeasures of railway project financing from the macro and micro levels.