Practical Research On Land Banking Project Based On The PPP Mode

Withing Chinese market economic system was gradually perfected and the pace of the urbanization process was accelerated, the original "free of charge indefinitely,no flow" land-use system have been turned into paid, for an definite period of time the flow of land-use system. At the same time, more than95%pattern of land grant have been adopted and land invisible markets were breeded, speculation and "rent-seeking" activities hane been intensified. To control the situation, the government firstly withdraw the land which temporarily unused or structure is irrational, then according to the policies and the actual demand of land, put the land back in the land market from the repository,this is the Land Reserve System.The land bank requires large amounts of money, there are three land bank financing methods in our country. They are the government funds, bank loans and the land premium retained. Neither cost nor risk in the government funding, the capability of government financial and financial strength is limited, the allocation of funds in the amount can not meet the funding needs of the land bank. It is difficult to maintain the operation of the land reserve institutions, and the financial pressure is heavy. There is huge number of bank loans and land reserve agency to borrow from bank as the identity of a debtor, that need to repay the debt on schedule, the cost of capital is high. Only a small part of land premium can be injected into the reserve funds used to develop the new land bank projects. Funds are limited, and financial support can only be provided in the subsequent development. It is a lag problem, so the land premium can not be used as the main mode of financing in the land bank financing process.In view of the above questions, it is combined with the unparalleled advantage of the PPP mode which are the successful application of public utilities and other as well as its own traditional management methods. In the beginning, the PPP model to make a new way of thinking on the land bank, we put the PPP model into the land reserve project to explore the operation mode of the PPP model in the land bank project.In this paper, backgroung with the DLLT project, based on a large number of PPP mode land reserve system research literature at home and abroad, the feasibility of PPP model in the land bank project as well as the land bank project PPP mode of operation procedures, risk management, control the right configuration, operating environment and structure was discussed.In this paper, according to theoretical analysis on DLLT project, explaining that the application of PPP mode in the land banking project is feasible; design the operational procedures of the project; theoretically, by adopting linear programming design model, we can prove that the risk-sharing of land banking project based on PPP mode which has optimal structure, that is to say, the project’s overall satisfaction achieve maximum when any risk of the project can be undertaken entirely by the project participants who have the largest risk appetite coefficient. As the same time, by actual researching and summarizing the findings, we can get the general result of risk-sharing. For PPP project, using VFM effect as the evaluation of government income to analysis the investment, costs and the values of variable such as income under control rights is continuous variables. Based on this, building the relational model controls rights relate to VFM effects; finally, the paper points out that land banking project PPP mode of operational is rooted land reserve system. In order to ensure the smooth development of land bank project PPP mode, land banking system should run smoothly. In addition, it also has the support of the sound laws and regulations and is protected by mature market supervision system. And based on this, builting the running environment of land banking project PPP mode simply.