Research On Public Private Partnerships In Urban Subway Construction In China

With the development of urban economy, the accelerated urbanization and the heavier pressure of urban transport, urban congestion problem has become more and more serious. The urban subway will play more and more important role in public transport aspect. However, as a public product, subway has the characteristics:large investment, long payback periods and low operating profit and so on, which give a large pressure to the public expenditure of government. Because the single investment operation of government cannot content with public demand, the other countries in the world are exploring the new operating model. The Public Private Partnerships is one of the new models and becomes an important development model to solve countries’financial difficulties. The beginning of this model in our country is not early, since the Beijing Metro Line4created a partnership model for public-private, which promote cooperation between the public sector and the private sector. Depend on that:achieving diversified financing channels, reducing financial pressure and optimizing the subway transportation service quality and operational efficiency. Public-private partnership model was extended to urban subway operation field in our country. The article focuses on the public-private partnership model in the city subway, particularly in Beijing Metro Line4, the status of Chinese public-private partnership mode, the specific mode of operation and the problem in the application process. To combine the development experiences of subway public-private partnership mode from developed countries, explore Chinese development strategy on the model of public-private partnerships in urban subway construction and promote Chinese public-private partnership mode to the higher level.