Research On The Mode And Risk Of Company A Applying PPP Model

Under the trend of the rising rate of our country’s urbanization, People’s demand of infrastructure and public services grow up sustainably and the government put a lot of financial and material resources in these areas. With the increasing of local government debt, a series of policies were introduced to control debt increasing disorderly. Especially the introduction of "State Council on strengthening local government debt management advice"(Guo Fa No.43) by state council which marks the Government-led investment model may not be able to continue.Under this circumstance, the discussion of "social capital to allow participation in urban infrastructure investments and operations through franchising and other means" was passed in the Third Plenary Session of the 18 th. CPC Central Committee, which built the foundation for vigorously promoting the PPP(Public Private Partnership) model. PPP model not only can solve the problem of lacking capital in developing public service of government, but also could optimize the allocation of social resources by utilizing the market mechanism to manage related projects more flexibly. Compared with traditional government-led model, PPP model is considered to be a more efficient model to build and manage infrastructure. But if use it inappropriately, it could also be harmful to government, public and private, which may lead to a lose-lose situation.Based on the study of related material both domestic and abroad, this essay analyzed the development history and basic theory of PPP model. On the basis of analyzing the related theory and special cases, combined with the development of an economic development zone in Suzhou and private capital to probe the feasibility and advantages of introducing the PPP model in the implementation of projects for A company which is a state-owned enterprise belongs to the zone. Meanwhile the essay analyses the main types that may be used in the course of project operation under PPP model, this risks that may encounter, and appropriate measures to take. This paper argues that under the current condition of state-driven implementation of PPP policy. PPP model can be successfully used in some projects of company A, and some suggestions were made in the implementation.