An Empirical Study On Financing Mode Of Infrastructure Construction In Qingdao

In August 31,2014, the Standing Committee of 12th NPC adopted the "Decision of the Standing Committee of the National People’s Congress on the Revision of the Budget Law of the people’s Republic of China" in 10th meeting. In the new Budget Law regulation mechanism, the traditional urban infrastructure financing mode, which is based on the "municipal funds, proceeds from land using right transfer, local investment and financing platform", will be difficult to sustain. "The cooperation mode of government and the social capital" (i.e. ’Public Private Partnership’, referred to as’PPP’) will become an important mode of financing urban infrastructure in future. Application of this mode which has a wide application scope, obviously advantage compared with other financing model, will enable the public and private sectors to make full use of their respective advantages and experience, to provide quality products or service to the public.Based on the concept of PPP, a"4-elements analysis framework" was introduced in this paper to study PPP model:the parties concerned in the cooperation, project analysis methodology, financing mode and mechanism, and the PPP project operation procedures. With this framework, intensive studies were conducted on international and domestic cases of successful PPP projects, in order to analysis, inspection, and summarize the key factors. Through the typical case study, five key factors to successful application of PPP were identified:good governance system legislation mechanism, reasonable selected and well designed project, suitable partnership, constructive sharing and undertaking risk mechanism and helpful investment environment.Considering the current situation of infrastructure construction in Qingdao, the author pointed that. PPP model has many practical advantages, and summarized a set of application advices, hoping to add value to the study and practice of infrastructure construction in Qingdao. At the same time, the author attempts to design the financing model of infrastructure construction project, based on the reality of the situation of QingdaoFinally, the prospect of the application of PPP model and empirical research was put forward in this paper.