Local Governments’ PPP Financing Model

In October 2nd, 2014, the state council of China issued 《Opinions on Strengthening the local governments’ debt management》. After this, the PPP mode is deemed to be the new mode of financing, the effective way for resolving governments’ defects in investing to public product and the situation of shortage of financial funds. This paper firstly proceeded from the local governments’ financing platform, describing the basic concepts and classifications, analyzing its development process, the current situat ion and existing problems. Then analyzing the basic theory of PPP mode, including its basic concept, advantages and practical factors, major investment and financing models and demonstrate methods of Vf M.This paper focuses in Huadian gas CCHP for reconstr uction projects Shanghai Xinzhuang Industrial Zone, a typical PPP project, and make a case study of this project. First of all, making a basic description of the project. Then analyzing from the perspective of the PPP model applied to the project, Including an analysis of the payment mode, select a specific PPP mode of operation, project feasibility studies, PPP mode for the project to bring the value. Finally, summarize the successful experience of the operation of the PPP model in the project, glittering and areas for improvement, in order to provide a reference value for the beginning of 2015 the country gradually launched PPP projects.