Research On The PPP Mode In Industrial Town Construction

Since the reform and open policy, the economy of our country is developing faster and faster. Moreover, urbanization is accelerating. By the end of 2014, the rate of urbanization has increased from 17.92% to 54.77%, and the urban population has surged from 172 million to 749 million. Although the overall urbanization rate has exceeded world average level, the old mode of urbanizationhas shown more and more contradictions and problems,including the separation of industry and city,urban and rural split,predatory exploitation of resourcesetc. Asa result, a large number of "ghost town" and "empty town" have been constructed, causing serious damage to the ecological environment, wasting a lot of energy and resources.Under this circumstances, industrial town is proposed as a new mode of urbanization. The development and construction of industrial town emphasis on the integration of urban and ruralas well as the combination of industry and livability,Promoting the development of emerging industries and realizing the upgrading of regional industry system through transferring,integrating and hatching industries.Thusleading our country to build a resource-saving andenvironmental friendly society. Traditionally, industrial parks aredesigned, constructed and operated mainly by the government.But this lead to a series of problems due to the lack of funds and related technical personnel. Therefore PPP mode is introduced to the construction of industrial city so that the efficiencyin the development, construction and operation of new cities would be improved and the public sector’s financial funding gap would be made up.PPP is short for public-private partnership. It is a kind of relationship built by government departments and social capitals based on a specific project.By this kind of cooperation, the project participants can tap their respective advantages, share the risk and profit with each otherand providebetter public goods and services to the public. Since 1980s,chinese researchershave devoted to explore the PPP mode. In spite of the twists and turns, PPP mode has still been fully developed inour country afterthe officialapproval of the first BOT project by national development and Reform Commission in 1995.As of right now, the number of PPP projects which have been carried out reach tomore than 1000, including transportation, communications, energy, water resources and other projects. This resulted in a CNY 9 trillion total investment. PPP mode in China has been rapidly promoted both in size and number.And allowing social capital to participate in the investment and operation of urban infrastructure was proposed at the Third Plenary Session of the 18th Central Committee.After that,PPP mode has aroused greatattention of the whole society This could probably lead to a new round of development of PPP mode in the future. Projects involving PPP mode will gradually increase.The field of this application will quickly expand. In recent years, PPP mode has been more and more introduced to the construction of industrial park whichis regarded as a special and comprehensive project.By this way, the government can combine their social responsibility and coordination ability withmanagement efficiency and technology advantages of social capitals, so as to effectively reduce the cost of constructing new cities, transform government functions and reduce the financial burden.This paper is divided into five parts. Chapter oneis prolegomenon which mainly introduces the research background,significance, research status quo, related concepts, innovation and the main framework ofthis paper;The second chapter firstly introduces the status quo of industrial city’sconstruction and financing. Then raised issuesfrom the construction of industrial town and financing; The third part gives an introduction of the advantages of PPP mode and related theoretical basis which includes Principal-agent theory,New public management theory and Theory of public goods; On the basis of chaptertwo and three,chapter IV firstly proposed that PPP modeshould be introduced intothe construction of industrial town.Then it analyzed the necessity and feasibility of the introduction of the PPP mode and made a rough design for financing structure of PPP mode. At the end of chapter Ⅳ.Guan industrial town is analyzed as a successfulcase of PPP mode,revealing the key factors of PPP mode application, providing valuable experience for industry town’sconstruction of China through PPP mode; And finally, chapter five put forwardrelevant recommendationsin terms of laws, government building and personnel training to ensure that PPP mode can be better implemented in the construction of industrial town.