PPP Model

Cooperation between the Government and social capital(PPP) is one of the main ways of social capital in urban infrastructure construction. This mode is the rise in the United Kingdom, after a global scale has been widely used in various areas of public administration. 1985--2011 global infrastructure PPP nominal value of $ 775.1 billion, with the continuous progress of the integration of urban and rural areas, the demand for urban public infrastructure continues to increase, totally dependent on government funds to provide public goods and services model cannot meet this huge demand, while the PPP model is the practice of States in the utilities sector reform a useful attempt, can be a good solution to this problem.Cooperation between the Government and social capital has always been an important topic of China’s economic field. Currently economists reach a broader consensus: to carry out the government and the social capital of cooperation, investment and financing mechanism conducive to innovation, social capital widening investment channels, enhanced endogenous growth momentum; there are all kinds of capital will help promote mutual integration, complementary advantages, promote investment diversification, the development of a mixed economy; help straighten out the relationship between the government and the market, to accelerate the transformation of government functions, give full play to market allocation of resources decisive role.With the Third Plenary Session of the eighth ended successfully in 2014 is undoubtedly the PPP’s "harvest", the government and the social capital and cooperation has become a hot word. Promote the use of PPP model is not only a micro-level "mode upgrade", it is a "institutional mechanisms change" macro level. PPP Mode positive effect on China’s economic development is unquestionable, but because of China’s PPP-related policy constraints remain in a dynamic process of improvement, social capital can neither side fully demonstrated self investment preferences, local governments cannot fully reflect the social capital for public articles and local infrastructure investment preferences, and the current system of local government lacks effective supply of public goods and local infrastructure fiscal stimulus, there are still many obstacles leading to practical applications in specific aspects of the implementation of the PPP model. Such as project continuity interruption caused by a lack of government general spirit of the contract, risk-sharing mechanisms appear immature full embrace all-inclusive government side phenomenon, income distribution mechanism is not perfect cannot guarantee long-term stability of social capital side yields and other issues. In this paper, the use of urban infrastructure in the PPP model for the study, compared to overseas success stories, perfect PPP project system. China national stadium and Xinzhuang Industrial Park CCHP an example, analyzed and discussed the feasibility of PPP and binding, and then from the external environment, fiscal policy and legal constraints in terms of PPP model proposed in the nationwide promotion practice restraint barriers and Constraints draw conclusions for the relevant aspects of the proposal is feasible.