Public Rental Ppp Financing Model

In recent years, China’s major commodity prices increased significantly, far beyond the low-income people in our country withstand the range. Therefore, how to solve the housing problems of low-income residents become the top priority of the current government work.Due to limited local government finances, construction of affordable housing is facing a huge funding gap, which also lack a lot of public rental construction funds. Therefore, the development of public rental, financing issues must be effectively addressed first. Reasons of public rental funds current problems are: First, China’s current construction of public rental funds are financial allocations, but also because of its nature of social security, while the private sector has a profit-driven, which is reluctant to engage the private sector public the main reason for the construction of rental. So serious lack of funds for construction of public rental, public rental restricts the expansion of the scale. On the other hand, public rental demand, to the government brought greater financial pressure. For these reasons show the smooth construction of public rental requires the government to seek to broaden the sources of funding, to attract more investors, reduce the fiscal burden of government, accelerate the construction and supply of affordable housing, to solve the difficult problem of housing for urban residents. April 21, 2015, issued "Ministry of Finance, Ministry of Land, Housing and Urban Construction, People’s Bank of China, the State Administration of Taxation, China Banking Regulatory Commission on the use of government and social capital model of cooperation to promote investment in public rental housing construction and operation management of the notice", we decided to use the government and the social capital cooperation model(public-Private Partnership) to promote investment in public rental housing construction and operation management. This provides the ways and means to solve public rental construction financing problems.According to the background analysis, this article discusses issues related to the introduction of PPP financing model development of public rental construction. First, public rental, financing model, PPP financing model concept comb. Secondly, the use of PPP financing model construction of public rental SWOT analysis, explained in detail from four opportunities, weaknesses, threats, strengths, and financial feasibility analysis, Jinan City West Jiang Yu public rental housing as a case simulation using PPP financing mode, perform net present value analysis. At a discount rate of 6%, when NPV equals 0, draw private capital in less than 19 years to recover the cost, while the life of the franchise project should be more than 20 years. So as to arrive using PPP financing model of public rental construction in full compliance with China’s current actual situation in society; thirdly, the use of PPP financing model for the construction of public rental basic pattern design, including PPP financing model participants relational schema design and operational analysis; and finally risk analysis using PPP financing models exist and policy recommendations targeted for the current construction of public rental use PPP financing model.Through this study, the following conclusions;(1) First, Jinan West Jiang Yu public rental use PPP financing model to simulate the case analysis, the PPP mode is suitable for construction of public rental and get a stable income;(2) Secondly, the construction of public rental financing PPP model and mode of operation;(3) the last run for the protection of public rental PPP financing projects in a stable environment, we propose the establishment of public rental use PPP financing model of governance mechanisms including the establishment of a policy level PPP co-ordinating body, establish a risk management mechanism and supervision mechanism; change the role of government, the current government should be leading role in the construction of public rental, into cooperation with the private sector to provide low-cost housing and services in the supervision, guidance and collaborators role; improve relevant laws and regulations, the introduction of the implementation details as soon as possible; establish a sound financial system, the government should provide the necessary financing for the private sector to coordinate services for the private sector to provide financing guarantees equality allowing domestic private capital into the financial sector; the establishment of professional talent training mechanism policy recommendations.