A Study On The Financing Model Of China’s Public Service Projects

The improvement of public service is not only the key task to protect and improve People’s life, but also the key task to promote social harmony and stability. Meanwhile, it is the important guarantee for China to maintain long-term stable and rapid economic development. China’s “Thirteenth Five-Year- Plan” requires local governments to implement and upgrade a large number of public service projects, which will cause great pressure on government’s finance and debt. At the same time, the overall low economic efficiency and service level of China’s public service projects has restricted the performance of their social benefits. To broaden the financing channel and innovate the financing model of public service program has become urgent. Currently, the financing models of public service program include government funding, bank loans, self-financing, BOT and ROT, PPP and PFI, ABS and so on. This paper makes a comparative analysis of the current public service projects’ financing models, combined with theoretical analysis, practical cases, industry characteristics and key successful financing factors of Youth and Children Palace. It also designs a financing model for A City’s Youth and Children Palace. This paper aims to find out the most suitable financing model for Youth and Children Palace construction, finally to make suggestions on how to improve the financing of China’s public service projects.