To Explore The PPP Model How To Apply The Highway-ring Around Of Lanzhou

The reconstruction of the ancient Silk Road, i.e. the scheme of One Belt and One Road(OBOR), is the connection of politics and economy, domestic and foreign affairs as well as history, is the integration of the “Opening to the West” policy and the Western Development and is the modern upgraded combination of national security and economic strategies planned by generations of the central government. The paper expounds the important role of the PPP investment model in the current stage of national economic development, its evolution and development. A large collection of document and a deep analysis on the present researches at home and abroad bring about an accurate definition of the PPP investment model.The paper concludes that PPP aims to provide public products or services and involves the cooperation of the entire process including preparation, bidding, financing and implementation by public sectors and private institutions.Since the 12 th Five-Year Plan, the central and local governments at various levels have been increasing investment in public infrastructure construction in western areas. But neither funds from the government nor traditional investment models can satisfy the demand for supporting construction of infrastructure and public utilities under the fast economic development along the OBOR region. Based on projects including the Xilang Sewage Works in Guangzhou, the Line 4 Subway in Beijing, the freeway from Peiling to Fengdu in Chongqing and the Wangxiaoying Sewage Works in Hefei, the paper analyzes the important role of PPP in the infrastructure construction.There exist problems such as the shortage of construction funds, inefficient business, poor management and large time consumption in the traditional infrastructure construction. By contrast, the PPP investment model not only can reduce the investment burden and risk of the government in the early construction period, but also can improve the service quality of urban infrastructure. In addition, the private capital can be utilized in projects to increase efficiency and reduce risk. Private sectors can be involved in projects at an earlier period to assist government departments with the feasibility study. PPP can realize a win-win situation among the government, enterprises and the society. On accounts of PPP advantages in infrastructure construction, underdeveloped regions in the west urgently need to speed up the infrastructure construction. Therefore, PPP is the ideal choice for the belt freeway construction in Lanzhou.Finally, the paper proposes to borrow ideas from the application of PPP in the infrastructure construction in China for the belt freeway project in Lanzhou. It also suggests elaborate schemes on business model, legal framework and organization and management model as well as practice in estimated investment, financing, share repurchase and financial analysis. The smooth progress of the Lanzhou project can be insured with a strict control on funding risk, share repurchase risk, construction risk countermeasures.