Research On PPP Mode In The First-class Land Development

The first-class land development can regulate the land market effectively, revitalize stock land and utilize it efficiently. With the development of urbanization, the demand for first-class land development is stronger and stronger. Nevertheless, the increasing local government debt imposes limitation on its funding channels, which leads to the government itself unable to sustain first-class land development. At the same time, many problems existing in prevailing first-class land development modes, such as difficulties in demolition and lack of efficiency, also limit the first-class land development. Therefore, how to break through such problems as the first-class land development are facing and explore new first-class land development modes, is of great significance to the first-class land development.Firstly, this paper analyzes the status quo of first-class land development, and find the problem in the first-class land development. And with the widely use of PPP mode in infrastructure and public service facilities, there occurs a preliminary idea that apply PPP mode in first-class land development, at the same time, the necessity and feasibility of the appliance of PPP mode to first-class land development are analyzed. Then, this paper builds the first-class land development PPP mode and conducts risk-benefit analysis. Finally, the applicability of this mode is verified as the result of using it in real cases, along with which some suggestions for the promotion of this mode are given. After analysis, this paper draws the following main conclusions:(1)The PPP mode is characterized by partnership, benefit-sharing, risk-sharing, with such advantages as broadening the financing channels, revitalizing the social capital and effectively solving problems existing in first-class land development. So, applying PPP mode to first-class land development is necessary.(2)The PPP mode is widely used in such areas as infrastructure and public facilities both at home and abroad. With abundant practical experience and good policy environment, applying PPP mode to first-class land development is feasible.(3)The main content of first-class land development PPP mode is that, the government and social capital establish a project company, then the project company will be responsible for the financing, development, and so on.(4)This paper expounds the mode participants, operation procedure, capital flow etc., and conducts risk-benefit analysis, chooses fixed benefit mode, and gives a fixed value fluctuating from 6% to 8%.(5)The case analysis proves that first-class land development PPP mode this paper builds is applicable and operable.