Study Of PPP Mode To Infrastructure

Infrastructure is a necessary condition for the development of the city and manifestation of modernization.With the acceleration of urbanization process in China and rising of people's living standards,the demand for infrastructure and public services is also rising.One hand,the government supply of infrastructure and public servicesover a long period of time,resulting in the provision of public services unableto meet people's needsdue to financial constraints.On the other hand,the rapid development of private economy has laid the material and technical basis for its participation in infrastructure construction and operation."CPC Central Committee on Comprehensively Deepening the Reform on Some Major Issues Concerning" after Eighth session of the Third Plenary emphasizes that we should abolish all forms of unreasonable regulations of non-public economy,eliminate all kinds of invisible barriers and support non-public economic enterprises to enter the field of franchise business Category.In this context,it has become an urgent problem how to mobilize social capital investment in infrastructure construction,fulfilling the government-led and broad participation of social capital,changing the situation that the infrastructure construction has been dependent heavily on government's funding for a long time.This article introduces the development process of infrastructure investment and financing of our country since founding and three current financing models,indicating what led to current infrastructure investment and financing difficulties faced by that shortage of funds,over-reliance on debt financing,chaos of the development of local government financing platform,over-reliance on land finance.Based on this,we analyze what causes of current infrastructure investment and financing difficulties faced by is mismatching of financial authority and powers of local government,soft constraints of financial resources,soft budget constraints of projects and absence of project legal person responsibility.And then,in order to resolve the current infrastructure investment and financing difficulties,this article elaborates PPP model and related theories.firstly and This article pointes out the introduction of PPP model for deepening the meaning of investment and financing system and practical feasibility of the introduction of PPP model.Then,this paper compare PPP mode with the impact of government investment in infrastructure industry output value from both macro level and micro level through empirical analysis,using time series and panel data.We came to the conclusion:whether from a macro point of the entire industry infrastructure,or the microscopic point of view,of water and electricity,communications,municipal services,compared to the government-led infrastructure,PPP mode promotes the industry to increase output more effectively.The main reason is:introduction of private capital to infrastructure,no only as part of the national economy directly increases the total economy,but also as a social advancing costs leds to the development of the industry on the downstream;the introduction of private capital to infrastructure promotes the employment;compared to government investment,PPP mode does not crow out;the private sector has better experience in project management to improve operational efficiencyAt last,based on theoretical analysis and empirical analysis,combining the reality of PPP in our country and following the principle of "government-led,private capital-based",This article proposes five recommendations of improving government functions,expanding financing channels,proposing fiscal support,the market mechanism and the legal environment to support the development of PPP mode.