Study On Financing Mode Selection And Capital Structure Design Of Public-Private-Partnerships Projects In Urban Rail Transit

Since September 2014,the Central People's Government has published a series of relevant policies about Public-Private-Partnerships(abbreviated as PPP).Based on the application of PPP mode in the field of urban rail transit construction in China,this paper studies the selection of PPP projects financing mode and the design of equity capital structure in combination with the spirit of the policies published by the Ministry of Finance and the National Development and Reform Commission.First of all,according to the spirit of the policies published by the Ministry of Finance and combining with the characteristics of urban rail transit industry,this paper constructs the value-for-money(abbreviated as VfM)model of PPP projects in urban rail transit industry,evaluating whether to adopt the PPP financing model and which specific operation mode to use.According to the VfM model,the public sector comparison value(PSC value)of the urban rail transit PPP projects and the present value of the net cost of the government in the whole life cycle(PPP value)are calculated respectively.Then the value-for-money value(VfM value)can be calculated,and it can be used to determine whether the urban rail transit construction projects is suitable for the PPP mode and which specific PPP projects structure should be adopted.Secondly,on the basis of the study on the participants of urban rail transit PPP projects,this paper uses the principal-agent theory to analyze the influence of the ownership structure of the sponsors of PPP project company on the overall income of the urban rail transit PPP project company.The study concludes that the urban rail transit PPP project company can introduce the project construction contractor as one of the sponsors to increase profits during the construction period,that is,the project construction contractor should be introduced as the shareholder of the PPP project company.According to the optimal equity capital structure model proposed in this paper,when the project construction contractor holds a certain proportion of the PPP project company's equity,the urban rail transit PPP project achieves the optimal equity capital structure.Finally,this paper applies the data of the first phase project of Taiyuan Metro Line 2 to the above models,validating the urban rail transit PPP projects VfM model and proposing the corresponding optimization plan of the equity capital structure to the PPP project company of Taiyuan Metro Line 2.Based on the latest policies published by the Ministry of Finance and the National Development and Reform Commission,this paper studies the financing mode decision and capital structure design of PPP projects,and makes a detailed analysis on the characteristics of urban rail transit,which can provide some reference for the choice of financing mode of PPP projects in urban rail transit and the design decision of equity capital structure when PPP project companies is formed,which has obvious theoretical and practical significance.