A Study On The Application And Improvement Of PPP Mode Adopted By S Sewage Treatment Plant

Central and local governments have long been the main body for infrastructure construction.They are responsible for the investment,construction and running of infrastructure programs.Yet the shortcomings of foresaid programs has appeared along with economic and social development,namely huge investment in advance,long time before profiting and low rate of payback.Due to embarrassed cental and local finance,many programs has failed to be practiced,leading to a slow down in municipal infrastructure.It is hence hard to meet people's growing need for materials and culture.Since 2013,the Ministry of Finance has strengthened the application of PPP mode,thus plenty of PPP programs of infrastructure have been advanced.The large demand for infrastructures and the continuous applications of PPP have made a solid foundation for the engagement of PPP in infrastructure construction,achieving a win-win cooperation for joint public-private ownership.It is critical to conduct a expanded study on the application of PPP in infrastructure under the new normal economy.This paper first introduces the concept,characteristics,classification of the PPP model.The advantages and disadvantages of BOT model and its application scope,as well as the three basic theories of public-private cooperation,capital value and project life-cycle,which support PPP model in infrastructure projects,are also presented.Then,the paper,taking the sewage treatment plant S as an example,introduces the general project situation,construction background and process of the project.There is also an analysis of the life cycle and stakeholders of the project.The operation mode,the transaction structure,the risk allocation framework and the contract system,as well as the government supervision framework are presented to have an overlook on the operation situation of this plant.The weaknesses and problems of the project are found out from four aspects: cooperation mechanism,promotion mechanism,supervision mechanism and demonstration mechanism,which are influencing the successful application of PPP model.Four strategies are put forward to improve the mechanism and guarantee measures are put forward.Reasonable suggestions are given to enterprises and governments to enable them to strengthen cooperation and to seize the country's strategy to vigorously promote the PPP model.This paper also aims to shed some light on the implementation of more PPP programs.