Implementation Plan Design Of City Z Modern Tram Lines Project Based On PPP Mode

In recent years,along with the booming of the economy as well as the significant progress of the urbanization,such problems as traffic Congestion and haze in City Z City have witnessed increasingly severe status.In view of these situations,the Municipal Government of City Z decided to construct 28 tram lines,the total mileage of which amounts 426.9 km,in addition to the existing undergoing metro projects.On one hand,the construction of modern tram systems requires huge amount of investment,on the other hand,the government debts of City Z have increased sharply due to the previous financing mode,under which all the infrastructure construction costs had been borne by the government.Furthermore,as stipulated by the series of regulations consecutively introduced by the central government of China,all government financing platform vehicles shall be stripped off from governments,no extra financial debts shall be incurred by the financing functions of the government,and the amounts of the local government financial debts shall also be subjected to quota management.Therefore,the research on the investment and operation of the modern tram lines under PPP(Public-Private Partnership)mode becomes an important subject.In this paper,the Author tries to design an Action Plan of the PPP Project of Modern Tram Lines for City Z in response to the technical and economic conditions of the Demonstrative Tram Line of City Z,based on literature reviews and the external experience.The literature review focuses mainly on the relevant theories in aspects of quasi-public goods,urban rail transit economic characteristic,as well as PPP investment and financing,and the external experience includes the practice and modes of such foreign and domestic rail transit PPP projects in London,Singapore,Beijing,Foshan and Hancheng.The Action Plan covers such detailed sections as selection of operation mode,planning of operation process,determination of boundary conditions,distribution of project risks,design of transection structure,design of contractual system,design of project supervising mechanism and estimation of financial incentives.To pre-assess the possible outcomes of the PPP Action Plan,this paper,by adopting the technologies of VFM analysis and financial capacity analysis,commences preliminary quantitative analysis on the Action Plan in aspects of the economic efficiency and the extent of influence to the financial status of the City Z Municipal Government,and finally puts forward some conclusions.The research in this paper could put forward solutions for the critical and challenging problems during the execution of the PPP Project of Modern Tram Lines for City Z.It is hoped that this paper could also be of reference for the other cities of China for the construction and operation of the modern tram projects with PPP mode.