Application Research Of Non-operating Infrastructure PPP Mode In Hanjiang District

With the accelerating urbanization in our country,infrastructure has become an important public good for the economy,social development,and the people at large.In the past three decades,with the accelerated economic development and continuous maturing of China's socialist market economic system,to meet the increasing material and cultural needs of the people,infrastructure construction in China has changed from being dominated by the government to a new model in which the market operates and the society participates under the guidance of the government.The public-private partnership model(PPP)refers to the partnership built by government and social capital to provide public goods or services.It takes advantages from both the government and the social capital for joint risk and benefit sharing,accelerates the transformation of government functions and the separation of government and enterprise affairs,helps lower the entry access barrier for companies to achieve higher economic vitality and creativity,and also improves the effectiveness of fiscal financing and management mechanisms.Therefore,PPP model has been widely used in non-operational infrastructure projects in recent years.The first section of this article stated the definition of non-operating infrastructure and the PPP model,followed by a detailed analysis of the traditional financing models in the non-operational infrastructure projects,and an overview of the traditional financing model in HanJiang area.Based on the PPP model theory,the theory of public goods,infrastructure vendibility assessment theory,and principal-agent theory,this paper proposed that it's both necessary and feasible to apply PPP model to non-operational infrastructure projects.This paper introduced the exploration of the application of PPP model to non-operational infrastructure in Yangzhou city,including the overall design,main implementation plan,rights and obligations division,and the current progress of the first PPP project in Hanjiang District:the 611-provincial highway HanJiang project(611 projects).Comparison with similar projects of other local governments of similar level revealed that the 611 project suffers from low implementation rate,difficulties in controlling execution risks,flawed systemic protection,and incapability in management of local governments.Thus,this article put forward the following policy recommendations for Hanjiang District government:1)standardize the implementation of PPP project to ensure the project rate,2)formulate appropriate policies to create a good environment for development,3)straighten out management mechanism to form reliable systemic protection,4)transform functions to strengthen the government's role and ability to execute,and 5)set up a fair competition mechanism to promote the enthusiasm of social capital to participate.