Research And Application Of VFM Evaluation Method For Public Infrastruction PPP Project In China

With the development of urbanization process in our country,the demand for people with infrastructure and public services become higher and higher.However,in the short term only rely on government finances can't satisfy the huge investment on the infrastructure.In order to promote the development of public infra structure and reduce the financial burden,the government begin to introduce PPP model in our country.Compared with the traditional government procurement model,PPP model can reduce the government financial pressure which also can introduce advanced management skills and social capital to improve the project operation efficiency,reduce the probability of risk and save the cost.Since the PPP model with the adventage of paternership,benefit sharing and risk quintal,from the central to the local government are actively encouraging social capital to participate in the infrastructurefields.However,the local government using PPP mode mostly is to comply with the policy or satisfy the demand for investment not the result of rational analysis and objective comparison,thus leading to a lot of PPP project failed.So at the early stage of the public infrastructure PPP projects,the project should be properly evaluated to determine whether it is suitable for use of PPP model.According to(financial [2015]167)?PPP guidelines for evaluating the value of money(for trial implementation)? in our country when the project adopt the PPP model,it should be carry on VFM in the preparation stage.Only through the evaluation of VFM the project can enter next stage.The paper based on the understanding of the relevant theories of PPP model and VFM evaluation method,which analyzes the problems of PPP projects implementation in our country and the basis for the realization of VFM.The papar by construct the VFM model of public infrastructure to value PPP project from qualitative and quantitative view.Also the paper through the case study find out the reasons for the realization of VFM.Last,we put forward some suggestions on how to carry on PPP project successfully.At the same time,we also provide a reference for the gover-nment using the VFM method to evaluate the PPP project.