Dalian Metro Line 5 Financing Model

In the Third Plenary Session of the 18 th Central Committee of the Communist Party of China, it proposed that to establish a transparent and standard mechanism for investment and fundraising for the city's construction, and allow the social capitals participating in the investment and operation of the infrastructure through franchising and other methods. After that, some official documents were published one after another such as the Opinions of the State Council on Strengthening the Management of Local Government's Debt, and the Notice of the Ministry of Finance on Promoting the Public-private Partnership Mode. Along with this trend of financial reform, the Public-private Partnership Mode(PPP Mode) was becoming clear gradually, it was carried out vigorously in the whole nation within only one year.This paper exemplifies the PPP fund-raising Mode of Dalian Metro Line 5 and introduces the basic theories of PPP Mode in detail including the conception, operation procedure and the precondition of adopting PPP Mode. And it takes the Dalian Metro Line 5 as an example to undertake a case study. Firstly, it provides a basic description of the project, and from the perspective of PPP Mode, it analyzes the risk of the project and determines the risk allocation scheme. Secondly, it undertakes the VFM(Value for Money) Qualitative Evaluation, VFM Quantitative Evaluation and governmental bearing ability argumentation, which provides theoretical bases for adopting PPP Mode. Lastly, according to the features of this project, it regulates the PPP Mode implementation scheme for Dalian Metro Line 5.The PPP Mode in infrastructure construction is not only receiving the support from the nation's policy, but also embracing the enthusiasm from private capital. When every local government constructing the infrastructure, they can adopt the PPP Mode, especially the infrastructure like metro lines. It can remit the debt burdens for the local government, and at the same time, it can introduce the high efficient management of social capitals so as to provide service of high quality and high efficiency for the citizens.This paper consists of 6 parts, the first one is introduction, briefly describing the research background as well as the research contents and technical route; Next the second one introduces the related theory; the third part describes the basic situation of Dalian Metro Line 5; the fourth part analysis of the feasibility of Dalian Metro Line 5 using PPP based on the above theory; the fifth part formulated the implementation of program.