Multilateral Financial Institutions Participate In The “One Belt, One Road” Infrastructure PPP Project Research

The Belt and Road Initiative was presented by president Xi Jinping in 2013.The goal of this initiative is to enhance the regional economic cooperation and boost the development of regional economy.The construction of infrastructure is the foundation of interconnection and promote the economy of countries along the line.It also brings great economic benefits and social benefits.Facilities Unicom is regarded as one of the most important goals of The Belt and Road Initiative.This paper analyzes the demand and supply of infrastructure of countries along the Belt and Road and it comes to a conclusion that there is still financing gap.However,as many countries along the route are developing countries,their own economic strengths and management capacity are insufficient.There is still a funding gap in the financing of infrastructure construction.As a result,PPP is a widely used method as it’s a good way to absorb social capital and broaden funding sources.This paper analyzes the development of PPP projects along the Belt and Road and points out that whether the PPP project can be a success is influenced by the political environment,macroeconomic environment and financial market.Furthermore,this paper selects four major multilateral financial institutions participating in The Belt and Road infrastructure construction projects,World Bank,Asian Development Bank,Asian Infrastructure Investment Bank and New Development Bank to introduce their participation in PPP and summarize their common points.Hence,this paper analyzes the way multilateral financial institutions work on PPP projects and comes to a conclusion that multilateral financial institutions can broaden money resources,attract more private money and provide guarantee and technological service.Based on this,this paper gives related suggestions to multilateral financial institutions as well as the host governments.