Research On Financing Mode For Expressway From The Perspective Of PPP

Since the State Council approved the National Expressway Network Planning(2013-2030)in 2013,local governments have vigorously Constructed transportation infrastructure.Being regarded as the bridge between different regions,the expressway is specially valued by local governments.However,the cost of expressways is relatively high.Faced with the current financial pressure on the governments in most parts of China,how to guarantee the expenditure on expressway construction and operations has become a core issue.In September 2014,the Ministry of Finance officially put forward the concept of “government and social capital cooperation” for the first time.The PPP financing mode emerged as an important way for the government to obtain funds.However,In the process of this mode,some problems occurred.Since the Ministry of Finance issued the “Regulation on Regulating the Management of the Project Bank of the Government and Social Capital Cooperation(PPP)Integrated Information Platform”(“92 Document” was referred to below)in November 2017,the government has suspended more than a thousand PPP projects.Whether the PPP financing mode is an effic ient and safe financing channel needs further study.Based on the theory of expressway construction and PPP financing mode,this paper summarizes the operation mechanism of PPP financing mode on expressway and sets the PPP project of Hangshaotai Expressway(Taizhou section)as a case to discuss the application of PPP financing mode on expressway construction.The author analyzes the construction background and the operation of expressway(Taizhou Section)from the following four aspects: investment structure,operation mechanism,financing mode and government policy.And It's found that the duty and role of government departments are ambiguous,the ratio of capital requirements are too high,risk-sharing mechanisms of project are incomplete,private capital financing channels are too few,project profitability is low,relevant laws and regulations are not in high status,and conflicts exist among regulations.In view of the mentioned problems,policy recommendations for PPP projects on expressway are put forward,which can give reference for the implementation of the PPP project in China,which are to standardize the market competition model.The transformation of government functions will provide useful suggestions for promoting the landing of China's PPP pro jects on expressway.