Application Analysis Of PPP Mode Of X Road Project In Quzhou City

The scale of China’s infrastructure construction market is increasing with the rapid development of China’s economy.Infrastructure construction has the characteristics of large investment and long payback period.Therefore,infrastructure construction is generally led by the government.The scale of infrastructure construction has been increasing,which has increased the government’s financial burden.In order to solve the contradiction between the increasing investment in infrastructure needed for economic development and the limited government’s fiscal expenditure capacity,the introduction of social capital to participate in infrastructure construction has become an effective one.The solution.The way in which government and social capital cooperate to build infrastructure is called the PPP model(commonly known as the public sector and private sector cooperation model).The PPP model increases the participation of social capitalists in the project compared with the traditional government investment model.Traditional government investment model Under normal circumstances,the social capital party only participates in some aspects of project construction,such as the construction part,and the project is still responsible for construction and operation.Under the PPP model,the social capital party will participate in the whole life cycle management of the project,and the social capital side will lead the investment,financing,construction,operation and other work of the project,and obtain the income according to a certain return mechanism.The introduction of social capital to participate in infrastructure construction is conducive to reducing the government’s fiscal expenditure pressure,and will also bring advanced management concepts and construction techniques of social capital in the project construction process.This paper mainly discusses the PPP mode from three parts:(1)Introduce the basic characteristics of PPP mode,such as the definition and advantages of PPP mode.At the same time,through literature review,the development status of PPP mode risk management theory and VFM theory is expounded,and the future research is summarized based on the summary of development status.Make recommendations in the direction;(2)Taking the X-road project of Quzhou City as an example,the VFM evaluation shows that the PPP model is economically superior to the traditional government investment model,and the financial sustainability of the project is demonstrated on the basis of VFM evaluation.It is concluded that the construction of the project using the PPP model will not cause a crisis for the government’s medium and long-term finances;(3)According to the engineering case,the risk analysis of the X-road project in Quzhou City was carried out,and the project risk was distributed between the social capital party and the government according to the principle of project risk allocation.Figure[16]table[10]reference[50]...