Research On Return Mechanism Of Dynamic Investment In PPP Highway Project In China

PPP mode,i.e.Public-Private Partnership,has gradually become the mainstream mode of investment and financing in recent years under the vigorous promotion of the state.The breakthrough introduction of social capital into public infrastructure projects,especially in highway projects,is becoming more and more widespread in China.However,under the existing market competition system,problems like unclear return on investment and unreasonable sharing of investment risks arise in PPP highway projects due to large amount of investment required,long term of franchise,impacts of social and economic benefits,and the imperfection of relevant legal systems.In order to successfully promote the PPP mode,this paper studies the return mechanism of the dynamic investment in PPP highway projects,and provides a theoretical basis for establishing a clear,reasonable and dynamically adjusted return mechanism for PPP projects,in a bid to achieve the financial feasibility of the project.This paper mainly discusses the dynamic return mechanism of PPP highway project in China.First,it analyses the essence of PPP return mechanism and identifies the main influencing factors through research on literature.Second,based on the case of the PPP project of DQ highway,financial feasibility analysis and effect analysis of the return mechanism of DQ highway project are carried out from a practical point of view using case analysis method and project economic evaluation method,and sensitivity analysisis also conducted to analyze the minimum value of vehicle flow and the ratio of special subsidy funds to payment.Third,through comparative analysis method and qualitative and quantitative analysis method,this paper puts forward countermeasures and suggestions for the design and application of dynamic return mechanism under PPP mode,in the light of the merits and shortcomings of the PPP project of DQ highway.At the end,this paper makes a comprehensive summary,and raises questions to be further studied and reasonable suggestions for the execution of subsequent works.