Case Study Of The PPP Financing Mode Of Changchun Comprehensive Pension Project

With the growing demand for the construction of the pension service industry,local governments can no longer rely solely on borrowing to meet their funding needs.The pension service industry belongs to the public sector,with a profit of welfare and meager profit.The financing of its construction funds and operating capital is relatively difficult.In recent years,both at home and abroad have been promoting the construction and operation of the pension service industry,that is,the PPP financing model,through the cooperation between government and enterprises.Using the PPP financing model in the pension service industry can achieve the mutually beneficial effect of the government,social capital and the elderly group.On the one hand,this model can alleviate the government's fiscal pressure,improve the efficiency of the use of public financial capital,and increase the return of social capital.On the other hand,it is beneficial to stimulate the power of social capital,increase the supply of old-age facilities,and meet the needs of the elderly with high-quality and multi-level old-age services.The Changchun Comprehensive Pension Project has solved the financing dilemma by using the PPP financing model,and was rated as a national PPP demonstration project,which is a successful practice of the PPP financing model for the pension service industry.Therefore,this article selects the Changchun Comprehensive Pension Project as a case to make an in-depth study on its use of PPP financing model.It can provide a reference for China's pension service industry to use PPP financing model.Firstly,this article summarizes the current financing model of China's pension service industry and analyzes its existing problems:(1)excessive reliance on government funds but limited government financial resources;(2)single financing channels;(3)insufficient participation of social capital;(4)The high-financing risk of the pension service industry.This puts forward the PPP financing model.Secondly,this article introduces Changchun Comprehensive Pension Project from the aspects of project background,project basic situation,project operation mode,and project transaction structure design.Then it analyzes the implementation process of Changchun Comprehensive Pension Project using PPP financing model,draws the reasons for the success of this case financing,summarizes the advantages of the PPP financing model participating in Changchun Comprehensive Pension Project,and conducts benefit analysis and risk analysis of the project.Finally,draw conclusionsbased on the above analysis,and obtain the following enlightenment: first,change government's functions to take full advantages of social capital;second,standardized selection partners to reduce rent-seeking behavior;third,improve the pricing mechanism in order to protect the interests of social capital and the public;fourth,establish an effective risk-sharing mechanism to reasonably distribute risks;fifth,build a reasonable financing structure to reduce financing risks.