The Implication Of Ppp In Urban Rail Transit

Since the implication of reform and opening up policy,China has witnessed great progress in economic and social development.However,the acceleration of urbanization process brings negative influences to people's life,such as urban road traffic congestion and environment pollution.Urban rail transit has many disadvantages such as large transportation capacity,low environmental pollution,rapid running speed etc.Therefore,urban rail transit has become an important mean for large-scale cities to improve internal city environment.However,it takes a great deal of money to build urban rail transit.The traditional governmental financing cannot meet the fund need under its rapid development.As a new financing and management mode,PPP has been employed into the construction of urban rail transit in worldwide.PPP cannot only attract huge social capital to release financial burden on the government,optimize allocation of resources,but also improve service of urban rail transit.Although in China,PPP mode has attracted more and more attention from many fields,it has not been well practiced in the field of infrastructure,especially in the construction of urban rail transit.The construction of rail transit in J city has been in initial stage and exiting financing mode makes J city government bear heavy financial burden.In order to guarantee the smooth establishment of J rail transit project,it is very necessary to analyze and discuss the implication of PPP mode in rail transit construction of J city.On the basis of review of domestic and foreign literatures,basic principles of PPP mode in urban rail transit field have been studied and the importance of feasibility has been analyzed.Through the comparative analysis of PPP mode in London underground and Beijing Metro Line 4,the experiences and lessons has been summarized,providing suggestion in three aspects: partner selection,financing structure and contract fulfilling.Taking rail transit of J city as an example,the current financing status and exiting problems of rail transit has been analyzed and the concept of introducing industrial investment fund into PPP mode has been put forward.Accordingly,PPP mode design for Line M3 were proposed in aspects of operation mode,partner selection,operation mode of industrial investment fund,return on investment and risk sharing mechanism.The feasibility and difficulty of PPP mode design as well as countermeasure have been discussed,aiming to provide reference for the future construction and financial innovation of J urban rail transit.