Research On The Factors Affecting The Participation Of Private Enterprises In PPP Projects

The PPP project financing model has been welcomed by all countries in the world because it has a high operational efficiency and can attract social capital to participate in infrastructure construction and ease government financial pressure.At present,our country is faced with huge financial pressure.PPP model,as a financing model,not only solves the problem of insufficient investment funds of local governments,but also satisfies the principle of "professional affairs are handed over to professional people".Since 2013,the central government has vigorously implemented PPP projects,and the State Council and relevant ministries and commissions have issued a series of rules and regulations on PPP projects,in an attempt to steadily advance PPP projects throughout the country and create a sound institutional environment.However,the progress of PPP project in our country is not smooth,and the participation rate of PPP project of private enterprises is too low,which partly contradicts the original intention of the state to vigorously implement PPP project.In the policy environment where the central government vigorously promotes private enterprises to participate in PPP projects and issues a series of policies to promote and standardize PPP projects,the participation rate of private enterprises is still less than half,which is an urgent problem for China to promote PPP projects.This paper systematically combs and analyzes the nature,characteristics,objectives and operating mechanism of PPP,and builds a key factor analysis system for the successful participation of private enterprises in PPP projects based on the document requirements of local governments and private enterprises on PPP consultation.And further analysis of the key factors affecting the participation of private enterprises in PPP project mechanism.The key factor analysis system for successful participation of private enterprises in PPP projects includes three levels: environment,local government and private enterprises.Environmental factors include legal policy,economic,technical and social environmental factors.Government factors include the spirit of the contract,attitude towards the people's enterprises and other factors.Enterprise strength includes factors such as corporate strategy,financing channels,financial strength,technology and social reputation.On the basis of theoretical analysis,we selected the leading enterprise,Dongfang Garden,which is a typical application of PPP model,and analyzed the major project in the process of its business transformation--Beijing Liulhe Wetland Park.The reasons for the successful participation of Oriental gardens in this project are analyzed,which provides inspiration for other private enterprises to participate in PPP projects.Through theoretical analysis and case study,the conclusion is obtained that the factors that influence private enterprises to participate in PPP projects are mainly reflected in private enterprises themselves.First of all,the concept of enterprise conforms to the orientation of national industrial policy and is the premise for private enterprises to successfully participate in PPP projects.The private enterprises that actively explore the issue of ecological restoration and the concept of enterprises in line with the National concept of promoting ecological civilization have the inherent advantage of participating in PPP projects.Second,financing channels and financial capabilities have a direct impact on the participation of private enterprises in PPP projects.Private enterprises with strong capital and abundant funds,good relations between silver companies,high credit quotas,solvency,profitability,and growth leading industries meet the inherent requirements of PPP projects that require companies to pay huge sums of money.Third,the core technology of private enterprises has an important influence on participating in PPP projects.These technologies are the inherent needs of national ecological civilization construction.Private enterprises with advanced ecological restoration technology,diversified water treatment technology and advanced waste disposal technology are more likely to participate in PPP projects.Fourth,the ability to control the wind is a key factor for private enterprises to participate in PPP projects.The professional financial team lays the talent foundation for the transition to PPP project,which makes private enterprises have good wind control ability in PPP operation.Fifth,a good social reputation can attract the attention of local governments.By improving the social reputation through landmark projects and social welfare,private enterprises can be promoted to participate in PPP projects.As participants and regulators in PPP projects,the attitude of local governments towards private enterprises and their contractual spirit are also related to the successful participation of private enterprises in PPP projects.In addition,external environmental factors seriously affect the enthusiasm of private enterprises to participate in PPP projects,and the impact of the policy and legal environment and the economic environment is particularly important.More mature policy and legal environment,developed financial system,to increase the willingness of private enterprises to participate.