Private Investment Participates In The Research Of PPP Project Financing Mode In Underdeveloped Areas

This paper discusses the private capital participation in the financing model of PPP projects in underdeveloped regions in the context of poverty alleviation.For the construction of public infrastructure in economically underdeveloped areas,due to the small local fiscal revenue,only the government department and the private sector cooperate to set up a project company to cooperate in project financing.By comparing the traditional project financing and PPP financing model,this paper concludes that the underdeveloped areas face a large gap in the construction of public infrastructure projects,and need more diversified financing channels,and their public infrastructure projects are mostly strategic national projects.The income is low,it is difficult to attract the investment of private capital for profit,and the appropriate subsidies for the construction period and operation period can attract private capital investment,thus achieving a balance between social and economic benefits.Therefore,this paper further studies the financial subsidy mechanism of PPP projects in underdeveloped regions.Based on the risk preference between the government and the social investor,this paper constructs the Stackelberg game decision-making model and considers the financial subsidy mechanism of the PPP project from the perspectives of social benefits(centralize d decision-making)and project benefits(decentralized decision-making).The optimal compensation plan for developing PPP projects in poverty-stricken areas is obtained.The results of the study indicate that the Stackelberg game decision model considering the government and private investment risk preferences of PPP projects in underdeveloped regions achieves the optimal solution under centralized decision-making,achieving the balance between project social benefits and self-revenue.Finally,the case of “XXX Water Supply Project” was introduced to further reveal the financing model and financial replenishment mechanism of PPP projects in underdeveloped regions.The results of this paper can first promote the construction of infrastructure in underdevelope d areas and achieve rapid poverty alleviation.Secondly,it will help the government to provide some suggestions for the design of financial subsidies for the development of PPP projects in underdeveloped regions,and it can serve the government in underdeveloped regions.It provides an important theoretical basis for the management of PPP projects.