Research On Improvement Of Return Mechanism Of Chongzuo Forestry Industrial Park PPP Project

Since the reform and opening up,with the sustained and rapid development of China’s economy,social capital has begun to enter the field of infrastructure investment,and the PPP model has gradually become well known to the public.Government construction projects usually have excessive financial burdens,low management efficiency,and slow technological upgrades,and the participation of social capital can effectively make up for these deficiencies,and can greatly improve the efficiency of government use of social resources.However,the PPP project has large investment scale,high construction risk,and long operation cycle,so the enthusiasm of social capital participation is generally not high.This paper makes a case study on how to scientifically and reasonably design the return mechanism of Chongzuo Forestry Industrial Park PPP project to make all parties involved in the PPP project profitable,which has important theoretical and practical significance.Under the guidance of public management theory,public goods theory,project differentiation theory and stakeholder theory,this paper puts forward the design principles of PPP project return mechanism,the main factors that should be considered,the return index and the calculation method of feasibility gap subsidy.Based on the analysis of the return mechanism of Chongzuo Forestry Industrial Park PPP project,it is found that there are some problems,such as the government’s illegal commitment to guarantee the bottom income,the incomplete design of the feasibility gap subsidy formula,the low financial internal rate of return and so on,which increase the hidden debt of the government,increase the pressure of financial expenditure,and depress the investment return of social capital,making the project financing difficult and lagging behind.The main reason is that interest concerns have lowered the bargaining power of social capital,the way in which two bids are merged into one has brought profit temptation to social capital,and PPP consulting institutions are not professional enough.In this regard,this paper sets a relatively scientific financial benchmark internal rate of return firstly,calculates the feasibility gap subsidy according to the three methods of Caijin [2015] No.21 formula,equal principal formula and equal principal and interest formula.After comprehensively considering various factors such as the feasibility gap subsidy,the capital’s post-tax financial internal rate of return,and the net present value,a preliminary improvement plan was selected,and a final plan was determined through the fiscal capacity demonstration.Compared with the original return mechanism,the improved plan is more in line with the spirit of PPP and helps to achieve win-win situation for both public and private parties.The important enlightenment of the case of Chongzuo Forestry Industrial Park PPP project is that the design of the return mechanism of the PPP project should scientifically set the financial internal rate of return,reasonably design the excess income distribution mechanism and performance appraisal mechanism,improve the quality of China’s system construction,establish and improve the legal system of PPP,strengthen the credit construction of local governments,and accelerate the training of PPP professionals,so as to ensure that social capital is "profitable but not profiteering".