Research On Investment Decision Of PPP Project Considering Government-Paid Reward Mechanism

PPP mode is not only one of the financing methods to solve the shortage of government funds,but also an innovation of the governance mode of market,society and government.By introducing private sector,both parties share the risks and benefits of the project according to their respective superiorities and characteristics,which can not only alleviate the pressure of government funds,but also improve the efficiency of resource development,furthermore,create a market for enterprises,achieve multi-win-win situations,and eventually the goal of reducing the total construction cost and improving social benefits is achieved.This kind of mode adopts market competition,professional cooperation,transparency and openness,reasonably plans multiple resources,comprehensively improves the quality of public services,as well as constantly realizes the people’s yearning for a better life.Based on the value for money evaluation of PPP projects,this paper attempts to design a research method of investment decision-making of government-paid PPP projects with stochastic performance-based payment coefficient.On this basis,it carries out financial evaluation,lists the corresponding values under all kinds of schemes,so as to selects the most appropriate scheme for further implementation.This paper analyzes the investment decision-making of PPP projects considering the government-paid reward mechanism from the standpoint of private sector.Firstly,this paper introduces the research background,research status,research approaches and other introduction contents of the paper,as well as explores relevant knowledge of PPP mode,government-paid reward mechanism,financial evaluation indicators and methods of investment decision-making,and value for money evaluation.Secondly,it is the preliminary work to carry out the research on the investment decision-making of private sector,that is,the government evaluates the value for money of PPP projects.Moreover,the investment decision-making model of government-paid PPP project is constructed,and the specific calculation process of financial evaluation index is also constructed.Finally,according to the constructed model,the specific PPP project case is calculated in the light of the given relevant data,and the stochastic number is designed for the performance-based payment coefficient during the operation period.Then the cash inflow of the project is changed,different NPV and IRR values are obtained,and fifty groups of sample data are calculated under the five pre-set schemes,and their mean values are calculated respectively.The results show that if the selected scheme is the full performance-based payment of scheme one,all the financial evaluation indexes are not satisfactory,as well as the interests of private sector will suffer great losses,which will also attack the enthusiasm of private sector.If the proportion of performance-based payment is smaller,the income of private sector can be fully guaranteed.According to the data and calculation methods of the above schemes,private sector can calculate whether it can accept the project or not when it comes to various performance-based payment proportion schemes,so as to ensure its own vital interests.This paper provides a feasible investment decision-making method for private sector to invest in government-paid PPP projects.