Why vigorously promote the use of PPP model

PPP (Public-Private-Partemership), that is, the public **** sector and private enterprise cooperation mode refers to the government, for-profit enterprises and non-profit enterprises or organizations based on a project and the formation of a form of mutual cooperation relationship, is a project financing mode of public **** infrastructure. In this mode, the government, for-profit enterprises and non-profit enterprises or organizations to form a multi-win cooperation mode, so as to maximize the total return, to achieve the Pareto optimal, that is, the maximum social benefits, which is more in line with the purpose of the public **** infrastructure construction.

In the process of project implementation, the government leads the selection of the project company and the establishment of the project, participate in the establishment of the project company, preside over the bidding, and enterprise cooperation *** with the completion of the project financing, and the construction of the project, operation and management of the project mainly to play a supervisory role, and finally receive the project, the project transfer. With the traditional infrastructure model of government functions and roles than the PPP model of government functions and roles have the following characteristics: first, from the source of funds, the traditional model mainly relies on financial expenditure, while the PPP model to absorb social funds; second, from the degree of risk sharing, the traditional model bears almost all the risks, while the PPP model to share some of the risks; once again, from the point of view of the benefits, the traditional model Thirdly, from the point of view of benefits, the traditional model has no or only a small amount of benefits, while the PPP model or project facilities; finally, from the point of view of the role played, the traditional model of the government as a decision-maker and investor, while the PPP model as a collaborator and supervisor of the role. As can be seen, the PPP model, the realization of the role of the government from the decision makers and investors to the collaborators and supervisors of the change, expanding the source of project funding, improve operational efficiency, and ultimately play a role in speeding up the construction of infrastructure.