What is the substantive difference between PPP model and traditional government financing model?

PPP(Public-Private-Partnership) is a public-private partnership model, which is a project financing model in public infrastructure. Under this model, private enterprises and private capital are encouraged to cooperate with the government and participate in public infrastructure construction.

According to this broad concept, PPP refers to allowing resources held by the non-public sector to participate in the provision of public goods and services in the process of cooperation between the public sector and the private sector, so as to obtain more favorable results than when the partners act alone.

Compared with BOT, the main feature of narrow sense PPP is that the government is more involved in the construction, management and operation process in the middle and late stage of the project, and enterprises are more involved in the scientific research and project establishment in the early stage of the project. Both the government and enterprises participate in the whole process, and the cooperation time between the two sides is longer and the information is more symmetrical.

PPP is the abbreviation of public-private-partnership, which means that in the field of public * * * services, the government selects social capital with investment and operation management capabilities in a competitive way, and both parties enter into a contract according to the principle of equal consultation, and social capital provides public * * * services, and the government pays consideration to social capital according to the performance evaluation results of public * * * services.

PPP provides services in the form of market competition, mainly focusing on pure public and quasi-public fields. PPP is not only a means of financing, but also a system reform, involving administrative system reform, financial system reform and investment and financing system reform.