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PPP (public private partnership), also known as PPP mode, namely the cooperation between government and social capital, is a project operation mode in public infrastructure. In this mode, private enterprises and private capital are encouraged to cooperate with the government to participate in the construction of public infrastructure
First, PPP is a new project financing mode. PPP financing is a kind of financing activity with the project as the main body, which is a kind of realization form of project financing. It is mainly arranged according to the expected income, assets of the project and the strength of government support, rather than the credit of the project investor or sponsor. The direct income of the project operation and the benefit transformed by the government support are the source of funds to repay the loan. The assets of the project company and the limited commitment given by the government are the security guarantee of the loan Secondly, PPP financing mode can make more private capital participate in the project to improve efficiency and rece risk. This is what the current project financing model encourages. The government's public sector and private enterprises cooperate in the whole process on the basis of concession agreement, and both parties are jointly responsible for the whole operation cycle of the project. The operation rules of PPP financing mode enable private enterprises to participate in the confirmation, design and feasibility study of urban rail transit project, which not only reces the investment risk of private enterprises, but also introces the management methods and technologies of private enterprises into the project, and effectively controls the construction and operation of the project, Thus, it is concive to rece the risk of project construction investment and better protect the interests of the state and private enterprises. It has positive practical significance to shorten the project construction cycle, rece the project operation cost and even the asset liability ratio Thirdly, PPP mode can ensure that private capital is "profitable" to a certain extent. The investment goal of the private sector is to seek projects that can repay loans and have investment returns. Unprofitable infrastructure projects cannot attract private capital. In PPP mode, the government can give private investors corresponding policy support as compensation, such as tax preference, loan guarantee, giving private enterprises the priority of land development along the line, etc. Through the implementation of these policies, the enthusiasm of private capital to invest in urban rail transit projects can be improved Fourthly, PPP mode can improve the service quality of urban rail transit on the premise of recing the government's initial construction investment burden and risk. Under the PPP mode, the public sector and private enterprises participate in the construction and operation of urban rail transit, and the private enterprise is responsible for the project financing, which may increase the capital amount of the project, and then rece the asset liability ratio. This can not only save the government's investment, but also transfer part of the project risk to the private enterprise, so as to rece the government's risk. At the same time, the two sides can form a long-term goal of mutual benefit and better serve the society and the publicPPP work center answers for you. Please accept if you are satisfied
it should be clear that in PPP, the public sector and the private sector do not simply share profits, but also need to control the possible high profits of the private sector, that is, the private sector is not allowed to form excess profits in the process of project implementation. The main reason is that any PPP project is a public welfare project, not for the purpose of profit maximization. If both sides want to share the profits, it is actually very easy. As long as the price is allowed to increase, the profits can be greatly increased. However, doing so will inevitably lead to public dissatisfaction and even social chaos. Since it is not possible to share profits with the private sector in form, how can it share profits with the private sector in practice? Here, benefit sharing refers to not only sharing the social achievements of PPP, but also making the private sector, private enterprises or institutions as participants obtain relatively peaceful and long-term stable return on investment. Benefit sharing is obviously one of the foundations of partnership. If there is no benefit sharing, there will be no sustainable PPP partnership
risk sharing
as a PPP mechanism compatible with the rules of market economy, partnership has corresponding interests and risks, and risk sharing is another foundation of partnership besides interest sharing. Without risk sharing, it is impossible to form a healthy and sustainable partnership. No matter market economy or planned economy, no matter private sector or public sector, no matter indivial or enterprise, no one will like risk. Even the most adventurous adventurers, in fact, do not like risk, but will do everything possible to avoid risk for the sake of interests
in PPP, the reasonable risk sharing between the public sector and the private sector is a significant sign that it is different from other forms of transaction between the public sector and the private sector. For example, the process of government procurement can not be called a public-private partnership because both parties make themselves bear as little risk as possible. In public private partnership (PPP), however, the public sector should take the associated risks of its own advantages as much as possible, while the other party should take as little risk as possible. An obvious example is that in the operation of tunnel, bridge and trunk road construction projects, if the private sector fails to achieve the basic expected income e to insufficient traffic flow in general time, the public sector can provide cash flow subsidies to it. This practice can effectively control the business risks caused by insufficient traffic flow in the private sector under the "sharing" framework. At the same time, the private sector will undertake more or even all the specific management responsibilities according to its comparative advantages, and this field is the prone area of "bureaucratic inefficiency risk" of government management. Thus, the risk can be avoided
if every kind of risk can be borne by the partner who is the best at dealing with the risk, there is no doubt that the cost of the whole infrastructure construction project can be minimized. In the PPP management mode, it is more necessary to break through the simplified understanding of "financing mode" and rise to the understanding and summary from the level of management mode innovation. These two entry points are the best
PPP work center answers for you. Please accept if you are satisfied
Project implementation organization refers to the organization designated by the government, which represents the government and chooses the social capital to cooperate with the government
the project implementation agency should prepare prequalification documents according to the needs of the project, issue prequalification announcement, invite social capital and its cooperative financial institutions to participate in prequalification, verify whether the project can obtain social capital response and achieve full competition, and submit the prequalification evaluation report to the financial department (government and social capital cooperation center) for record
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advantages of PPP mode project:
(1) eliminate the cost overrun. At the initial stage, the public sector and private enterprises, together with the government, participate in the project identification, feasibility study, facilities and financing, which ensures the technical and economic feasibility of the project, shortens the preliminary work cycle and reces the project cost
(2) it is concive to the transformation of government functions and the rection of financial burden. The government can get rid of the heavy business, from the provider of infrastructure public services in the past to a regulatory role, so as to ensure the quality and rece the pressure on the government in terms of budget (3) it promotes the diversification of investors. Using the private sector to provide assets and services can provide more funds and skills for government departments, and promote the reform of investment and financing system. At the same time, private sector participation in projects can promote innovation in project design, construction and facility management process, improve work efficiency, and disseminate best management concepts and experiencesreference source: Network PPP mode
note: if more than three social capital companies have passed the prequalification, the project implementation agency can continue to prepare the procurement documents; If there are less than three social capital projects that have passed the prequalification, the project implementation agency shall reorganize the prequalification after the implementation plan is adjusted; If the social capital of the project is still less than 3 after re qualification, the procurement mode of the implementation plan can be adjusted according to law.
Heilongjiang PPP project consulting and research center answers for you
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PPP (public private partnership), also known as PPP mode, refers to the cooperation between government and social capital, which is a project operation mode in public infrastructure. In this mode, private enterprises and private capital are encouraged to cooperate with the government to participate in the construction of public infrastructure< The PPP research center of China University of political science and law, as the first scientific research institution relying on professional political science and law colleges in China, will make full use of the legal expert resources and academic research height of the university to put forward suggestions and paths for solving the legal problems in the actual operation of PPP projects, and cultivate the legal awareness and habits of all parties involved in PPP projects, In PPP projects, we should strengthen law enforcement, ensure the quality of PPP projects and rece the risk of PPP projects
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