English name of ppp mode: public-private-partnership; It means that the government and private organizations, in order to cooperate in the construction of urban infrastructure projects, or to provide some public goods and services, form a cooperative partnership with each other on the basis of franchise agreements, and define the rights and obligations of both parties through signing contracts to ensure the smooth completion of cooperation, and finally make the cooperative parties achieve more favorable results than expected through individual actions.

1, a necessary condition for the development of ppp mode

(1) government support

Strong support from government departments. In the PPP model, the roles and responsibilities of public and private partners will vary from project to project, but the overall role and responsibility of the government (providing the best public facilities and services) will remain unchanged. PPP mode is an effective way to provide public facilities or services, but it cannot replace effective government governance and decision-making. In any case, from the standpoint of protecting and promoting public interests, the government should be responsible for the overall planning of the project, organize bidding, straighten out the authority and relationship between participating institutions, and reduce the overall risk of the project.

(2) Improve the law

Sound laws and regulations. The operation of PPP project needs to clearly define the responsibilities, obligations and risks that government departments and enterprise departments need to bear in the project at the legal level to protect the interests of both parties. Under the PPP mode, all stages of project design, financing, operation, management and maintenance can adopt the mode of public-private cooperation, and effectively restrain both parties through perfect laws and regulations, which is a powerful guarantee to maximize the advantages and make up for the shortcomings.

(3) Professionals

Support from professional organizations and talents. The operation of PPP mode widely adopts the way of project franchising for structural financing, which requires complex legal, financial and financial knowledge. On the one hand, policy-making participants are required to formulate standardized and standardized PPP transaction processes to provide technical guidance and relevant policy support for project operation; On the other hand, specialized intermediaries are needed to provide specific and specialized services.

2. Development mode of 2.ppp mode

The typical structure of PPP mode is: government departments or local governments sign franchise contracts with special purpose companies composed of the winning bidders through government procurement (special purpose companies are generally joint-stock companies composed of the winning construction companies, service management companies or third parties investing in projects), and special purpose companies are responsible for financing, construction and operation. Governments usually reach direct agreements with financial institutions that provide loans. This agreement is not an agreement to guarantee the project, but an agreement to promise the lending institution to pay the relevant fees according to the contract signed with the special purpose company. The agreement enables special purpose companies to obtain loans from financial institutions more smoothly. The essence of adopting this financing form is that the government gives private companies long-term franchise rights and income rights in exchange for the accelerated construction and effective operation of infrastructure.