Abstract
The Public-Private Partnership (PPP) model is often referred to as a new effective way in funding issue solving for infrastructure development and management. A PPP model project involves numerous of stakeholders and the most typical and basic PPP model comprised of three actors: Government, the private sector and financial institutions. Based on the features of PPPs, the differences between PPP model and traditional financing methods are clearly demonstrated through the financing period; investment and financing subject; property ownership; financing credit basis; financing purposes; source of repayment; guarantee; and degree of financing risk.
 
 On the other hand, the selection of a suitable structure from the financial source is based on the choice of the best combination of equity and debt. In terms of project financing structure, it can be divided into three main sections: equity contributions, debt contributions and mezzanine/Subordinated contributions. Moreover, according to the characteristics of different PPPs, the financial structure of the project will be determined to optimize the financial benefits of the project. Furthermore, for each stage of the project, financial instruments will be used appropriately.
 
 This paper will deliver a summary and review of PPP projects, as well as the stakeholders involved in implementing a project under a basic PPP model. In addition, this paper will discuss the financial structure of a project, and the PPP project financial instruments that commonly used will also be clearly analyzed. Based on the in-depth knowledge of the PPP model, the paper will depend on the development situation of the PPP model in some countries, especially China, to provide visual examples of each financial instrument.
Highlights
The Public-Private Partnership (PPP) model is often referred to as a new effective way in funding issue solving for infrastructure development and management
A PPP model project involves numerous of stakeholders and it is understood as a complex network of multi-stakeholder relationships and their formal relationships are defined by contracts
PPP model Often more than 10 years Diversity Project company (SPV) No prosecution right or limited prosecution right Except a few of property are formed from the capital of the project that the project company has the right to prosecute, financing credit basis can only be referenced by credit profile of government and private sector, economic value, asset evaluation and future earnings of PPPs
Summary
The Public-Private Partnership (PPP) model is often referred to as a new effective way in funding issue solving for infrastructure development and management. Since the 1990s, government sectors were keen to seize opportunities for the private sector to participate in supporting the development of related infrastructure and public services within the PPPs framework (Richard, 2008). In 1992, the first Foreign Portfolio Investment (FPI) was proposed, encouraging the private sector and the public sector to establish cooperation to form a joint venture. Based on identifying non-governmental objects as "social capital" instead of "private capital" as pioneers, the Chinese government has opened up opportunities for state-owned enterprises to participate in the PPP project. Shajiao B power plant in Shenzhen is a BOT project that came into operation in 1988, and has been known as the first PPP model in China. From the year 1990 to the end of Q3 2017, the number of infrastructure projects that are under construction or operating in whole of China reached to 1414 projects, of which the underground rate is 35.2% (Note 2), and total investment at US$ 16.8 million (Note 3)
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