International Experiences for Public Engineering Project PPP Finance Mode: Inspiration to Public Engineering Project Finance in China

Abstract

Under the cooperation of public sector and private sector, public engineering project PPP finance mode can use abundant technology and management experience for private sector. It can support long term stable investment channel for private sector. At the same time, it can decrease finance pressure for government sector and can realize the winning for both public sector and private sector. PPP mode can flexibly adopt many different types according to detailed conditions for public engineering project, among which franchise BOT is typical running style. Many countries have accumulated abundant public engineering project finance, construction, operation and management experiences for PPP mode. China should study PPP mode operation experiences for public engineering project accumulated long term by other countries, and should improve PPP mode operation process according to China’s specific conditions. When public engineering project uses PPP mode, rational investment compensation, transfer and exit mechanism should be designed to attract private sector, and law, policy, operation management institutions, contract management and risk duty mechanism should be enhanced.