Professor Zhang Haiyun from w88 casino is a guest on CCTV English Channel
Analysis on government and social capital cooperation projects (PPP）
w88 casino News (provided by the w88 casino of Finance)Professor Zhang Haiyun from the w88 casino of Finance of w88 casino was invited by CCTV English Channel to start at 20:15 on the evening of May 30, 2015 "China 24”（China24hour) comments on government-social capital cooperation projects (PPP）。
Since April this year, the government has promoted social capital cooperation (PPP) The intensity and speed of the project have increased significantly. On May 25, a special column was set up on the National Development and Reform Commission website for public releasePPPPromote projects and encourage all types of social capital to participate in construction and operation through franchising, government purchase of services, equity cooperation and other methods. This releasePPPThere are 1,043 projects in total, with a total investment of 1.97 trillion yuan.
Question 1:PPPHow does the model help resolve local government debt problems? How effective is it?
Professor Zhang Haiyun believes that in the past, local governments mainly relied on local government funds and large amounts of debt borrowed by local government platforms as sources of funds to develop public projects. Unlike this, inPPPIn the model, social investors play an important role in both funding and project operations. Some projects have already generated income, and social investors can obtain the right to obtain future income from the project through front-end payment, while local governments can obtain more cash to repay existing debts by monetizing future cash flow. Some projects need to be developed or upgraded. Social investors can provide funds for project construction and enjoy corresponding income during the operation stage after the project development or upgrade is completed. Under such an arrangement, local governments no longer need to provide funds, thus avoiding the pressure of increasing debt. In the above two cases,PPPAll can provide more time and space for local governments to control the further spread of debt problems. However, how effective it can be in reducing debt remains to be seen, because public projects are characterized by non-profit drives, which poses challenges to attracting private funds for profit.
Question 2: Currently the private domain is forPPPseems not to be as enthusiastic as local governments. What are the main obstacles? How to overcome these obstacles?
Professor Zhang Haiyun believes that public services generally need to meet the two requirements of low enough price and reliable enough quality at the same time, which often depresses their profit margins, making it difficult to attract investors from the private sector. Interestingly, inPPPIn many arrangements under the 16429_16571| model, private sector investors are not passive financial investors, but also play key roles in the management of project development and operations. This creates space for private investors to leverage their professional expertise and provides feasible ways to save costs, improve efficiency, and increase profit margins. If this benign mechanism can operate effectively, the profit space created by the improvement of the mechanism will be very attractive to private investors, and at the same timePPPThe significance of the model goes far beyond the scope of financing functions, and is further expanded to promote the improvement of productivity and the adjustment of economic structure, from point to point,PPPThe model is expected to become a new catalyst for my country's economic transformation and upgrading.
Attachment: Video link:
http://english.cntv.cn/2015/05/31/VIDE1433021642431207.shtml
