What is ppp project?

What is a PPP project?

PPP (Public-Private Partnership), also known as the PPP model, is the cooperation between government and social capital. It is a project operation model in public infrastructure.

Under this model, private enterprises and private capital are encouraged to cooperate with governments and participate in the construction of public infrastructure. The engineering PPP model is an optimized project financing and implementation model that takes "win-win" or "multi-win" for all participants as the basic concept of cooperation. Its typical structure is: *** Department or local *** Passed* ** The form of procurement is to sign a franchise contract with a special purpose company established by the winning bidder (a special purpose company is generally a joint-stock company composed of a construction company, a service operating company, or a third party that invests in the project). The special purpose company The company is responsible for financing, construction and operations.

*** Usually a direct agreement is reached with the financial institution that provides the loan. This agreement is not an agreement to guarantee the project, but a commitment to the lending institution to pay according to the contract signed with the special purpose company. Agreement on fees, this agreement allows the special purpose company to obtain loans from financial institutions more smoothly. : PPP model characteristics First, PPP is a new type of project financing model.

PPP financing is a financing activity with the project as the main body. It is a form of project financing. It is mainly based on the expected income, assets and *** support of the project rather than the project investors or sponsors. credit to arrange financing. The direct income from project operations and the benefits transformed through *** support are the source of funds to repay the loan. The assets of the project company and the limited commitment given by *** are the security guarantee of the loan.

Second, the PPP financing model can enable more private capital to participate in projects to improve efficiency and reduce risks. This is exactly what the current project financing model encourages.

***'s public *** departments and private enterprises cooperate throughout the entire process on the basis of concession agreements, and both parties are jointly responsible for the entire cycle of project operation. The operating rules of the PPP financing model enable private enterprises to participate in preliminary work such as the confirmation, design and feasibility study of urban rail transit projects. This not only reduces the investment risks of private enterprises, but also integrates the management methods and technologies of private enterprises. Introducing it into the project can also effectively control the construction and operation of the project, which will help reduce the risks of project construction investment and better protect the interests of the state and private enterprises.

This has practical significance that is worthy of recognition for shortening the project construction cycle, reducing project operation costs and even the asset-liability ratio. Third, the PPP model can ensure that private capital is "profitable" to a certain extent.

The investment goal of the private sector is to seek projects that can both repay loans and provide a return on investment. Unprofitable infrastructure projects will not attract private capital investment. By adopting the PPP model, *** can provide private investors with corresponding policy support as compensation, such as tax incentives, loan guarantees, and priority land development rights for private enterprises along the route.

The implementation of these policies can increase the enthusiasm of private capital to invest in urban rail transit projects. Fourth, the PPP model improves the quality of urban rail transit services while reducing the burden and risks of initial construction investment.

Under the PPP model, the public sector and private enterprises jointly participate in the construction and operation of urban rail transit, and the private enterprises are responsible for project financing, which may increase the capital amount of the project and thereby Lowering the asset-liability ratio will not only save the government's investment, but also transfer part of the project risks to private enterprises, thereby mitigating the company's risks. At the same time, both parties can form mutually beneficial long-term goals and better serve society and the public.

Reference: PPP-*** and social capital cooperation.

What does PPP project mean?

It refers to a partnership-type cooperative relationship between *** and private organizations based on a concession agreement in order to provide certain public *** goods and services, and By signing a contract, the rights and obligations of both parties are clarified to ensure the smooth completion of the cooperation project.

The PPP project is a marriage between *** and social capital. In the PPP projects going abroad, our Chinese company, as social capital from outside the host country, ensures that we can enjoy a harmonious and stable marriage in the project cycle of the next few decades, and ensure a more proactive approach when a crisis occurs. The status should be laid during the love period (in terms of legal, contract and investment structure design in the early stage of the project).

Extended information: PPP is the abbreviation of "Public-Private Partnership" in English, and the Chinese literal translation is "Public-Private Partnership". In short, it refers to the public sector providing public services through establishing partnerships with the private sector. **A product or service.

Although the private sector has a long history of participating in the provision of public products or services, the term PPP only emerged in the past ten years. Before that, the terms widely used were Concession, BOT, PFI, etc.

PPP itself is a very broad concept. Coupled with differences in ideologies, it is very difficult for countries around the world to reach a complete understanding of the exact connotation of PPP. German scholar Norbert Portz even believes that it is almost meaningless to try to summarize what PPP is or should be. It has no fixed definition, and it is also difficult to verify the origin of this ambiguous English word. The exact meaning of PPP depends on different cases. to make sure.

Reference source: Baidu Encyclopedia - PPP project.

What kind of project is PPP? Is it true?

The PPP model refers to *** in order to enhance the company's ability to supply products and services and improve supply efficiency, through franchising, purchase of services, equity cooperation, etc., to invest in the construction of the original *** Various public *** service infrastructure projects of *** will no longer be implemented by *** alone, but will be implemented jointly by *** and social capital parties. *** will play the role of supervision and management, and the social capital parties will undertake project construction or Operation after completion.

For example: A certain county wants to build a garbage incineration station. It was originally financed by financial investment. Now it adopts the PPP model. Companies interested in the project can negotiate with ***. After going through the PPP project operation process, The project is handed over to the enterprise for implementation. After the project is completed, *** can give the company a franchise right and allow the company to operate the waste incineration station during the cooperation period. After the cooperation period is reached, the company will hand over the waste incineration station to ***.

The first advantage of this is that it can expand the investment field, so that the public facilities area that was originally dominated by *** can be invested and participated by enterprises, expanding the investment scope of enterprises. The second is to reduce financial pressure. Many public facilities are in urgent need of construction, but financial funds may not be sufficient. At this time, attracting social capital to come in for construction can effectively alleviate financial pressure. The third is to promote the transformation of *** functions. *** has changed from a construction party in the past to a supervision and management party, which can free up more time and energy to do management and service work.

What is a PPP project in engineering construction?

With the in-depth development of the Belt and Road strategy, a large number of Chinese energy and infrastructure companies have explored and carried out "going out" to participate in overseas PPP projects.

In the Public-Private-Partnership project, the identity of a Chinese company (whether it is a state-owned enterprise or a private enterprise) is the second "P". That is, "Private" investors from outside the host country sign a decades-long project agreement with the first "P" (the host country *** or a state-owned company representing ***) to build, finance, operate and maintain important projects in the host country. of infrastructure and energy project assets.

The PPP project is a marriage between *** and social capital. In the PPP projects going abroad, our Chinese company, as social capital from outside the host country, ensures that we can enjoy a harmonious and stable marriage in the project cycle of the next few decades, and ensure a more proactive approach when a crisis occurs. The status should be laid during the love period (in terms of legal, contract and investment structure design in the early stage of the project).

Extended information: The PPP model is essentially a whole-process cooperative relationship established by *** in cooperation with social capital to provide public *** products or services, based on the granting of franchise rights, etc. Characterized by benefit sharing and risk sharing, by introducing market competition and incentive and restraint mechanisms, the advantages of both parties are brought into play to provide the quality and supply efficiency of public products or services. That is to establish a model of "profit sharing, risk sharing, and full cooperation" between governments and enterprises, forming a benign interactive pattern of "government supervision, business operations, and social evaluation."

The core of the PPP model is to introduce market mechanisms in the field of public services. Therefore, it is not only a simple financing method, but also a mechanism and system design. Promoting the PPP model for the construction and operation of urban infrastructure can introduce moderate market competition into the field of urban infrastructure. While realizing social welfare and improving the quality of infrastructure services, it can also bring reasonable investment returns to enterprises, and can also enhance The efficiency and capability of sustainable operation of public infrastructure.

Reference material: Baidu Encyclopedia-PPP project.

What is a PPP model project?

The PPP model is the abbreviation of Public-Private-Partnership. It refers to the cooperative construction of urban infrastructure projects between *** and private organizations. Or in order to provide certain public goods and services, based on the concession agreement, a partnership-type cooperation relationship is formed between each other, and the rights and obligations of both parties are clarified by signing a contract to ensure smooth cooperation. Completed, ultimately enabling all parties to cooperate to achieve a more favorable outcome than expected by acting alone.

1. The public-private partnership model (PPP) has attracted widespread attention at home and abroad for its characteristic of full participation in the entire operation process. The PPP model transfers some of the responsibilities to social entities (enterprises) in the form of franchise rights, and establishes an entity of "interest sharing, risk sharing, and full cooperation" with social entities. relationship, the financial burden on the government is reduced, and the investment risks of social entities are reduced. The PPP model is more suitable for waste treatment with strong public welfare or a certain link in it, such as hazardous waste treatment and domestic waste incineration and landfill disposal. This model requires reasonable selection of cooperation projects and consideration of the form, procedures, channels, scope and degree of *** participation. This is a troubling issue worthy of discussion.

2. PPP can be divided into three categories: outsourcing, franchising and privatization:

(1) Outsourcing type

PPP projects are generally managed by** * Investment, the private sector contracts one or several functions in the entire project, for example, it is only responsible for engineering construction, or is entrusted by *** to manage and maintain facilities or provide some public services, and realizes it through *** payment income. In outsourced PPP projects, the risks borne by the private sector are relatively small.

(2) Franchise type

Projects require private participation in part or all of the investment, and share project risks and projects with public authorities through a certain cooperation mechanism income. Depending on the actual income of the project, the public sector may charge a certain franchise fee or provide certain compensation to the franchise company. This requires the public sector to coordinate the profits of the private sector and the public welfare of the project. Therefore, the success of franchise projects depends to a large extent on the management level of relevant departments. By establishing an effective supervision mechanism, franchise projects can give full play to the respective advantages of both parties, save the construction and operating costs of the entire project, and at the same time improve the quality of public services. The assets of the project are ultimately retained by the public sector, so there is generally a transfer process of use rights and ownership, that is, after the contract ends, the private sector is required to transfer the use rights or ownership of the project to the public sector.

(3) Privatization type

PPP projects require the private sector to be responsible for all investment in the project. Under the supervision of the government, profits are realized by recovering the investment from users. Since the ownership of privatized PPP projects is permanently owned by private individuals and does not have limited recourse, the private sector bears the greatest risk in this type of PPP projects.

3. Successful cases of PPP financing model

(1) The 82 stadiums owned by the four most famous professional league clubs in the United States (MLB, NBA, NFL, NHL) 31% were built using the PPP model;

(2) The London Underground adopts the PPP financing model;

(3) The British country was the first to apply the PPP model. As of the end of 2006, 794 PPP agreements have been signed, with a total investment of 55 billion pounds;

(4) In Brazil from 2004 to 2007, 23 public sector projects became the first batch of bidding projects, with a total investment of approximately A total of US$6.534 billion;

(5) Chile has completed more than 36 projects by 2009, with an investment of US$6 billion.

What does PPP project mean?

The so-called PPP model, Public-Private-Partnership, PPP for short, also known as the public-private partnership model, is the basis of government and social capital. A long-term cooperative relationship established in the field of facilities and public services.

Take the lighting PPP project as an example. This is a lighting project for urban municipal lighting facilities. *** cooperates with social capital to achieve smart city lighting through integrated energy efficiency upgrades and is responsible for operations for a certain number of years. A new model to achieve the ultimate win is the smart city lighting PPP cooperation operation model. In the smart city lighting PPP cooperation operation model based on SECOING's high-voltage HID xenon street lamp smart lighting system as the carrier, the operation management company performs daily operation and maintenance of existing municipal lighting facilities in the contracted area and carries out smart city lighting upgrades Transformation, gradually replace the original municipal lighting infrastructure (light sources, electrical appliances, lamps, light poles, transformers, cables and distribution boxes, etc.), thereby achieving an overall improvement in the overall municipal lighting effect within the jurisdiction and realizing smart urban lighting. Management, and ensure the stable operation of the overall municipal road lighting facilities, and the road lighting effects meet the requirements of the "Urban Road Lighting Design Standards".

*** Transfer the company's lighting resource franchise rights, supervise and purchase lighting services; invest in social capital and use the operation and management company as the main body to carry out integrated system upgrades and long-term operations and compliance Supervision, scientific management, and responsibility for profits and losses.

What is a PPP project?

One of the hottest terms in 2014, PPP (Public-Private Partnership, PPP), refers to the cooperation between *** and private organizations. To build urban infrastructure projects, or to provide certain public goods and services, a partnership agreement is formed based on the concession agreement, and the rights and obligations of both parties are clarified by signing a contract. , to ensure the smooth completion of cooperation and ultimately enable all parties to achieve more favorable results than expected by acting alone.

With the intensive promulgation of PPP policies by the Ministry of Finance and the National Development and Reform Commission and the continuous launch of PPP projects in various provinces and cities, my country's PPP market has officially entered a stage of large-scale operation, which has brought about urban development, Comprehensive innovation in governance, financial management, business models, development mechanisms, investment mechanisms, and financial mechanisms in the fields of public services, infrastructure construction, energy conservation and environmental protection, tourism culture, and elderly care and medical care.

In the future, there will be trillions of projects that will introduce social capital, and PPP will also become an important source of a new round of local infrastructure funds after land finance and financing platforms.

What does PPP project mean?

PPP (Public-Private Partnership), the public-private partnership model, is a project financing model in public infrastructure. Under this model, private enterprises and private capital are encouraged to cooperate with governments and participate in the construction of public infrastructure.

According to this broad concept, PPP refers to the process of cooperation between the public and private sectors, allowing resources controlled by non-public sectors to participate in the provision of public products and services , so that all parties in cooperation can achieve more favorable results than expected by acting alone.

Compared with BOT, the main feature of PPP in a narrow sense is that *** is more deeply involved in the construction management and operation process of the middle and later stages of the project, and the enterprise is more deeply involved in the early scientific research, project establishment and other stages of the project. Both *** and the enterprise are involved in the whole process, and the cooperation between the two parties lasts longer and the information is more symmetrical.

PPP is the English acronym for Public-Private Partnership. It refers to the fact that in the field of public service, *** adopts a competitive approach to select social capital with investment and operation management capabilities, and both parties negotiate on an equal footing. The contract is concluded in principle, and the social capital provides public *** services, and *** pays consideration to the social capital based on the results of the public *** service performance evaluation.

PPP provides services in the form of market competition, mainly focusing on pure public and quasi-public fields. PPP is not just a financing method, but a system and mechanism reform involving administrative system reform, fiscal system reform, and investment and financing system reform.