Abstract:

PPP projects  have become the new engine to boost investment, and an important power to stabilize development, optimize structure, overcome weaknesses and improve social welfare in the past three years. Currently, China has become the world’s largest market for PPP projects, however, as PPP grows vigorously in China, problems arise such as low rate of PPP contract signing, inactive participation of private capital, low rate of return on investment as well as difficulty in and high cost of financing and unbalanced risk sharing. The paper proposes the State strengthen top design for PPP, optimize related legislation, increase the confidence of investors, lower access threshold of PPP projects, expand subjects of market participation, solve financing problems and set up an appropriate rate of return on investment so as to achieve normative, orderly and healthy development of PPP projects.

Key words: PPP projects, project financing, private capital, top design