PPP project company in the provision of government demand for public **** products or services, can be accompanied by the production of more operational by-products (such as advertising, architectural works of intellectual property rights authorization to use), as a way to make up for the main product of the project is not financially viable, such as Beijing Fengtai District Guozhuangzi and Changping District, Huilongguan limited housing project in the allocation of the additional development of commercial housing, the Meizhou model Stores, restaurants, office buildings, and garbage transfer stations used to raise toilets in public toilet projects. Specific planning program can be either initiated by the public **** department, but also by the social capital planning proposed, public **** department review and approval.
When the infrastructure or utilities supplied by the PPP project is completed, the corresponding supporting services are necessary for normal operation, the government can authorize the PPP project company to provide such supporting services (such as food and beverage, property, greening) that can generate the expected revenue, thus creating cash flow through the extension of the value chain and compensating for the financial infeasibility of the main project. The entire construction of Beijing Metro Line 4 is divided into two parts, A (land acquisition, demolition and civil works) and B (acquisition and installation of mechanical and electrical equipment), with the Beijing Municipal Government handing over only Part B, which accounts for 30% of the total investment (with an investment amount of about 4.6 billion yuan), to MTR Corporation Limited (a listed company controlled by the Hong Kong SAR Government).
The Beijing-Hong Kong MTR Corporation (SPV), which was formed by Beijing Capital Group (a local state-owned enterprise) and Beijing Infrastructure Investment Company Limited (a local state-owned enterprise)***, is responsible for financing the construction (i.e., the BOT model).
In addition, the SPV is responsible for the operation and management of Metro Line 4, the maintenance of all facilities (including Parts A and B) and the renewal of assets other than the cavernous body, as well as the commercial operation of the stations, and the recovery of the investment through the income from metro fares and the income from the commercial operation of the stations After the expiration of the concession period (30 years), the facilities of the Part B project will be transferred to the Beijing Municipal Government without any compensation, and the facilities of the Part A project will be returned to the Beijing Metro Line 4 Investment Limited Liability Company (Trust Shop Journal Chapter).
The Kunming Bus Rapid Transit (BRT) system project (including the construction of transportation hubs, first and last stations, yards, and stops along the way) has a large construction scale, with a significant lack of fees and charges, making it unattractive to private capital.
To this end, the Kunming municipal government has adopted the BOT-BT-TOT integrated financing model: large capital requirements, better investment returns and long construction period of the construction of the special road (including road construction of the first and last station and the construction of the field station) Department of the set up, the transportation hub station set up, the construction of the transportation hub station, the construction of the first and last station and the field station) part of the use of the BOT model to the A company is responsible for;
The Relatively small capital requirements, no toll mechanism, short construction cycle of vehicle acquisition and intelligent transportation system construction part, using the BT mode to the B company is responsible for: A company after the completion of the construction, through the lease agreement will be the special road part of the right to operate the C company, at the same time, the B company in the completion of the construction and repurchase by the government, and then by the government will be the acquisition of vehicles and intelligent transportation system part of the right to operate the C company. Company B, after the completion of construction and repurchase by the government, then the government will transfer the operation right of the vehicle purchase and ITS part to Company C. So far, the whole BRT project has been handed over to Company C for operation by adopting TOT mode.
Package operation to form a scale effect, reduce the unit cost of products.
In the PPP project, the social capital needs to carry out a certain scale of construction investment, or to buy the project for a certain period of time property rights or operating rights, then, if the demand for public **** products or services is too small then the PPP project overcapacity, resulting in the profitability of the social capital is poor or the need for the government to make the difference in the part of the financial clothes sticker.
See, to ensure that the demand for PPP projects of the appropriate size, thereby reducing the cost per unit of product is a way of thinking about the profitability of PPP projects.