PPP project 8 profit channels

Introduction: How to improve the efficiency of public **** product or service supply at the same time to ensure that the social capital appropriate profit, must be the public and private **** with the face, to solve the problem.

PPP is essentially to improve the efficiency of the supply of public **** products with the help of social capital funds and competition (especially innovation), which focuses on the output standard rather than the realization of the process, is a kind of incentive-compatible institutional arrangements; however, the public and private sides usually have very different interests, the government sector is concerned about the satisfaction of the public demand, while the social capital emphasizes the profitability of the acquisition (Trust Weekly Chapter).

The public and private sectors often have very different interests.

Therefore, ensuring that social capital is appropriately profitable is the key to avoiding underinvestment in its relationship-specific nature, increasing its incentives to compete and innovate, and ultimately realizing the government sector, social capital, and the public? Multi***win? that contributes to the success of PPP projects.

1 PPP project profit model necessity of innovation

In the traditional way of thinking, PPP is just a new way of financing for the government to build infrastructure or carry out public **** business, through which to reduce its financial pressure. Social capital is invested in PPP projects by acquiring equity or acquiring assets, investing and financing construction, operating and managing, or (and) providing services on demand, while government departments give social capital a reasonable return by transferring the right to charge fees, paying feasibility gap grants, or (and) government payments.

At this point, the focus of attention of both public and private parties is the social capital's return on investment or target rate of return: too low a return on investment or target rate of return is not conducive to the active play of social capital, and will even force it to withdraw from the field of infrastructure and public utilities; while a higher return on investment or target rate of return will bring a heavy financial burden to the government. public and private PPP projects are overly concerned about the public and private parties? input-return? The relationship between the public and private sides of a PPP project is overly concerned with the relationship between inputs and returns, and even shows an adversarial relationship in determining the return on investment or target rate of return, which is contrary to the original intent of the PPP partnership.

According to data from the Audit Office, as of the end of June 2013, China's governments at all levels have a repayment responsibility for about 20.7 trillion yuan of debt, and how to monitor and resolve the debt risk has attracted a lot of attention from the outside world. 2014, China's government began to vigorously promote government and social capital cooperation (PPP) across the country and intensively released PPP-related documents, including ? Opinions of the State Council on Strengthening Local Government Debt Management? (Guo Fa [2014] No. 43, hereinafter referred to as the State Council 43) the basic idea of ? Repair the open channel, block the culvert? (hereinafter referred to as the State Council Document 43). local government financing platform companies? This culvert, repair the government bonds and PPP two nullahs; however, the State Council 43 encourages the use of PPP mode to resolve local debt at the same time also clearly pointed out that ? Local governments should strengthen the contingent debt statistics analysis and risk prevention and control, and do a good job of supervision.

It can be seen that, for those who need the government to pay or give appropriate subsidies to the PPP project (i.e., non-operational and quasi-operational public **** project), whether the government departments or social capital, just focusing on the project's established revenue and financial subsidies is not enough, more need to be through the PPP project profitability model innovation? Will the cake bigger?

2 Framework of PPP Project Profitability Model under Partnership

Successful implementation of PPP needs to be based on partnership thinking, and both the public and private sides must abandon the confrontational thinking, respect each other, and proactively participate in the project, so how to improve the efficiency of the supply of the public **** product or service while ensuring that the social capital is appropriately profitable must be a key issue for the public and private sector. The innovation of the profit model of PPP projects is an issue that has to be considered before determining the return on investment or the target rate of return.

In real life, the transaction behavior behind the hidden value exchange, there is a certain value exchange paradigm or mechanism, and the concept of profitability model that is to explain this value exchange paradigm or mechanism; revenue and cost determines the economic value of the organization, profit or profitability level is the direct embodiment of the economic value of the enterprise, so the profitability model usually refers to the division of stakeholders in accordance with revenue structure, cost structure and the corresponding target profit (Trustweek chapter). In view of this, this paper is based on typical cases in practice, from the optimization of revenue structure, cost structure optimization, target profit stability of three aspects of the profitability model of PPP projects (as shown in Figure 1), it is worth noting that, due to the limited number of cases collected in this study, the profitability model of the PPP project tree framework shown in Figure 1 still has room for expansion.

Note:

① urban rail transit, urban integrated transportation hubs, railroads, ports / terminals, reservoirs, environmental management and other projects bundled with land, tourism, minerals and other resource development projects;

② health care, education, elderly care facilities, venues, airport terminals and other projects bundled with food and beverage, property, green and other ancillary services;

③ public toilets and garbage disposal facilities, street lighting energy saving, urban public **** parking stations, urban bus transportation, highways and other projects bundled with advertising and other by-products, security housing projects bundled with commercial housing as a by-product, seawater desalination bundled with industrial salt as a by-product, etc.;

④ relatively small-scale investment for use by a specific group of people or projects that will leave an impression on a specific group of people, if that specific group of people as a potential customer, then the production of that

⑤ Projects with large investment scale and complex specialties, such as urban rail transit, can be divided according to specialties and appropriate financing modes can be chosen;

⑥ Small-scale and scattered energy stations (heating/cooling), (domestic and industrial) sewage treatment, (domestic and kitchen) waste treatment projects;

⑤ Projects with large investment scale and complex specialties can be divided according to specialties and appropriate financing modes can be chosen;

⑥ Small-scale and scattered energy stations (heating/cooling), (domestic and industrial) sewage treatment, (domestic and kitchen) waste treatment projects

⑦ urban water supply, energy station (heating/cooling), sewage treatment, garbage disposal and other PPP development is relatively mature field;

⑧ can be the same type of public **** products in the profit and loss status of the project bundle, such as bundling traffic flow of different highway sections, but also has a specific link between `different types of public **** products in the profit and loss status of the project bundles, such as Seawater desalination and power generation bundling;

⑨ sewage treatment, garbage disposal, tunnels, bridges and other projects with traffic flow characteristics, as well as new energy vehicle charging and other projects with unstable markets.

3 PPP project profit mode of revenue structure optimization

Revenue is the increase in wealth, which includes both monetary revenue, but also can include reputation enhancement, potential revenue and other non-monetary. ppp projects can be optimized revenue structure to achieve profitability.

1, bundled with private products, with complementary sources of revenue

When the government wants to obtain through the PPP model of public **** products or services belong to the non-operational (without any price mechanism and cash inflow, mainly to produce social benefits) or quasi-operational (with a price mechanism and cash inflow, but no operating profit, the cost can not be recovered), you can for the public **** products or services The so-called bundling model or joint supply model for the supply of public **** goods, which was first proposed by Demsetz, is to complement appropriate private products and provide them in bundles so as to overcome the difficulty of charging fees or insufficient fees. Infrastructure and Public Utilities Concession Management Measures? (referred to as Decree No. 25) clearly stipulates that ? If the fees charged to users are insufficient to cover the construction and operation costs and reasonable returns of the concession, the government may provide feasibility gap subsidies, including other development and operation rights and interests related to the concession project granted by the government?

(1) Add resource development rights to make up for the lack of revenue

The government, by way of compensation to the PPP project company, will be infrastructure or public utility projects (metro, tunnels, environmental governance, etc.) around a certain number of resources (such as land, tourism, minerals) development rights to the PPP project company, to improve the overall profitability of the project company in the form of bundling. In order to ensure that the project investors to obtain a reasonable return, mobilize the enthusiasm of investors, that is, the so-called resource compensation project (Resource Compensate Project, RCP) financing model. For example:

① Hong Kong MTR Corporation (MTR?). MTR?) The profit model can be summarized as ? Rail transportation + real estate business? The combination of rail transportation, that is, the investment and financing of the construction of rail transportation and the development of real estate along the commercial synchronization, by the revenue structure of the MTR can be seen, real estate and commercial development of the income accounted for more than 50% of the total revenue, because of this, the MTR has become the world's best level of service, the highest operational efficiency, profitability, one of the most ideal subway company.

② In April 2004, the Victorian government decided to build a world-class conference center next to the existing Melbourne Exhibition Center on the banks of the Yarra River, the Victorian government through a tender to determine the contracting consortium headed by Plenary Group (referred to as "Plenary consortium?). As the social capital, it is responsible for the development, design and construction of the project, and has granted a 25-year concession to Plenary Consortium. In order to improve the viability of the project, both the public and private sectors have formulated an expanded commercial development plan for the area around the convention center, which includes the construction of office, residential and retail areas and a five-star Hilton hotel near the new Melbourne Convention and Exhibition Center, as well as the refurbishment of An old sailboat on the marina, Polly Woodside, was converted from a cargo shed into a restaurant, significantly increasing the benefits of the project through an economic multiplier effect.

(2) Authorize the provision of ancillary services to expand the profitability chain

When the infrastructure or utilities supplied by the PPP project are completed, the corresponding ancillary services are necessary for the normal operation of the PPP project, the government can authorize the PPP project company to provide such ancillary services (such as food and beverage, property, landscaping) that can generate the expected revenue, thus creating cash flow through the extension of the value chain, and compensating for the financial impracticality of the main project. the financial infeasibility of the main project. For example: Britain's National Health Service (NHS) and Bywest (Bywest) cooperation West Middlesex University Hospital (West Middlesex University Hospital) project, Bywest is responsible for its investment and financing and construction, West Middlesex University Hospital Foundation is responsible for the operation and management of the project, in order to compensate for In order to compensate and return the construction investment of the Budwest Company, all the supporting service projects during the operation of the hospital will be handed over to the Budwest Company to be responsible for, including catering, portering, security, cleaning, maintenance and supply of goods, and the service cycle may be extended from 35 to 60 years, and the service fee will be paid by the British government.

(3) development of by-products, increase revenue sources

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, authorized use of intellectual property rights of architectural works), as a way to make up for the financial infeasibility of the main product project, such as Beijing Fengtai District, Guozhuangzi and Changping District, Huilongguan limited price housing project in the Increased allocation of commercial housing development, Meizhou model public toilet project used to raise toilets in the stores, restaurants, office buildings, garbage transfer stations. The specific planning program can be either initiated by the public **** department, or by the social capital planning proposed, public **** department review and approval.

The former, for example: the City of Sunderland, UK, used the PFI approach to design, install, operate, maintain and finance the city's street lighting, signage and street equipment (30,500 lampposts and 6,000 highway signs), with a contract term of 30 years and the requirement to replace all the equipment within a maximum of five years, and the social capital of the project received a one-off payment of 265,000 pounds for replacing all the equipment during the first five years of the contract period. The social capital in the project received a one-off payment of ￡2.65 million in the first five years of the contract period for the replacement of all equipment, followed by an annual return of ￡1.589 million per annum during the operating period through the operation of third party revenues (discounted*** ￡1.589 million) from advertising on light poles and highway signs, and from the increase in the traffic CCTV (note: CCTV) fees.

The latter, such as: Germany will be public toilets market-oriented operation, with a view to making up for the lack of government funding at the same time, to promote public toilets in energy saving, water saving, environmental protection and other technological innovations, in 1990, in the city of Berlin, the public **** toilet operating rights auction, later known as ? The king of toilets? Hans Wahl, who was later called the "King of the Toilet", has promised to provide free public toilets. Val that commitment to provide free public toilet facilities and its maintenance and cleaning work, when its competitors thought he was crazy, so in the lack of competition, commitment to free toilets, only ask to pay a low management fee, Val's company took the right to operate public toilets all over Berlin in one fell swoop; Val's company's profitability is obviously not in the toilets at the entrance of the 0.5 euros on the coin-operated portals, the largest source of income is the public toilets outside the walls of the advertising operation, it turned many of Berlin's toilets outside the wall into an advertising wall, coupled with Val's wall costs much lower than the average advertising company, making Chanel, Apple, Nokia and many other famous companies advertise on public toilets.

2, the title of the public **** product, value-added social capital reputation capital

For social capital, can add value to its own, for its development to help the return is not only limited to the monetary form, but also can be to improve the visibility of the non-monetary form of potential gains, etc., so the PPP project can also be the title of the public **** product as a return on social capital. Japan's Toyota Motor Corporation is keen on this type of PPP project. For example, Toyota Motor Corporation donated 3.5 million RMB to build a street bridge in Tianjin, named ? Toyota Bridge? Although Toyota Bridge could not generate any direct cash income, Toyota Motor Corporation reaped huge hidden reputational benefits by getting the naming right of the bridge. Another example: Toyota Motor Corporation was responsible for the construction and maintenance of the Toyota Center Arena, home of the NBA's Houston Rockets. s investment, financing, construction and maintenance, but is not responsible for its operation to recoup the construction investment, but through the title for the stadium to attract the Rockets fans watching the game at the Toyota Center Arena to buy Toyota cars.

4 PPP project profit model of the optimization of the cost structure

The cost is the social capital to invest in the construction, the concession operation of the resources that must be spent on the monetary expression, so the optimization of the cost structure can be either to alleviate the one-time construction of the social capital inputs, through the economy of scale to reduce the cost of the unit of product, but also through the technology and management innovation to reduce the daily operating costs, the cost structure can be optimized. Technology and management innovation to reduce the daily operating costs.

1, integrated financing model, sharing construction investment

For the construction period of large-scale investment, the operating period of insufficient charges for the public **** project, it can be divided appropriately, only part of the project (closely related to the operating costs and efficiency of the) to take the PPP mode or different parts of the different parts of the PPP mode breakdown, so as to alleviate the social capital on the project one-time construction investment and improve its profitability. For example:

①The entire construction of Beijing Metro Line 4 is divided into two parts: A (land acquisition, demolition and relocation and civil engineering) and B (purchase and installation of mechanical and electrical equipment), and the Beijing Municipal Government has only handed over Part B, which accounted for 30% of the total investment (with an investment amount of about 4.6 billion yuan), to MTR Corporation Limited (a listed company held by the HKSAR Government), Beijing Capital Group Corporation (a local state-owned enterprise) and Beijing Infrastructure Investment Co. Ltd. (a listed company owned by the HKSAR Government), Beijing Capital Group Corporation (a local SOE) and Beijing Infrastructure Investment Company Limited (a local SOE)**** to finance the construction (i.e. BOT mode). 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 recovers its investment through the income from metro fares and the income from the commercial operation of the stations, and hands over the facilities of Part B of the project to the Beijing municipal government free of charge at the expiration of the concession period (30 years), and returns the facilities of Part A of the project to the Beijing Metro Line 4 Investment Limited Liability Company (Trust Weekly Chapter).

② Kunming Bus Rapid Transit (BRT) system project (including the construction of transportation hubs, first and last stations, yards, station signs along the way) construction scale, charges significantly insufficient, the lack of attraction to private capital. To this end, the Kunming municipal government has adopted the integrated financing model of BOT-BT-TOT: the large capital demand, better investment returns and long construction period of the special road construction (including road construction, traffic hubs, terminals and station construction) part of the BOT mode to the company responsible for the A; the capital demand is relatively small, no charging mechanism, a short construction period of the acquisition of vehicles and intelligent Transportation system construction part, the use of BT mode to the company B is responsible for; A company after the completion of the construction, through the lease agreement will be part of the operating rights of the special road transferred to the company C, at the same time, the company B in the completion of the construction and repurchase by the government, and then by the government will be the purchase of vehicles and the intelligent transportation system part of the operating rights of the transfer of the company C, so far, the entire BRT project using the TOT mode by company C is responsible for the operation.

2, packaged operation to form a scale effect, reduce the cost of the unit product

In the PPP project, the social capital needs to carry out a certain scale of investment in the construction, or to buy the project for a certain period of time of the property rights or the right to operate, then, if the demand for public **** products or services is too small is the overcapacity of the PPP project, resulting in the profitability of the social capital of the poor or the need for government financial subsidies for the difference. part of the financial subsidies. It can be seen that 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.

To the provinces announced the first batch of PPP project list of generally favored sewage treatment projects, for example, the larger the scale of the more attractive to investors, and small-scale projects basically do not have the investors on the market-oriented operation of the revenue requirements. Therefore, for the prevalence of small-scale and distribution of scattered characteristics of the township sewage projects, the usual practice of domestic packaged operation, ? A plant a price? Such as Shenzhen Longgang 10 sewage treatment plant package transfer project, Hainan 16 sewage treatment plant into two? Project package? entrusted to operate the project, Jiangyin 4 sewage treatment plant packaging investment projects.

Another example is Jiangxi Province Industrial Park Sewage Packaging BOT Project: In August 2010, the Jiangxi Provincial Government promulgated the planning of Poyang Lake Ecological and Economic Zone, and listed the construction of industrial park sewage treatment facilities as the first of the ten major energy-saving and emission reduction projects, and required the completion of sewage treatment projects in 102 industrial parks in 2015; in May 2011, the Jiangxi Provincial Government signed a comprehensive strategic cooperation framework (the framework for comprehensive strategic cooperation between Jiangxi Provincial Government and China Energy Conservation and Environmental Protection Group) with the China Energy Conservation and Environmental Protection Group. Comprehensive strategic cooperation framework (planning capacity of 2.37 million tons per day, a total investment of 14.6 billion), by the Jiangxi Provincial Urban Investment (20%) and China Energy Conservation and Environmental Protection Group (80%) the formation of China Energy Conservation Jiangxi (SPV), responsible for the 102 industrial parks in Jiangxi Province, sewage and solid waste treatment, environmental protection and energy saving, the scope of work includes the investment in the construction, operation and management, the concession period of 30 years, paid for by the Government to carry out the payment.

3, management or technological innovation to reduce operating costs

The use of PPP is not only to solve the financial constraints of the public **** sector, but more importantly, to improve the efficiency of the supply of public **** products with the help of the social capital's professionalism and innovation. Therefore, in order to expand its profitability, social capital should give full play to its active innovation initiative in the franchising process, and continuously reduce its operating costs through management or technological innovation.

For example, in Changsha County, a suburb in the eastern part of Changsha City, Hunan Province, the Niujiaochong community cooperated with Changsha Green Cycle Recycling Resources Co. to launch the ? Green Recycling Points Program? After residents register with Changsha Green Recycling Resources Co., Ltd. and receive their own QR code, residents will pack their recyclable garbage and stick the QR code on it and put it into the community's special recycling bin, then the company will transport the garbage to the recycling sorting center to determine the residents' information by scanning the QR code, and then convert it into points according to the type of garbage to enter into the users' accounts, so that the residents' QR code garbage points can be exchanged for daily necessities after reaching a certain amount. Residents' QR code garbage points can be exchanged for daily necessities or offset against the community's property fee after reaching a certain amount. Centralized recycling and then the social capital of the PPP project to carry out garbage classification is a time-consuming and labor-intensive matter, but for the residents who form and put out household garbage, garbage classification is a matter of lifting up their hands and easy to do, Changsha Greendoctor Recycling and Renewable Resources Co., Ltd. through the two-dimensional code community garbage recycling model of this management innovation, fully mobilized the enthusiasm of the majority of the residents, and greatly compressed the cost of garbage classification, thus greatly expanding its The company's goal is to provide the best possible service to its customers, and to provide the best possible service to its customers.

5 PPP project profit model of the stability of the target profit

Getting profit is the main way to increase the value of the enterprise, therefore, whether to get stable, sustainable profit is an important basis for enterprises to make investment decisions. In view of this, not only should the PPP project social capital? have money to earn, profitable? , but also to ensure the relative stability and sustainability of its profits, reduce the risk of social capital in the PPP project to achieve the target profit, is also one of its important profit model design ideas.

1, the profit and loss situation of different public **** product bundling, improve the sustainability of the target profit

Infrastructure and utilities field both cash inflow of operating public **** project, there is also insufficient cash inflow of non-operating public **** project, and even the non-operating public **** project without any cash inflow. Operating public **** projects have a strong attraction for social capital, and the adoption of the PPP model may result in social capital? Profitable? , placing the government in an awkward situation; while quasi/non-operational public **** projects are not attractive to social capital, the use of PPP model after the government needs to make appropriate financial subsidies or need to pay, thus bringing some financial pressure on the government. In order to attract social capital to a wider range of infrastructure and utilities, while ensuring that PPP projects ? profitable but not profiteering? , PPP can be implemented by bundling projects with very different profit and loss profiles to realize ? to the abundance of the poor?

Representative projects such as: Tianjin's Guotou Beijiang Power Plant Circular Economy PPP project by the National Development and Investment Corporation, Tianjin Jinneng Investment Company, Tianjin Changlu Hangu Salt Farm Limited Liability Company according to the ratio of 64:34:2 *** with the construction of the investment and operation and management of the project by ? Power generation project, seawater desalination, concentrated seawater salt production, heat supply, land preparation, waste utilization? The project consists of six sub-projects, providing a variety of important products such as electricity, heat, fresh water, land, salinization products, building materials and so on. Among them, seawater desalination project is the key link of circular economy, due to the production cost and water supply system and other constraints and has been in the loss-making state, the project is the poor profitability of seawater desalination project and the profitability of the power generation project bundled, the implementation of ? Electricity to feed water? The policy, the profit of the power generation project to make up for the losses of the desalination project; in view of Tianjin's Guotou Beijiang power plant circular economy PPP project as a whole is profitable, the second phase of its planning 2 sets of 1 million kilowatts of generating units and 300,000 tons / day of seawater desalination plant has been approved on December 24, 2014 by the National Development and Reform Commission.

2, the operation of the pre-reasonably set the guaranteed amount to improve the stability of the target profit

Due to the long-term nature of the PPP contract, the uncertainty of the cost and demand that has become its distinctive feature. In order to ensure the stability of the target profit of the social capital, the public and private parties usually set the minimum demand guarantee (minimum demand guarantee, MDG) or minimum revenue guarantee (minimum revenue guarantee, MRG), that is, the so-called guaranteed amount of China's PPP practice, which is essentially a kind of public-private risk ****taking strategy or risk mitigation mechanism for social capital. Due to China's rapid economic and social development and the PPP market is not yet sound, the practice of setting guaranteed reserve volume in the pre-operation period is common in PPP projects with flow characteristics such as sewage treatment, garbage disposal, tunnels, bridges, etc., as well as projects with immature markets such as charging of new energy vehicles, and the following describes the specific practices in the fields of sewage treatment and garbage disposal.

① wastewater treatment PPP projects will usually be in the first 3-5 years of the operating period, according to a certain percentage of the design scale of treatment to set a stepwise increase in the guaranteed amount of water, the remaining concession period is the design scale for the guaranteed amount of water, according to the practice of monthly payment, if the actual amount of treatment in the month does not reach the guaranteed amount of the guaranteed amount of wastewater treatment service fees are still billed in accordance with the guaranteed amount of water (without taking into account the suspension of the penalty, and other special circumstances). This allows investors to obtain predictable, stable cash flow guarantee; the field of operation of the more successful, such as Hefei Wang Xiaoying sewage treatment plant assets and interests transfer (TOT) project.

② and sewage treatment is slightly different, waste disposal project guaranteed amount of setting, need to take into account the actual garbage supply and the expected growth rate, the design of the scale of treatment, garbage water content and garbage treatment equipment, the actual load capacity, if the garbage incineration power generation project also need to consider incineration rate; In addition, due to the garbage supply in the middle of the year due to seasonal changes in the fluctuation of the larger, therefore, the garbage supply guaranteed amount is not on a monthly basis, but on a monthly basis. In addition, because the amount of waste supply in a year will fluctuate greatly due to seasonal variations, the guaranteed amount of waste supply is not implemented on a monthly basis, but on a cumulative annual basis, i.e., only in the beginning of the payment date of the annual cumulative amount of actual garbage disposal will be calculated every year, and if the cumulative amount of garbage is lower than the guaranteed amount of garbage for the whole year, the guaranteed amount of garbage will be calculated according to the whole year's payable garbage disposal fee (without taking into account the suspension of the special circumstances, such as penalties); the operation of this field is more successful, such as Rongcheng Waste-to-energy BOT project.

6 Conclusion

Relevant data show that the use of PPP does not necessarily make the government ? save more money? , the international judgment of whether a public **** project adopts PPP is usually based on whether the increased cost compared to the traditional model is relative to the efficiency of public **** product supply or the improvement of the quality of public **** services? Value for Money? (Value for Money, VFM). Therefore, unlike the general engineering projects between the contracting parties, the zero-sum game between the contracting parties and the contractors is not the same as the zero-sum game between the contracting parties. Zero-sum game? Therefore, unlike the general engineering projects in which the contracting parties play a zero-sum game, the public and private parties of PPP projects pursue more value-added projects, which can realize the value-added value of the project. *** win?

The PPP project is a great way to get your money's worth.

In view of this, the two sides should abandon the traditional confrontational thinking, which requires both sides to take a positive attitude to the design and innovation of the profit model: the public **** department should learn extensively from the experience of successful cases at home and abroad, and take the initiative to choose a legitimate and appropriate profit model for the PPP project, or objectively deal with the profit model proposed by the social capital program; and the social capital should give full play to its professional, The social capital should give full play to its professional, competitive advantages, in the transaction stage to the public **** department to provide a feasible profit model program, in the construction or operation period through technical or management innovation to optimize the project cost.

In addition, the profit model is the logic and method of obtaining profits, with the introduction of the value theory, its research focus gradually shifted from focusing on corporate profits to focusing on user value, thus proposing the concept of business model; this paper argues that the project is a one-time task with a specific goal, but also the organization's allocation of resources, create value and ultimately reach their own strategic goals of the means or ways, therefore, the future PPP project social capital should start from the public value proposition, public demand as the center of value creation and value transfer, in the realization of public value while acquiring corporate value.

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