Suggestions of Yichang Municipal People\'s Government on Promoting PPP (Public-Private-Partnership) Model (Trial) ( the Suggestions) was approved through discussion on the morning of June 1st, 2015, which helps to guide social capitals to participate in the investment and operation of public service fields, to give full play to the decisive role of market in the allocation of resources. It is reported that it is the first guiding opinion on PPP Model in Hubei Province.
　　PPP Model, which refers to the cooperation between the government and social capitals in order to provide public service, is regarded as a radical innovation in public service supply mechanism. Social capitals with relative investment and operation management ability shall be chosen by the government on the basis of competitive selection. Then the two parties shall conclude a contract in accordance with the principle of equal consultation in order to clarify the relationship between responsibilities, rights and duties. Social capitals will provide public service and the government will pay corresponding price to social capitals according to the performance appraisal of public service to guarantee reasonable profits.
　　Unlike BT (Building-Transfer) Model which aims at financing, the new PPP Model is a long-term cooperative relationship between the government and social capital on the basis of equality. “If BT Model is taken as a turnkey project that the government will repurchase the project after it is invested and constructed by the investors, the new model emphasizes more on the social capital’s participation and management on the whole lifecycle of the project, including identification, preparation, purchase, execution and handover, etc. Therefore, PPP Model has been vividly described as a marriage, not just a wedding.” An officer of the Economic Construction Department, Yichang Municipal Finance Bureau, Wan Yong said, who once participated in drafting the Suggestions.
　　Looking through the Suggestions, the reporter found that the operation mode of PPP (Public-Private-Partnership) is primarily classified into three types: first, it has explicit fee basis and the charging pay can fully cover the construction and operation costs and create reasonable profit-oriented projects. By granted franchise of the government, PPP is capable of attracting investments and business main bodies and conducting managements. Second, those quasi-operational projects that the operating charges cannot balance investment costs and benefits and can only guarantee small profits, the upfront costs are still enormous but the payback period is long, will receive necessary subsidies from the granted franchise authorized by the government. Third, the non-operational project that lacks “ the users pay” basis, mainly hinges upon “the government pay” to get the costs back will depend on the cooperation model which contains the government’s purchase, matched operational resources and government buying services plus matched operational resources. Wan Yong said, “Currently, the relevant departments are collecting and selecting PPP projects, and the project lists will soon be uploaded and published on the municipal information platform”. According to Wan Yong’s introduction, the initial PPP demonstration projects primarily involve the urban infrastructure, sewage disposal, solid waste disposal, environmental governance in different areas and bus stand renovation. The urban bus stands renovation as one of the pilot projects will soon get into the government purchasing phase. (Trainee Reporter: Gao Shengnan)