DOI: 10.21276/sjet.2017.5.3.7 Scholars Journal of Engineering and Technology (SJET) ISSN 2321-435X (Online) Sch. J. Eng. Tech., 2017; 5(3):117-121 ISSN 2347-9523 (Print) ©Scholars Academic and Scientific Publisher (An International Publisher for Academic and Scientific Resources) www.saspublisher.com Research Article Infrastructure of PPP Mode in Chinese-with Beijing Metro Line as an example Ru Yue Li Southwest Jiao tong University, Jiao Da RD. Jinniu District, Chengdu 610031, China *Corresponding author Ru Yue Li Email: [email protected] Abstract: Public infrastructure has obvious public welfare, social than economic benefits, in the same time, the construction of the huge initial investment alone operating income during the irreparable. Therefore, it is necessary to introduce market competition mechanism in the construction of public infrastructure, and broaden the financing channels and the development of a wide range of investors. Private enterprises to participate in the construction of public infrastructure is a good way, it can effectively alleviate the shortage of construction funds situation. Keywords: PPP mode Infrastructure Beijing Metro Line. PPP MODEL as the whole process of PPP project financing, and that Situation Study in abroad during this period the government and the private sector PPP originated in the United Kingdom, from should assume a shared responsibility and risk. the development of PFI (Private Finance Initiative). It Domestic classification of PPP model is mainly taken means "private financing" and translated as "private Wang Hao approach, through the PPP model is divided finance initiative" in our country .UNDP believes PPP into qualitative analysis class outsourcing, franchising should include an informal dialogue between and privatization category . government officials and local community organizations. Canadian PPP Committee let PPP is PPP mode connotation defined as cooperation between the public and private PPP model is the public sector and the private sectors in order to better meet the needs of the public, sector to set up the project company, the public sector through appropriate mechanisms combine the to provide policy support, while private sector is advantages of both sides formed. On this basis, the responsible for investment in construction and Commission will PPP divided into three categories: operations and management. traditional contracting projects, with concurrency management projects and cooperative projects [1]. First, the government departments to work more later reference projects. The second is the private PPP model for foreign concept to define the sector involved in the project earlier [2]. focus of partnership, emphasizing between PPP mode among the public and private sector partnerships. This INFRASTRUCTURE guide will help the Government from the provider of The meaning of infrastructure the project participants and supervisors become, but Infrastructure can be divided into two also help to stimulate the enthusiasm of the private categories: One is the economic infrastructure, also sector. But the classification of PPP model is not known as productive infrastructure, including railways, uniform in foreign, there are different classification bridges, highways, tunnels, power, ports, airports and so criteria in varying degrees of cross-application and on; The second is social infrastructure, including concepts. culture, education, health care and other systems. In accordance with the area, the infrastructure can be Research state in China divided into rural infrastructure and urban Li Xiuhui, PPP is a new and improved mode of infrastructure. Infrastructure described in this article financing, which is also more complex forms of mainly refers to urban infrastructure. organization. Wang Li Regulations will be considered Available online at http://saspublisher.com/sjet/ 117 Ru Yue Li., Sch. J. Eng. Tech., Mar 2017; 5(3):117-121 Feature of infrastructure (1) Infrastructure with external characteristics The average construction cost per kilometer of Positive externalities in product and service Beijing's underground railway is 520 million yuan. infrastructure provided not only direct purchasers can According to the development plan of Beijing's urban be enjoyed, and would have a positive impact on the rail transit, the total length of four new lines currently surrounding area. At the same time, the foundation of under construction or proposed is 104 kilometers, and society will bring negative externalities, For example, the total investment is about 50 billion yuan. In like the residents of the surrounding area will give the addition, the then Beijing subway mode of operation to construction of the station, rails, etc. bring noise take a typical "state-owned" model, the ownership of pollution. the subway owned by the Government, the Government is responsible for investment in the construction of the (2) Infrastructure has a monopoly MTR and related operations. Under this model, Beijing Infrastructure monopoly is mainly due to its has subsidized about 1.1 billion yuan for the lines that basic network is often a natural monopoly, Such as have been built and used each year. It is estimated that water supply system in the water, post and after the four lines are put into operation in the future, telecommunications network lines, energy systems in the subsidy will be about 3 billion yuan every year. So the power supply network and gas supply network. that after 2008, the annual subsidy of the Beijing municipal government up to 40 billion yuan, this high (3)The construction of infrastructure facilities is investment costs and subsidies for the Government is advanced already overwhelmed. In order to solve the financial Compared with the construction of other bottleneck, in reference to many countries and regions facilities, the construction of infrastructure in the timing in the subway investment and financing and operating of the need for appropriate lead, For example, in urban mode, based on the Beijing municipal government construction and development process requires the decided to use PPP model construction of Beijing Metro laying of pipelines and the construction of the road Line 4, This is China's first Chinese-foreign cooperative together, infrastructure have a long life cycle, at the franchise urban rail transit project, this project for the same time,after the completion of its ability to provide promotion of this model to explore a path and products and services at every turn for decades, can not experience [3]. be extended and remodeled at any time . Case study (4)The amount of investment in infrastructure At the beginning of February 2005, the Beijing construction is large, and the term of recovery is long Municipal Government and the Consortium formed by Infrastructure projects are often large-scale the Hong Kong Railway Company Limited (MTR) and projects, supporting the strong, making the required Beijing Capital Group Limited (the first of its kind) investment from a few billion, as many as tens of agreed on the terms of the concession agreement and billions, or even hundreds of billions. Beijing Metro initialed the " Beijing Metro Line 4 franchise Line 4, for example, the initial investment amount to agreement. "June 1, 2006 Line 4 PPP Project Company more than 15 billion. Although the initial cost of Beijing Jinggang MTR Co., Ltd. was incorporated and infrastructure investment is great, but once the signed the "Beijing Metro Line 4 Franchise Agreement" profitability, you can get long-term stable cash inflows. with the Beijing Municipal Communications Commission on behalf of the Beijing Municipal CASE STUDY - TAKING THE PPP PROJECT OF Government. In accordance with the design and BEIJING METRO LINE 4 AS AN EXAMPLE planning, Beijing Metro Line 4 project total investment Project Overview of about 15.3 billion, The whole project is divided into Beijing Metro Line 4 is the backbone of the A, B two parts of the construction project, which A part Beijing rail transit network and the main line of the main cave, track and other civil works, This part connecting the urban north-south, Haidian District On of the larger amount of funds required, the amount of River Bridge Station, along the way through the densely investment of about 10.7 billion yuan, accounting for populated Fengtai, Xicheng and Haidian three city, after 70% of the total investment, By the establishment of the Tsinghua University, Peking University, 4 line company is responsible for investment in Zhongguancun, Xidan and Yuanmingyuan, Summer construction and enjoy their ownership; Part B is Palace and other attractions Is a very distinctive subway mainly for vehicles, signals and other electrical and lines. mechanical equipment investment and construction, investment of about 4.6 billion, accounting for 30% of Line 4 full length of 28. 2 km, located 24 sites the total investment, This part of the first consortium (including a ground station), a depot, a parking lot. formed by the MTR Corporation Limited Beijing Metro Project started construction in late 2003, officially Line 4 franchise project company Beijing-Beijing-Hong opened in 2009, the line logo for the green, the current Kong Metro Co., Ltd. is responsible for investment and average daily traffic of about 1.3 million passengers. construction. At the same time, A, B part of this Available online at http://saspublisher.com/sjet/ 118 Ru Yue Li., Sch. J. Eng. Tech., Mar 2017; 5(3):117-121 division, but also have the nature of the rail traffic the