This model encourages private enterprises and private capital to cooperate with the government and participate in the construction and operation of public infrastructure to achieve a win-win situation. By cooperating with private enterprises, the government can make use of the capital and technological advantages of private enterprises. Reduce the financial pressure of the government and improve the efficiency of public infrastructure construction.
Under the ppp mode, the government and enterprises share the risks and responsibilities of the project, which reduces the risks in one aspect and improves the success rate of the project. The participation of private enterprises can improve the efficiency and quality of public services, meet the needs of the public and improve social satisfaction. Ppp projects need long-term cooperation between the government and enterprises, and there may be differences and contradictions between the two sides in the process of cooperation, which will affect the implementation of the project.
Profit problem
Private enterprises participate in public infrastructure construction mainly for profit. If the profit is too high, it will cause social dissatisfaction. If the profit is too low, it will affect the enthusiasm of enterprises to participate. Ppp projects need perfect legal and regulatory support. If the laws and regulations are not perfect or poorly implemented, it will affect the smooth progress of the project.
Generally speaking, ppp mode has great advantages in public infrastructure construction, which can improve the efficiency and quality of public services, but it also needs to pay attention to cooperation risks and laws and regulations. In the process of implementation, the government and enterprises need to cooperate closely to establish a perfect contract and legal system to ensure the smooth implementation of the project.