The financing methods of PPP mainly include government-supported financing, commercial loans and equity financing. Government-supported financing means that the government helps private enterprises to share risks and reduce financing costs by providing financial support and policy support to PPP projects. Commercial loans refer to private companies financing from banks and other financial institutions, but the risks and benefits are borne by private companies independently. Equity financing refers to the financing of private companies by issuing stocks or absorbing shareholders' funds, but it is usually implemented after the project is profitable.
PPP model has been widely used in China and has become the main financing method for large-scale public projects. The government can use PPP model to attract more private capital to participate in public projects, thus improving the quality and efficiency of projects. But at the same time, we should also pay attention to the risks of PPP model, because this cooperative relationship means that the government and private companies have to deal with different risks and responsibilities. Therefore, the government needs to seriously consider the applicability and feasibility of PPP mode to ensure the successful implementation and sustainable development of the project.