What does the government ppp project mean?

Ppp project means that in order to provide some public goods and services, non-public sector resources are allowed to participate in the provision of public goods and services, so as to achieve more favorable results than expected, and the rights and obligations of both parties are clearly defined through signing contracts to ensure the smooth completion of cooperation, that is, the public-private cooperation model.

Full name of PPP: Public-Private Partnership, also known as PPP mode, that is, the cooperation between government and social capital, is a project operation mode in public infrastructure. Under this model, private enterprises and private capital are encouraged to cooperate with the government and participate in public infrastructure construction.

PPP provides services in the form of market competition, mainly focusing on pure public and quasi-public fields. PPP is not only a means of financing, but also a system reform, involving administrative system reform, financial system reform and investment and financing system reform.

In a broad sense, PPP refers to various cooperative relationships established between the public sector and the private sector to provide public products or services. Generalized PPP can be understood as a general term for a series of project financing modes, including BOT, TOT, DBFO and other modes. Narrow PPP emphasizes the risk sharing mechanism and the principle of value for money in the process of cooperation.

legal ground

Guiding opinions on cooperation between government and social capital

Article 1 Fully understand the significance of cooperation between government and social capital.

The cooperation mode between government and social capital (PPP) refers to the long-term cooperative relationship between government and social capital through franchising, purchasing services and equity cooperation, etc., in order to enhance the supply capacity of public goods and services and improve the supply efficiency. The cooperation between the government and social capital is conducive to innovating the investment and financing mechanism, broadening the investment channels of social capital and enhancing the endogenous power of economic growth; It is conducive to promoting the mutual integration and complementary advantages of various types of capital, promoting the diversification of investment subjects and developing a mixed ownership economy; It is beneficial to straighten out the relationship between the government and the market, accelerate the transformation of government functions, and give full play to the decisive role of the market in allocating resources.