PPP cooperation should not be narrowly understood. It does not mean that the government and social capitalists must jointly set up SPV companies (that is, special purpose companies). Document No.43 on the promotion and application of PPP cooperation mode makes it clear that investors will jointly build operational cooperation projects with the government in the form of sole proprietorship or joint establishment of special purpose companies in accordance with the agreed rules.
According to this broad concept, PPP refers to allowing resources held by the non-public sector to participate in the provision of public goods and services in the process of cooperation between the public sector and the private sector, so as to obtain more favorable results than when the partners act alone.
Compared with BOT, the main characteristics of narrow sense PPP are that the government is more involved in the construction, management and operation process in the middle and late stage of the project, and enterprises are more involved in the scientific research and project establishment in the early stage of the project. Both the government and enterprises participate in the whole process, and the cooperation time between the two sides is longer and the information is more symmetrical.
PPP is the abbreviation of Public-Private Partnership, which means that in the field of public services, the government chooses social capital with investment and operation management capabilities in a competitive way, and the two parties conclude a contract on the principle of equal consultation, and the social capital provides public services, and the government pays consideration to the social capital according to the performance evaluation results of public services.
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.