Research on the Status Quo, Problems and Measures of the Development of China’s PPP Model

China is in the process of rapid urbanization and rapid economic development. The demand for infrastructure construction is getting higher and higher, but government funds are limited and cannot meet its needs. With the decline of government investment in the construction of public infrastructure, and the role of private capital enterprises in the construction of public infrastructure has begun to play an increasingly important role, and the continuous development of marketization of investment and financing models, a new financing model has been introduced—Public-Private-Partnership (PPP) model, that is, the cooperation model between public government departments and private enterprises. At the present stage of the development of China’s PPP model, there are many problems: inadequate legal systems, inadequate supervision and management, insufficient understanding of the PPP model in various regions, inadequate risk taking and benefit distribution, and large government credit risks. In view of this, we should start to improve the legal and regulatory system related to the PPP model, establish a sound supervision and management mechanism, establish a specialized PPP management agency, establish a reasonable risk sharing and benefit sharing mechanism, and establish an information sharing platform. Therefore, this article starts from the deep meaning of the PPP model, the current status of development in China, the problems that arise, and better solutions to study it in depth.

X. J. Tan during contract. From a practical point of view, the long-term and effective cooperation between the public and private sectors is a necessary condition to achieve the purpose of providing public goods and services; the third is to balance fairness and efficiency. The profit-seeking nature of the private sector makes it possible to reduce production costs by all means and make the best use of limited resources to maximize profits. The government only fulfills relevant commitments after consuming and obtaining high-quality products and services, which ensures that the government takes a leading role in the project process, which encourages companies to strictly control products and services in the production process, so that the public's interests are not harmed; the fourth is the operation mechanism of various agency relationships. At present, the PPP model adopts a comprehensive agency mechanism. Because PPP companies lack the ability to develop projects, in the initial expansion process of the project, in order to enable the project to continue, PPP companies will widely use various agency relationships, and this agency relationship will be specified in the contract.

Diversities of PPP Model
The classification of PPP differs between international and domestic institutions and organizations. At present, the World Bank divides PPP into four categories (LifengLiu, 2015;Zhihong Wu, 2005). The first category is management and lease contracts. It refers to the management right of a state-owned enterprise can be transferred to private organizations within a certain period, but the state still retains the investment decision-making power of state-owned enterprises. The second is that state-owned enterprises hand over existing or partially existing facilities operation and management rights to the private sector within a certain period of time. Franchise contracts are mainly based on the combination of management and operations that are mostly private capital expenditures, such as BROT, RLT and ROT, etc.; the third category is an undeveloped project contract, which refers to the construction and operation of a new project by a private institution or public-private partnership during a specific contract period, which will be replaced by the original private or public-private partnership after the contract period Transfer of ownership to the public sector. At present, such models include BOO, BLT and BOT; the fourth type is the contract formed by the private sector in the form of divestiture of all or part of assets in the process of publicly promulgating or stipulating privatization projects and auctions of state-owned assets. In the early days, BOT, PFI, BOOT, TOT, etc. were used as PPP forms, and PPP was the collective name for their many forms. In fact, different policy needs determine different forms of PPP.

Difficulty of PPP Model
Twenty or thirty years of operation time is inevitable for a PPP project. In this long-term operation process, any kind of situation may occur, such as exchange rates, economic cycles, political turbulence in some countries, prices and various X. J. Tan macro-controls will have an indirect or direct impact on the project (LifengLiu, 2015;Zhihong Wu, 2005;Lulu Sun, Renjie Wang, & Yanqiu Guo, 2019). In addition, PPP projects involving multiple interests should be considered from multiple angles. They are the public's desire for first-class public products and services, the high-yield and high-efficiency goals pursued by the private sector from beginning to end, and the social benefits and relative fairness that the government department is committed to. How to coordinate the relationship between the three is a very tricky thing. According to the data collection, collation and analysis of the PPP project contract, a good PPP project involves many issues. Full investigation and detailed data analysis should be done first. You can't just see the profits and swarm up without considering other Factors, only by doing everything to avoid or reduce a series of contradictions and conflicts in the later stage.

Long Period of PPP Model
A PPP project generally takes thirty or more years, and five or six years may not achieve the goal that the PPP model originally adopted. For a large-scale project, it takes only five or six years for the government to repurchase. For the government, the time is so short that it cannot fully recover the initial cost of the government investment, and the private sector cannot guarantee the quality of the project. Therefore, the government's subsequent maintenance costs are high, but the pressure to increase fiscal expenditure runs counter to the original goal. If the project is extended to twenty or thirty years, and the management rights such as project management, operation and maintenance are given to the private sector, the private sector will strictly control the quality of the project in order to reduce costs and obtain more profits, and wait until the deadline Therefore, when the government recovers the operating right from the private sector, the annual maintenance cost of facilities will be greatly reduced, thereby reducing the government's financial expenditure burden (Shasha Shi & Zhibing Chang, 2013;Li Hu, Weiguo Zhang, & Xiaosu Ye, 2011;Feifei Guo & Chengfeng Huang, 2019).

The PPP Model Is Not Only a Financing Model, But Also a
Management Model An SPV (Special Purpose Vehicle) implementing agency is indispensable in the implementation of any project. Generally speaking, the public sector and several private sectors together constitute the SPV (Special Purpose Vehicle) enforcement agency (Yanli Sun, Wanbo Liu, & Xinrong Liu, 2012;Xiaoguang Qiu, 2019). SPV is the source of funding for PPP projects, mainly including its own funds and funds from financing. Therefore, in the progress of the project, financing is mainly the responsibility of the private sector rather than the government. PPP is a new type of management model. During the long-term cooperation between the public and private parties, the resources held by the non-public sector can provide public products and services, so that the entire society's resources can be fully utilized.
At the same time, the macroeconomic effect of the government sector and the economic effect of the private sector are achieved.

Development of China's PPP Model
As can be seen from Figure 1, China's first successful PPP project was in 1985, and most of the PPP projects were distributed in the field of infrastructure. Later, during the operation of the PPP project, there were reasons such as imperfect laws, insufficient local government awareness, and unreasonable risk-benefit sharing.
The government issued a series of laws and regulations to make the PPP project operate better.

Number, Value and Distribution Areas of Projects in China's PPP Model
Since its adoption in China, the number of PPP models has been increasing. From

Distribution Areas of PPP Projects in China
As can be seen from Figure

Problems in the Macro Legal System
At present, most of the laws and regulations related to PPP in China come from various government ministries and commissions and some local regulation. These opinions, notices, and regulatory documents have low legal effects, and documents issued by localities and even lower levels conflict with each other. Most of these documents lack integrity and normative, it cannot provide strong protection for social capital investors. The legislation of relevant PPP projects is inconsistent with current laws due to its particularity. For example, in China, the land system

Inadequate Supervision and Management System in PPP Projects
PPP projects involve the interests of government departments, the private sector, and the public, especially the public's related interests. Without a reasonable and effective regulatory system, it is easy to happen to damage public interests. At present, China does not have an independent PPP model supervisory body to implement unified management of it, nor does it have intermediary organizations and relevant industry associations to provide powerful auxiliary support for PPP project control (Yan Li, 2018;Ao Liu, 2018). The lack of effective supervision at the social level has led to the lack of separation between government and enterprises and supervision unclear responsibilities, etc. Regarding a local PPP project supervision system, such management methods and guidelines are only used for a specific project, so the scope of this regulatory binding force is very narrow, and when there are problems with multiple projects, it is difficult to prescribe the right solution to the corresponding problem, which will cause public dissatisfaction and private sector concerns. The current PPP operation lacks a unified supervisory authority and still adopts a multi-layered management model, which will cause problems such as poor coordination, low regulatory efficiency, and large regulatory costs. In the process of implementing a PPP project, the Ministry of

Lack of Understanding of PPP Model by Governments at All Levels and in Less Developed Regions
Because some local governments do not have sufficient understanding of the PPP model, they have blindly adopted the PPP model to invest to reduce the pressure on local government debt. For example, the Hangzhou Bay Bridge, because the government is difficult to make effective adjustments to market changes quickly, at the same time the government will build many similar projects, and the construction of the project will cause commercial competition between the corres- Due to the small scale, low efficiency, and great damage to the ecological environment of these projects, the benefits of fee-based projects are generally poor, which is not conducive to attracting social capital injection and there is a "effect decay" in fee policies, but some PPP projects in these areas strong social welfare and high indirect economic benefits, it is even more necessary to introduce a PPP model to promote local backward infrastructure construction and economic development.
At the same time, because of the limited access to information in these areas, the application of the PPP model is rare. The current lack of momentum of the current PPP model is related to the inconsistent understanding of the PPP model among local governments. Due to economic development, limited funds, and insufficient managerial awareness, these underdeveloped regions continue to raise debts even when debts are high, and are unwilling to reach out to the private sector for cooperation. Most local administrations believe that PPP is only a financing model, and they fail to understand more deeply that PPP is also a financial innovation system. economic crises and other reasons will also unable to meet the government's commitments to investors at the beginning of the project, which will also generate credit risk. In addition, conflicts or incompleteness of relevant regulations in contract documents are prone to risks, causing losses to the private sector. For example, Failure to fulfill the uniqueness clause of the project will result in insufficient income and changes in market demand will also generate government credit risk. In summary, government credit risk can be caused by a variety of factors, such as economic crisis and changes in regulations and policies will lead to government credit risk.

Government Credit Risk in PPP Projects Is Relatively Large
From the perspective of the market, local governments' attitudes towards the PPP model are ambiguous, and social capital investors are worried about participating in PPP projects because of government defaults. Through the analysis of

X. J. Tan
PPP project data over the years, it is roughly known that the actual transaction rate of PPP projects is less than 25% 1 . For example, Shiyan Public Transportation Group Co., Ltd. is taken as an example of the "privatization of public transportation". After five years of operation, this case of market-oriented public services ended with the government taking over the bus companies. The main reason for the failure of the project is that the government is in a leading position during the later stage of the project. The local government has stipulated that bus fares cannot be increased, and the company was also required to submit a profit of 8 million yuan on time, which caused the social capital side to make ends meet, and finally the social capital side gave up the franchise right and became a permanent shareholder. The previous commitments on subsidies were also difficult to fulfill.

Unreasonable Income Distribution Mechanism
There are too many reasonable pricing mechanisms for private sector operations

Establish and Improve the Supervision and Management Mechanism Related to the PPP Model
Whether a PPP project can be successfully completed and whether future operations are smooth, the formation of a good supervision and management framework and the implementation of supervision capabilities are essential. As a formulator and supervisor in a PPP project, the government should pay attention to its role in the project, and establish a complete and systematic PPP model supervision and management institution to form a long-term and effective mechanism. The government's monitoring framework should take full account of the X. J. Tan links between administrative, social and project management. The supervision and management of PPP projects are quite different from those of ordinary projects. PPP projects are basically public investment projects that involve the public interest (Shanjun Liu, 2019;Yan Li, 2018). The government has the function of maintaining social benefits and the legitimate interests of the public, and must assume the responsibility of supervision and management of the entire project. One of the key steps for the PPP model to achieve significant progress is to establish an unimpeded information exchange platform and a complete and systematic supervision and management system. Establish a comprehensive evaluation system to connect government departments, the private sector and the public. At the same time, a full-cycle management mechanism of pre-examination, follow-up, and post-evaluation should be established to effectively improve the efficiency of the regulatory agency. Independence harmonizes the relationship between the government, the private sector, and the public to ensure that the benefits of the three are maximized. In order to publicize the entire process of project operation to the society in a timely and effective manner, the government should also establish a unified and complete information release platform to ensure the orderly progress of the PPP project and that the public can obtain the required information and effective supervision at the first time.

Establish a Specialized and Targeted PPP Management Agency
Under the unified guidance of a specialized PPP project management agency, it can not only reduce the operational risk of PPP projects, but also improve the efficiency of project operations. It can greatly reduce the problems of inconsistent pace of PPP project construction and chaotic operation of the project caused by the large number of management agencies, and can effectively reduce mistakes to improve accuracy (Xiaoguang Qiu, 2019). Among the specialized PPP management agencies, set up a dedicated PPP management office area, equipped with comprehensive talents such as law, finance, construction engineering, etc. Each PPP project requires fixed personnel to follow up and do other accidental remedial measures.

Formulate Reasonable and Effective Income Distribution Rules to Balance the Interests of All Parties
The public welfare and profitability of infrastructure should be strictly separated and recorded by the government in order to formulate a reasonable and long-term project income distribution mechanism. The PPP model is mostly applicable to for-profit projects, but rarely used for pure public welfare projects. The PPP model is mainly used by the government to make up for the limited financial resources and improve the efficiency of resource use (Shasha Shi & Zhibing Chang, 2013). The government and the private sector cooperate to implement infrastructure X. J. Tan various parties. Government departments should publish relevant documents related to PPP projects, while the private sector will announce the combination of construction, operation, maintenance, and market changes of PPP projects. In the process of PPP project cooperation, only when the parties understand each other's situation can they exert their biggest advantages. The government should establish an information sharing platform, including the collection, screening, analysis, and summary of project construction standards, legal systems, management systems, and project development information. Because PPP projects have the characteristics of long cycle, slow return of income, and most of the funds in the early stage of the project are funded by the social capital side, the social capital side bears more risks of uncertain returns than the government department.
Various factors need to be considered comprehensively before participating in project investment. The government should provide more information about the project within a reasonable scope of authority, so that the social capital side can make faster decisions, reduce its wait-and-see attitude, and strengthen its determination to participate in the project. At the same time, the private sector must also provide relevant information about the project operation, so that government departments can timely understand the situation and make corresponding adjustment measures to achieve a win-win situation.

Conclusion
The PPP model has incomparable advantages in China's current economic form, but there are also many risks. There is still a long way for China to achieve the transformation from a large government, a small market to a small government, and a large market, while the PPP model fundamentally requires the government to change its position and change from the sole provider of public goods to the partner and supervisor of the project, and strictly observe the spirit of contract. Therefore, it is necessary to adopt scientific methods for reasonable management, maximize the advantages of the PPP model, and promote the development of China's infrastructure construction.

Conflicts of Interest
The author declares no conflicts of interest regarding the publication of this paper.