A Government Subsidy Model for Expressway Public Private Partnerships Projects Based on Project Revenue Features and Whole Life-cycle Management

Abstract

Popularisation and application of Public Private Partnerships (PPP) model is an important measure used to deepen the investment and financing reform of China. The transportation industry actively explores and promotes the wide application of PPP models as they have injected new impetus into the construction and development of transportation investment. For PPP projects of expressways that are subsidised by government in the construction or operation period, since the traffic flow in the project construction period or the early operation period is low, the government subsidy is more concentrated and the payments are high, which aggravates pressure on the fiscal purse in the current period and is not conducive to the realisation of smooth fiscal expenditure in the project cooperation period. In this regard, aiming at the features of the investment revenue of expressway projects, a whole life-cycle government optimisation of subsidy mode is proposed through the analysis of the problems existing in the general subsidy mode of the PPP model in the present work. The results show that the proposed model can not only smooth government expenditure in the project's cooperation period, but also fully exploit the advantages of higher income in the middle and later stages of project operation and maximise the growth potential of government revenue. The results of the research can provide decision-making reference for the development of innovative PPP models for transportation infrastructure in the new Era.