What is the profit of ppp projects?

The optimization of profit structure of PPP project is the increase of wealth, including both monetary income and non-monetary income such as reputation enhancement and potential income. PPP projects can achieve profitability by optimizing the income structure.

When providing public goods or services required by the government, PPP project companies can generate more business by-products (such as advertisements and authorized use of intellectual property rights of architectural works) to make up for the financial infeasibility of the main product projects, such as the development of additional commercial houses in the price-limited housing projects in Guo Zhuangzi, Fengtai District, Beijing, and Huilongguan, Changping District, and the shops, restaurants, office buildings and garbage transfer stations for heightening toilets in Meizhou mode public toilets. The specific planning scheme can be proposed by the public * * * department, or planned by social capital and approved by the public * * * department.

When the infrastructure or public utilities provided by PPP projects are completed and the normal operation needs corresponding supporting services, the government can authorize PPP project companies to provide such supporting services (such as catering, property management, greening, etc.) that can generate expected benefits, so as to create cash flow and make up for the financial infeasibility of the main project by extending the value chain. The whole construction content of Beijing Metro Line 4 is divided into two parts: A (land acquisition, demolition and civil construction) and B (mechanical and electrical equipment procurement and installation). The Beijing Municipal Government only handed over part B (about 4.6 billion yuan), which accounts for 30% of the total investment, to the Hong Kong MTR Corporation Limited (a listed company controlled by the Hong Kong SAR Government).

Beijing Capital Venture Group Co., Ltd. (a local state-owned enterprise) and Beijing Infrastructure Investment Co., Ltd. (a local state-owned enterprise) jointly established Jinggang Metro Company (SPV), which is responsible for financing construction (namely BOT mode).

In addition, SPV is also responsible for the operation and management of Metro Line 4, the maintenance of all facilities (including Part A and Part B), the asset renewal outside the tunnel and the commercial operation inside the station. After the franchise period (30 years) expires, part B of the project facilities will be handed over to the Beijing Municipal Government free of charge, and part A of the project facilities will be returned to Beijing Metro Line 4 Investment Co., Ltd. (sealed by the trust store).

Kunming Bus Rapid Transit (BRT) system projects (including transportation hub stations, first and last stations, stations along the way, and bus stop signs) are large in scale, and the charges are obviously insufficient, which makes them unattractive to private capital.

To this end, Kunming municipal government adopts BOT-BT-TOT integrated financing mode: Company A is responsible for building special lanes (including the first and last stations and stations on the road), transportation hubs, transportation hubs, first and last stations and stations with large capital demand and good return on investment;

The part of vehicle purchase and intelligent transportation system construction with relatively small capital demand, no charging mechanism and short construction period is handed over to company B in BT mode: after the construction of company A is completed, the management right of dedicated driveway is handed over to company C through lease agreement; At the same time, after the construction of Company B is completed and repurchased by the government, the management rights of vehicle purchase and intelligent transportation system are handed over to Company C by the government. At this point, the whole BRT project was handed over to company C in TOT mode.

Packaging operation forms scale effect and reduces unit product cost.

In PPP projects, social capital needs to invest in a certain scale of construction, or purchase the property rights or management rights of the project for a certain period of time. Then, if the demand for public goods or services is too small, the capacity of PPP projects will be excessive, resulting in poor profitability of social capital or the need for government financial subsidies for the difference.

It can be seen that it is an idea to ensure the moderate scale demand of PPP projects, thus reducing the unit product cost.