2, effectively overcome the design, procurement, construction of mutual constraints and mutual disconnection of the contradictions, is conducive to the design, procurement, construction of all phases of the work of the reasonable convergence, effectively realize the progress of the construction project, cost and quality control in line with the construction contract agreement to ensure that a better investment benefits.
3, the main body of responsibility for the quality of the construction project is clear, conducive to pursuing the responsibility for the quality of the project and determine the bearer of the responsibility for the quality of the project.
4, eliminate cost overruns. Public **** sector and private enterprise in the initial stage of the private sector and the government **** with the participation of the project identification, feasibility studies, facilities and financing and other project construction process, to ensure that the project is technically and economically feasible, to shorten the cycle of preliminary work, so that the project costs are reduced.
The PPP model only allows the private sector to start earning revenue when the project has been completed and approved for use by the government, so the PPP model is conducive to improving efficiency and lowering project costs, and is able to eliminate the risks of project completion and capital risks. Studies have shown that PPP projects save the government sector an average of 17% compared to traditional financing models, and the construction schedules are all completed on time.
5. It is conducive to transforming government functions and reducing financial burdens. The government can get out of the heavy affairs, from the past infrastructure public **** services provider into a regulatory role, so as to ensure the quality, but also in the fiscal budget to reduce the pressure on the government.
6. It promotes the diversification of investment entities. The use of the private sector to provide assets and services can provide more funds and skills for the government sector, promoting the reform of the investment and financing system. At the same time, private sector participation in projects also promotes innovation in project design, construction, facilities management processes, etc., improving efficiency and disseminating best management concepts and experience.
7. The government sector and the private sector can complement each other's strengths and make up for each other's weaknesses by utilizing the respective strengths of the governmental public*** and private institutions. Both sides can form mutually beneficial long-term goals and can provide high quality services to the public at the most efficient cost.
8. Enabling the integration of all parties involved in the project to form a strategic alliance plays a key role in harmonizing the different interest objectives of each party.
9. Risk allocation is reasonable. Unlike BOT and other modes, PPP can realize risk allocation at the early stage of the project, and at the same time, because the government shares part of the risk, so that the risk allocation is more reasonable, reducing the contractor and investor risk, thus reducing the difficulty of financing, and improving the possibility of successful project financing. The government also has a certain degree of control while sharing the risk.
10, a wide range of applications, the model breaks through the introduction of private enterprises to participate in public *** infrastructure project organization of a variety of limitations, can be applied to all types of municipal utilities such as urban heating and roads, railroads, airports, hospitals, schools, etc.