PPP mode has the following advantages. Based on these, we can understand why we should increase our efforts to promote it.
1 to avoid cost overruns.
The participation of private organizations in government infrastructure construction means that both parties participate in the construction of the project and can play a supervisory role in each other. And only when the PPP model is completed and approved by the government can private organizations benefit. PPP mode is helpful to improve the efficiency of project construction, reduce the project cost, and avoid the risk of project funds.
2. Reduce the economic burden
PPP mode can make the government avoid heavy work and have more time to supervise the implementation of basic projects, which not only ensures the quality of projects, but also reduces the government budget.
3. Mutual benefit * * *
PPP mode enables the government and private organizations to learn from each other's strong points, give full play to their respective advantages and make up for each other's shortcomings. Both sides can form a win-win situation.
4. Reasonable risk allocation
PPP realizes reasonable risk allocation in the initial stage of the project, and the government shares some risks. Thereby reducing the risks of contractors and investors, and also reducing the financing difficulty of the project. It means that the investment risk of PPP projects is shared by the government.