PPP, also known as PPP mode, that is, the cooperation between government and social capital, is a project operation mode in public infrastructure. Under this model, private enterprises and private capital are encouraged to cooperate with the government and participate in public infrastructure construction.

PPP provides services in the form of market competition, mainly focusing on pure public and quasi-public fields. PPP is not only a means of financing, but also a system reform, involving administrative system reform, financial system reform and investment and financing system reform.

Extended data:

Standardize and orderly promote PPP

1. Strengthen demonstration and guidance, optimize resource allocation and stimulate market vitality.

PPP is one of the important means to promote economic development, which has been adopted by more and more countries in the world.

2. Strictly abide by the bottom line of financial affordability and resolutely curb hidden debt risks.

The guidance issued by the General Office of the State Council emphasizes that it is necessary to prevent and resolve the hidden debt risks and financial risks of local governments, and it is strictly forbidden to provide illegal financing guarantees, and it is strictly forbidden to borrow in disguised form in the name of government investment funds, cooperation between the government and social capital, and government purchase of services.

In terms of preventing and resolving local government debt risks, the Ministry of Finance explicitly requires that the financial expenditure responsibility of PPP projects be assessed and controlled in an overall way, and the annual expenditure responsibility of PPP projects arranged from the general public budget shall not exceed 10% of the general public budget expenditure.

Baidu encyclopedia -PPP

People's Daily Online-How to Make PPP Work (Focus on High-quality Development)