Abstract—The PPP project is being implemented in the background of the rapid development of urbanization in China. However, it is difficult to balance the interests of both public and private sectors, which is an obstacle to the development of PPP projects. This paper classifies the equity structure of the PPP project by using the ownership concentration. And then it uses the theory of financial governance to analyze the impact of different equity structures on public and private interests in PPP projects. Next, it uses the cost savings to represent the public interest through a mathematical model. On the basis of satisfying the public interest, to satisfy the private sector's economic benefits by making the private sector not benefit less than the opportunity cost or the required remuneration, and finally the equity structure of the PPP project can balance the public and private interests. Finally, the model will be applied to a specific case which is proved to be practicable. This paper aims to reduce disputes between the public and private sectors in the PPP project and to protect the interests of both sectors, which makes the PPP project proceed smoothly.
Index Terms— PPP, equity structure, public and private interests, cost savings.
The authors are with the Chongqing University majoring in Technical Economy and Management, Chongqing China (e-mail: yousiqiwork@163.com, whhou@cqu.edu.cn, 307001180@qq.com).
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Cite: You Siqi, Hou Wenhua, and Zhang Yuqing, "The Implementation of Building Information Study on Equity Structure of PPP Project Based on the Balance of Public Private Interest," International Journal of Engineering and Technology vol. 10, no. 4, pp. 341-345, 2018.
