By Yang Guangpu, Meng Chun, Zhao Yangguang & Du Weiping, Research Team on “The Application of PPP Mode in the Infrastructure Construction of the Countries along the Belt and Road Routes”, DRC

Research Report Special Issue No. 14, 2017 (Total 1538) 2017-3-28

Abstract: The public-private-partnership (PPP) mode could give strong backing to the infrastructure construction of the countries along the Belt and Road routes and China and these countries could benefit from each other’s strengths. But it should be noted that the countries along the Belt and Road routes are also facing some risks and challenges relating to the infrastructure construction in the political, economic, social and other fields. This paper gives an analysis of the pilot practice of infrastructure construction in those countries along the Belt and Road routes and summarizes their main experience in terms of project selection, financing mode, risk sharing and profit model. In order to promote the infrastructure construction with PPP mode, this paper comes up with four policy options. 1. We need to arrange the construction projects in a sequence and make an assessment of the projects in line with their urgency, importance, feasibility, necessity and effectiveness 2. It is necessary to obtain financing support and promote the diversification of financing entities and financing channels. 3. Efforts need to be made for risk sharing and relevant countries need to comprehensively respond to business risks, political risks and force majeure. 4. We need to make proper business plans so as to achieve mutual benefit and win-win results.

Key words: the Belt and Road Initiative, PPP mode, practical experience