The economic effect analysis of PPP model in urban rail transit — Illustrated by the London Underground and Beijing Metro Line 4

Abstract

Public Private Partnership is a new financing model and has been used in constructing public facilities. In this way, government attracts social capital to reduce the financial burden, enterprises earn revenue through private investment, and both of them ultimately achieve a win-win outcome. However, successful implementation of the PPP model requires us to balance many factors. This paper analyzes the failure of the London Underground PPP project and the success of Beijing Metro Line 4 and makes some suggestions, hoping that it can be served as a reference for the implementation of PPP projects in the future, better promoting the construction of public facilities.