Analysis of Return Mechanism of Smart Parking PPP Project

The return mechanism in the PPP model as the core clause of the PPP project contract is directly related to the risk allocation and return of the PPP project. In the PPP project, the common return mechanisms are divided into three categories: government payments, user fees, and feasibility gap subsidies. The main factors considered in setting up the return mechanism are whether the project output can be measured, appropriate incentives, and flexibility. , financing, financial capacity.

Smart parking PPP project reward mechanism settings are no exception. According to incomplete statistics, at present nearly 73% of parking lot PPP project return mechanisms pay for users, and only a small part is the feasibility gap subsidy and government payment. Then, in the smart parking PPP project, when determining the project return mechanism, how do you embody the above-mentioned major factors?

I. Project output can be measured

When it comes to whether or not the output can be measured, the first thing people may think of is heat supply, sewage treatment, garbage disposal, etc. The quantity and quality of the public goods or services provided by such projects can be accurately measured, and therefore it is decided that they can The use of user-paid and performance-paying reward mechanisms.

In the national PPP integrated information platform project library, we can see that most of the projects are packaged in multiple parking lots, and only a few are single parking lot projects. In the parking lot construction project, its main output should be the construction of parking berths. In addition to the construction of parking lots, some of the projects also carried out new or intelligent transformations of roadside parking berths. In the smart parking project, the project output includes some applications, system platforms, etc. in addition to parking berths. Whether it is a parking berth or a smart system platform, it can be accurately measured, the output can be accurately measured, and the income can be reasonably predicted. Therefore, the project can be determined based on whether the income can cover the cost of the project and a reasonable profit. The reward mechanism pays for the user or something else.

In the parking spaces on the roadside, the parking type is mainly temporary parking, so the method of calculating the parking fee on the roadside is hourly charging. A parking space is not parked 24 hours a day, so it is reasonable to consider the turnover rate of parking spaces and the different turnover rates of different parking spaces when estimating the possible revenue from parking on the roadside.

In the public parking lot outside the road, the type of parking is mainly temporary parking, daily parking, and monthly parking. Different parking types have different parking rates, and the overall vacancy rate must also be considered. In the public parking lot outside the road, the charges for different types of parking in different areas should also be different. Therefore, when estimating the income of a public parking lot, various factors such as parking lots and parking types should be comprehensively considered.

In the three-dimensional parking lot, the main types of parking are temporary parking, daily rental, and night-time rental. In consideration of the same parking rate, the overnight rental fee is generally lower than the daily rental fee. Similarly, off-street parking should be mainly used for day-time parking when considering off-street parking and parking spaces for main functions. Stereo parking is mainly used for long-time parking at night. Therefore, in estimating the daily parking fees, off-street parking fees are generally lower than the three-dimensional parking fees; when estimating the cost of night-time parking, the three-dimensional parking fees are generally lower than the off-street parking fees.

The smart parking PPP project has a clear output and a clear income calculation. When the income can fully cover the project cost and the reasonable profit that the social capital should obtain, the project return mechanism can be used to determine the user’s payment.

Second, appropriate incentives

A project's payment mechanism should be able to ensure that investors receive a reasonable return. If on this basis, the formation of appropriate and effective incentives, it is more conducive to ensuring project implementation efficiency and quality. For example, in the smart parking project, after the project has been operating for a period of time, the status quo of urban parking has changed, and when the phenomenon of uncontrolled parking has been reduced, the government can reward the project company.

Third, flexibility

Under the user payment model, in order to ensure that investors can recover the investment income, the project cooperation period is usually very long. Therefore, in order to better cope with the various situation changes that may occur during project implementation, certain changes or adjustments must also be set in the project. mechanism. For example, in the construction of smart parking projects, project companies can independently set parking fees according to market principles. When pricing needs to be adjusted, the government should coordinate adjustments.

Fourth, financing

At this stage, one of the important reasons why many projects can't be landed is because they don't have enough capital to invest. An important factor for financial institutions to judge whether a project can invest is whether there is stable cash flow. Although the user-paid smart parking PPP project does not have a stable income from the government's fiscal budget, the government guarantees that the project's minimum demand is equivalent to a predictable and stable income for the project, and it is also more beneficial to the project under conditions of considerable income. Increase the attractiveness of the financing parties.

V. Fiscal capacity

Most smart parking PPP projects pay for users, so there is no government operating subsidy expenditure, and the other part of the expenditure in the government's general public budget expenditure is also not a high proportion. In a smart parking PPP project where government subsidies and feasibility gap subsidy mechanisms are adopted in a small part, the financial sustainability of a project company depends on whether or not the project company can obtain payment in full and on time. Therefore, it is necessary to evaluate the government's financial sustainability in advance. The project should fully consider the availability of the existing financial sustainability, and also fully tap the source of revenue generated by the project. That is to say, considering the income from parking fees as the main income of the project, it must also consider the advertising revenue and the commercial area for sale. Wait for other income.