Study on the Finance of the Suburban Railway in Beijing Based on PPP

With the expansion of city and real estate in Beijing these years, the excessive expansion has come out in the city center. There has been a certain extent suburbanization. Developing the suburban railway has become an important task. Based on the phenomenon, this article will research on the financing of suburban railway.First, the article reviewed existing research, focused the basis knowledge-the conception of suburban railway and the outline of financing, and summed up that suburban rail transportation is the development trend. Many scholars to promote the adoption of the PPP model as investment and financing mode.Second, the article focused the theory of suburban railway finance, introduced the concept of PPP model, and summarized the financing characteristics by analyzing some examples by big cities. Then the article pointed out the specialty of PPP in suburban railways.Third, the article focused the feasibility analysis of PPP in Beijing’s Suburban Railways from political, economics, finance and personal factors. From the analysis, we have known that Beijing’s suburban rail transport with conditions carried out in the PPP mode of financing. We also studied the capital return models. They were government subsidies, comprehensive development and tax incentives.Fourth, the article viewed on the Beijing Railway suburban line-Daxing Line. It tried to use the PPP mode to finance. Although this program ultimately could be used, but from which we can find some experience and need to be perfected. Investment and financing of the key points in the PPP mode as follows:(1) a reasonable return, risk allocation side are very important;(2) suburban rail traffic can use the "rail+land" as a return on capital model;(3) the relevant legal systems need to improve, as the protection of investment and financing to the laws and regulations.Last, the article made a conclusion and some advice:(1) changing the role of the government;(2) making some related laws and regulations;(3) setting up the professional bodies.