3.3 Public-Private Partnership
In order to deepen the structural transformation of cultural supply-side and innovate the cultural supply mechanism,China has begun to attach importance to guiding social capital to actively participate in cultural PPP projects in recent years.
PPP model(i.e.the cooperation model between government and social capital)is widely used in the field of public services in China.According to the participatory degree of social capital from small to large,PPP model can be divided into three categories:service purchase,franchise and equity cooperation.[20]Firstly,service purchase means that the government entirely undertakes project investment,and social capital is responsible for one or several functions(i.e.construction,maintenance and facility escrow)through entrusting operation and managing contracts.Secondly,franchise is the most common PPP model at present.The government authorizes through competition,and defines right-obligations and risk-sharing on agreements.Thirdly,equity cooperation refers to the transfer of shares of some state-owned enterprises to the private sectors and the establishment of a longterm“cooperation”relationship between the public and private sectors through the public welfare constraints stipulated in the contracts.
The transformation of PPP has been carried out for four years in China.According to the official data released by the Ministry of Finance of the People's Republic of China,the number of PPP demonstration projects and management repository projects in China have been increasing.As for PPP demonstration projects,by the end of December 2017,22 first-batch demonstration projects and 162 second-batch demonstration projects had been completely implemented,while 413 of third-batch demonstration projects had been implemented with the rate reaching 80.5 percent.At present,fourth-batch demonstration projects have not yet been approved and announced.Management repository projects refer to the project in the phase of preparatory,acquisition,execution and handover.At this time,the project has passed the evaluation of value and the demonstration of financial affordability.As for management repository projects,there have been 7 137 projects in the management repository by the end of December 2017,with an investment of 10.8 trillion yuan.From January 2016 to the end of December 2017,the number of projects in the management repository for each phase are shown in Figure 2 and the amount of investment is shown in Figure 3,with an average monthly increase of 245 projects and 364.3 billion yuan investments.
Figure 2 Monthly Variation of the Numbers of Management Repository Projects for Each Phase
The Ministry of Finance of the People's Republic of China has made statistics on three kinds of return mechanisms for management repository projects(that is,user-paid,feasibility gap subsidy and government-paid).By the end of December 2017,there were 1 323 user-paid projects with an investment of 1.6 trillion yuan,2 930 feasibility gap subsidy(i.e.,mixed government and market fee)projects with an investment of 5.9 trillion yuan,and 2 884 government-paid projects with an investment of 3.3 trillion yuan.As shown in Figure 4 and Figure 5,from January 2016 to December 2017,the proportion of the user-paid category in management repository projects had a downward trend,while the proportion of the feasibility gap subsidy category and the governmentpaid category basically had an upward trend.
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Figure 3 Monthly Variation of Investments for Each Phase（trillion yuan）
In the protection and innovative utilization of industrial heritage,the government can actively promote industrial heritage through historical exhibitions,art exhibitions and other forms in order to encourage signing projects and introduce private-sector funds and technology.In addition,the government can also set up investment funds for PPP projects of industrial heritage to promote the entry of a certain amount of private capital.
Figure 4 Variation of the Proportion of Management Repository Projects for Each Return Mechanism
Figure 5 Variation of the Proportion of Investments for Each Return Mechanism