Research On The Risk Identification And Quantitative Risk Analysis Of A PPP Project Financing Mode

The economic development of our country has entered the middle period for industrialization; the acceleration of its urbanization increases the demands of infrastructure and public utilities day by day. On one hand, government continues to be the leading factor of public project supply, which causes the serious deficiency of urban service public product supply for the inadequacy of financial resources; On the other hand, the rapidly development of private economy laid an important material and technological foundation for it to participate in the infrastructure project. And for the projects sponsored by the government, most of them belong to the quasi-profit and have the characteristics of both public beneficial and commercial. Under such a background, how to shift the social resources to put into public infrastructure construction, realize the broad participation of social fund under the guidance of the government, and change the simple financing mode relying on financial investment, become a problem to be solved urgently.PPP (Public Private Partnerships) mode as a new kind of project financing mode combines the advantage of government, private investor and the financial institution together, having lightened the financial pressure, has improved operation efficiency and service quality, and brought steady income for private investors and relevant financial institutions at the same time, so accelerating PPP research and application in our country has important theory meaning and practical value.Though there is extensive application of PPP mode abroad, PPP mode is still at the starting stage in our country. Because the infrastructure and public utilities constructions adopting PPP mode usually have the characteristics of long construction period, enormous investment, complicated financing structure, and numerous participant and so on, the projects often exist great risks. Valid risk identification and choosing the appropriate appraisal method to quantize the risk of PPP project, in order to take the counter-measure rationally, is the key of increasing the benefit of every participant. On the basis of consulting a large number of literatures, the research of PPP mode of this article mainly reflects in the following respects:On the basis of the connotation and characteristics of PPP mode and the comparative analysis of the common methods of the project risk identification at present, this article adopted the checking method to identify the risks of PPP project financing, identified the main risk factors of PPP project financing combining the concrete cases and view of experts, classified the risk factors into country risks, force majeure risks and particular project risks and divided the risks which can be quantitative further. Carrying on the summary of risk appraisal methods of the PPP project financing at present and the comparative study of the existing project risk appraisal methods, the article obtained relatively suitable methods for PPP project financing risk quantitative analysis, and proposed the rational risk sharing frame among every participant and counter-measure of crucial PPP project financing risks finally.