Project Risk Management For Public-Private Partnership Financing Mode

In the last half of the century, infrastructure construction has achieved great progress in China. However, it's still far from enough to meet the social and economy's fast development. In the "11^th Five-Year Layout", many provinces and regions have pointed out that the priority to the development of urban public transportation, the vigorous promotion of the rail transportation construction and the continue increase in the investment of urban metro construction. The developments of other public infrastructures, such as sewage treatment, gas supply, waste disposal etc. have also been given priority. However, government can no longer meet the huge demand of infrastructure constructions only by itself, because the large amount of issuing treasury bonds has increased the government's debt burden and debt risk. How to resolve this conflict has become the focus of attention.The PPP financing mode makes up the policy support of public department and the abundant fund, advanced management and rich managerial experience of personal department together, and this mode has already been applied to the infrastructure construction projects in practice. PPP projects have long concession term, broad affect areas, huge investment fund and complex relations between the rights and responsibilities, so PPP projects face a lot of risks and these risks are always the focal points which each participation cares about.First, this paper integrates the theory related to PPP financing mode and makes in-depth analysis on domestic and foreign PPP projects implementation and risk management. Based on this study, this paper points out the shortage of the status quo, so for providing the necessary knowledge and practical background for the following research. Second, this paper identifies PPP project risks through literature review and case study, and then develops a questionnaire of PPP project risk measurement to validate and gain the key risk factors with significant impact on PPP project. Then, apply factor analysis to classify the key risk factors by SPSS, and give detailed analysis. Subsequently, on the basis of risk-sharing principles and the balance between the each participant in the project, this paper analyzes and designs the sharing method of PPP project risk allocation. Finally, this paper puts forward risk management measures of PPP projects and the specific measures to deal with the key risks of PPP project.The research of this paper can not only give the supplement to the existing PPP projects' risk management theory, also can provide each participant the advisory opinion of PPP projects' risk allocation and risk treatment.