Based On The Real Option Perspective Of Ppp Project Risk Assessment And Control Research

At present, China is in the stage of rapid urbanization development, besides a lot ofreal estate development and investment promotion outside, there still have amounts ofinfrastructure construction projects need to be developed, like roads, pipelinenetworks, power plants/power grid, water conservancy, school, hospital, etc. All thesepublic service facilities are traditional investment to build by the government, andowned and management operation by the public sector or the state-owned enterprise.However, due to the large amount and size of current national infrastructureconstruction, in addition to low efficiency, serious corruption, lack of supervision andrestriction of the traditional public sector, so it is facing serious challenges to relycompletely on public sector involvement in construction operation of infrastructureprojects, the financial, technical, efficiency and effect all too low. So all over theworld, there gradually developed kinds of pattern witch allow private investmentdepartment to participate in public infrastructure construction, In this paper, wecollectively referred them as PPP models project, because these particular modes areall related to the private sector and public sector participated in jointly; and the publicor private participants cooperating and sharing the risk in different kinds in order totake the development, construction and operation of the infrastructure project.PPP items due to long length of time spanning; large amount investing; Thecomplex and broad project scale, tasks, and scope; many participants and relatedparties involving of PPP projects. So the participants of this kind of project alwaysface very extensive and complex risk factors. How to effectively assess and controlthe PPP project risk is a very important research aspect for scholars home and abroad.There are many scholars also developed some quantitative risk evaluation techniqueand the corresponding control strategy, but through the learning and reference of anumber of literature at home and abroad, especially domestic project riskmanagement research fields, find that there are a lot of shortcomings. Although it is valuable of some risk assessment strategies, the actual operation is very complex, andplasticity is poor, and the cost is high.The real options thought of risk management can bring a lot of flexibility to projectmanagement, and can hold many good benefits of the risks, so as to increase thewhole value of the project. Based on the literature review and problems of theresearch in the first chapter, the direction and content of this study have determined,the PPP project financing mode, and risk management theory and real option theoryare discussed, points out the defects of the traditional project evaluation method.Based on these, a new framework of risk management that combining real optionswas brought forward; And has a classification of all the risk factors of PPP projectsaccording to the project process, general and specific risk factors; Summarizes somereal options maybe combination in all stages of the project life cycle. Combined withthe new build the framework of risk management, a real case has studied. It musthave must reference value for the risk analysis and evaluation risk managementdecisions of project management. In the end, the essay has a summary of this paper,and puts forward the insufficiency and the future research direction.