Machanism Design For Risk Control Of Infrastructure PPP Project

With its extensive application, PPP model’s role in promoting economic growthand propelling social progression is more and more important. In recent years, the risklying in PPP model has become one of the focuses during the implementation of theproject participants. Since PPP projects in the field of infrastructure have features aslarge-scale, long cycle, numerous participants and so on, the risk in PPP projects,compared with traditional investment model, is more unpredictable and harder tocontrol. Therefore it has been a pressing problem that how to evaluate riskseffectively, share risks reasonably and handle risks scientifically.Firstly, it compares the concept of PPP model in infrastructure construction,discuss the background of PPP model and its adoption in foreign countries, thischapter analysis the risk characteristics, classification, identification of PPP modelcombined with traditional concept of risk. Then it describes the development of thePPP model in the field of China’s infrastructure, analyzing the causes and challenges.Secondly, taking freeway for example, this article establishes mechanism of riskcontrol for the PPP model. The process of risk control contains four aspects, includingrisk identification, evaluation, sharing and response. Basing on the characteristics ofthe PPP model risk identification,it identifies risk factors based on the highwayproject of the PPP model,which including political risks, legal risks, financing risks,natural risks, technical risks, completion risk, operational risk, market risk andrelationship risk. On the basis of the case studies and the expert rating, it establishes aindex system of risk evaluation and evaluates them by the fuzzy comprehensiveevaluation method,we can see that it is very essential for the weight of risk factors’sdetermination. The reasonable sharing of risk in the PPP projects is a critical factor forproject success or failure, and in Chapter four unit two it makes a primary study forthis. Finally, this paper proposes countermeasures for the key risks in PPP projects.In addition, this article also lists several cases of China’s PPP models, analyzes afew failing cases of the PPP, and educes many aspects for the failure reasons, whichare laws change, organizational coordination, financing risks, lack of market demand,inadequate operating income, the Government’s failing to compliance with credit andother risks. Then, Using risk control mechanism in Chapter IV for these is in order toavoid risks.Finally, Chapter VI summarizes this paper’s conclusions and puts forward somepolicy proposals to promote the smooth development of PPP model in China...