Research On Investment Valuation Of The PPP Mode Of Urban Rail Transit Project

In order to speed up the urbanization and solve the urban traffic congestion, domestic cities have increased the investment on construction of urban rail transit, the former to the investment of urban rail are based on the local government as the leading factor, but at the same time, the huge fund demand of urban rail projects had a huge burden on their finances. In the face of this problem, the government introduced the franchise rights financing mode, especially the PPP mode in the process of urban rail transit project financing.The PPP mode refers to the government (Public) and Private organizations (Private) in order to build a project and form a Partnership between each other type (Partnership) cooperation mode. The PPP model is to help government departments to solve the huge financial pressure, also to private organizations was a great investment opportunities.Huge investment amount, investment payback period is longer than the other; Corresponding investment decisions has the irreversibility, cash flow uncertainty and timing selectivity, urban rail transit is compared with other infrastructure PPP project is the basic economic characteristics. Traditional investment evaluation methods (such as NPV method) in the evaluation of urban rail project value, mainly based on cash flow to determine the conditions of the discount cash net present value method (NPV method), the PPP in urban rail transit project to evaluate investment value analysis tend to overlook the basic economic characteristics and interaction, so it is concluded that the evaluation results of the real effectiveness obviously inadequate. And real options method good to overcome the deficiency of the traditional method, realized the irreversibility and the uncertainty of the project, considering the flexible management activities.Based on urban rail project economic characteristics of PPP mode caused by the traditional evaluation methods can’t grasp its true value as a starting point, the traditional investment evaluation methods are compared with those of the real option method. Characteristics of PPP mode of urban rail project and analysis the characteristic applies real option method, find that both are the three major in common, has been clear about the use of real option method to evaluate the feasibility of PPP in urban rail transit project value. Based on the economic characteristics of the PPP projects of urban rail transit, apply to the PPP mode is constructed urban rail project of fuzzy real option, points out the potential value of the project under the condition of uncertainty environment, finally by Q city rail transit line no.2 the PPP project example of the model is verified. Real option method is suitable for the uncertainty of environment of investment activities, it can comprehensive consideration irreversibility, management flexibility and uncertainty of the PPP mode value of the impact of urban rail project, it can help the private organization more accurate assessment of the potential investment value of the urban rail transit construction projects, the overall better grasp the investment opportunities, to prevent missing good investment opportunities.