Study On Risk Management Of Local Government PPP Project

The PPP model has been introduced into China since the 1980s,which has experienced the various developing stages including the preliminary exploration,rapid development,and constant adjustment to normative development.During the course of its development,it accumulated a lot of experience and it also learned many lessons.At the beginning of 2013,the PPP model in China was promoted to a new strategic height with the local governments promoting the construction of PPP projects.For a time,the PPP market presented a prosperous scene.From the previous experience,the key to the success of the PPP projects depends greatly on the the quality of the risk management.However,according to the practice,PPP project management subjects,especially the local government subjects have weak risk management capabilities and awareness which directly leads to the failure of many PPP projects.Therefore,it is necessary to start from the perspective of local government to study its problems in PPP project risk management,and strive to find improvement measures in order to truly apply the positive effects of the PPP model to improve public governance of public products and services.This paper studies the problems of risk management of the local government PPP project from the following five parts.The first part explains the background,significance of the topic and the research status in the academic circles at home and abroad.It points out that the current PPP mode is widely used in China and becomes the research hotspot in academia,but the research on risk management of PPP project is very limited from the perspective of local government.The second part explains the concept,characteristics and theoretical basis of risk management of PPP project.Based on the definition of PPP,the government risk management and the project risk management,the concept of "local government PPP project risk management" is clarified.The characteristics of risk management including decentralize,diversity,stage and fuzziness of PPP project are summarized.The theoretical basis for the risk management of PPP project of local government is found.That is the new public management theory,principal-agent theory,project risk management theory and operational mechanism of public crisis theory,which provides theoretical guidance for the local government management practice.It is determined that the "local government" refers to the municipal and county level in this paper.The third part teases out the relevant theoretical knowledge of local government PPP project risk management from three aspects:risk management subject,risk management category,and risk management tools.From the perspective of macroscopic and microcosmic management,this paper analyzes the responsibilities of the local government in the different stages of PPP projects,and figures out the organizational structure of the local government PPP project risk management.In combination with typical cases,this paper focuses on analysis of the risk category of law,government decision-making errors,the verbose decision-making,corruption,public opposition,credit and other government-level risks.The tools of risk management are explained in terms of the risk identification method,the risk factor assessment and the risk response style.The fourth part examines the practice of local government in PPP project risk management.It also clarifies the current situation of multiple and cross-over roles that the local government played in the PPP project risk management as a decision-makers and reviewers,participants and managers,authorizers and overseers,and client and agent.It points out that the local government has some practical problems in PPP project risk management,such as the weak awareness of risk management,the poor risk management mechanism and the shortage of risk management personnel.Then it explains the reasons of the problem from the following aspects:legal environment,mechanism construction and talent management.The fifth part introduces the experience of the development of PPP mode in Britain,Canada,Australia and Japan,and the enlightenment to the development of PPP mode in China.The sixth part puts forward some thoughts on improving the risk control ability of the local government PPP projects based on the previous studies.Firstly,we should speed up the top-level legislation and promote the implementation of PPP special laws to ensure that the local government has the suitable law to support and reduce the frequent changes in policy.Secondly,improve the local financing channels,promote the asset securitization of PPP projects,and accelerate the asset conversion cycle of PPP projects.Build the government credit assessment mechanism and include the government credit behavior into the daily performance appraisal.Thirdly,strengthen the training of professional talents for PPP projects within the government,and combine internal training with external recruitment.To realize the mode of joint cultivation of government,enterprises and schools.At the same time,it cultivates the development of third-party professional consulting institutions.Finally,we will improve the PPP supervision system and form an open and transparent supervision mechanism involving government supervision departments,investors,the public,the experts and the media.The conclusion points out the positive significance of the PPP mode and the challenges in the future.It standardizes the development of PPP mode and strengthen the urgency of the construction of risk management and control capacity of local government PPP projects.It further explains the limitations of the thesis,and looks forward to the good prospect that PPP mode improves public governance capabilities in China.