Quantitative Assessment On Value For Money For Urban Utility Tunnel PPP Projects

With the acceleration of urbanization process,people are paying more and more attention to urban pipeline laying.The shortcomings of the direct buried method are constantly emerging,and the advantages of the utility tunnel have gradually known by people.The large amout of investment and the lack of government financial funds support has become one of the biggest difficulties in constructing utility tunnel project.In recent years,PPP(Pubilic-Private-Partnership)model has been an important financing mode to attract private capital into infrastructure construction.However,It is only one of the options to provide infrastructure products or services,the government should use a more scientific way to quantify the value of the PPP model,which can also be called 'value for money' or VFM.The main purpose of this paper is to construct a specific VFM quantitative assessment model for our country's utility tunnel project on the base of basic theory of VFM and specific characteristics of China tunnel project.First.this paper studied VFM evaluation theory and selected VFM calculation method though literature review;Second,It put forward the framework model of PPP assessment project through summarizing the basic operation mode and main characteristics of china PPP project of utility tunnel.Third,this paper calculated and analysed PSC and PPP value under this model,which formed a complete quantitative evaluation VFM model of the urban utility tunnel project.In addition,quantitative evaluation of VFM is usually affected by many factors,this paper choosed several key factors to make analysis,including the discount rate,risk identification,risk quantitative evaluation and risk sharing.About the discount rate,this paper analyzes the characteristics of the discount rate used in the quantitative evaluation of VFM in foreign countries,and finally select risk-free interest rate as the discount rate.About risk identification,this paper found 31 risk factors existing in china PPP project of utility tunnel though literature review,then used questionnaires for statistical analysis to identify the key risk factors.About risk quantitative evaluation,set-valued statistic method was used on the basis of the commonly used risk quantitative evaluation methods.About risk sharing,the paper puts forward the principle of risk sharing to explain china PPP project of urban utility tunnel.At last,this paper carried on the empirical research according to the specific data of G city,and applied the VFM assessment model to PPP project of urban utility tunnel of G city.It not only verified the applicability and feasibility of VFM quantitative evaluation model but also provided a scientific and quantitative method to our country's PPP project of urban utility tunnel.