Research On Risk Control System Of PPP Project

As a new pattern of cooperation between the government and social capital, PPP (Public Private Partnerships) is a product of social and economic development, and also is the strategic choice to broaden the avenues of funding for infrastructure projects, reduce the pressures of finance, improve the efficiency and quality of products and service, increase the income of private sector. With the accelerated process of urbanization, our country provides a good macro environment for the development of PPP model. Although the implementation of PPP model in our country is increasing in recent years, PPP model involves more complex subjects and faces many risks. So, how to effectively control the risks of PPP project is an urgent and practical problem.In order to provide a reference for the work of controlling PPP projects’ risks in the future, this paper aims to build an effective risk control system of PPP project, which contains the three parts, organizational structure, control system and risk control responsibility sharing. First of all, analyzing and studying a large number of domestic and foreign papers on the risks of PPP project. Then, giving a summary and an affirmation to the precious studies, and point out their deficiencies. At the same time, according to the special features of PPP project and its risks, five risks PPP project may face have been identified, which include construction risk, political, social, environmental risk, policy, legal risk, financial risk, market and operation risk. Secondly, the organizational structure and control system of PPP project were designed based on the project risk management theory, risk sharing contract theory, control theory and system theory. Besides, the partners risk control organization pattern, the main control system and support system also were put forward. What’s more, sharing the risk control responsibility of PPP project reasonably by using the responsibility assignment matrix and multi-dimensional control model. Finally, the article put forward some proper methods and strategies for controlling the five major risks of PPP project and combined with a practical example to verify its rationality.