The Study On The Financial Risks Management Of Public-private-partnership

Public-private-partnership(hereinafter referred to as "PPP")is an attempt to explore the new mechanism of public products and service provision.At present,there are different definitions of PPP mode at home and abroad and also various application forms of PPP.However,regardless of its definition and form,the risk allocation and risk management of PPP are the common issue that all parties need to take seriously.With the large-scale promotion and application of PPP,its fiscal expenditure responsibility can never be underestimated,which includesnot only the direct and explicit expenditure responsibilities of the PPP project,such as government fees and feasibility gap subsidies,but also other possible expenditure responsibility such as recessive or contingent expenditure,all of those expenditure may trigger PPP financial risk and should be paid great attention.Based on the hypothesis of the government's “dual subject”,the government under different subject has different management methods in the face of financial risk arising from the cooperation with private sector in PPP.What the writer studied in this paper is the financial risk management under the government's public subject.Financial risk management has risk management subjects,tools,procedures and other risk management elements.Government is usually regarded as the responsible sector of PPP financial risk management,but the government itself can be subdivided into the public subjectandthe economic subject.In this paper,according to the study of China's PPP development history,from eighties and nineties of the twentieth century when foreign franchisingfunctioned as the main form of BOT mode,to the first ten years of the twenty-first century when local government financing platform played as the main partner of the PPP,the government was often regarded as the economic subject while its role of publicsubject was often be neglected.Besides,in the analysis of PPP fiscal risk management issues scholars tended to consider the matter as it stands and Take put great weight in reducing the fiscal deficit and reduce government debt,in the risk management procedures often take the "one-size-fits-all" measures,in the management means there be many deficiencies.In the current PPP management work,the PPP financial risk management system has shifted the PPP financial risk to the concealedandcontingent which make the task of PPP financial risk management morearduous.In view of the current lack of PPP financial risk management in the management of the main body,procedures and means,this study is based on the reality rather than the general understanding of the general function of the government,starts from the analysis of government behavior rather than from the simple division of government and market.This paper analyzes the history and current situation of PPP's financial risk management in China and lists the contents,characteristics and effects of PPP's financial risk management before 2013,combining with the analysis of the main points of financial risk management at every stages of current PPP mode,concludes several problems of China's PPP financial risk management,including the PPP legal level be low and lack of binding;responsibility overlapping and conflict coexist among different government departments;fiscal management mechanism to be further improved;government governance capacity to be further improved.the paper then draw lessons from the international organizations in the PPP financial risk management,put forward four recommendations to improve China's PPP financial risk management system as followed: improve the PPP law and system construction;clear division between government departments in risk management;improve the PPP financial management system;improve government's governance ability.This paper tries to make some innovations on the theory and practice of the government's financial risk management in PPP,but limited to the author's theoretical knowledge and lack of practical experience,the study of the concept of PPP fiscal risk it is not thorough enough.For the three stages of financial risk management,Procedures and means of research has yet to be further improved.In the future,this paper will further enrich the theoretical basis of fiscal risk,strengthen the study of PPP financial risk management practices,and make the final proposal part more precise and concrete.