Research On Evaluation And Optimization Of Financing Efficiency In PPP Projects

In 2015, China's Development and Reform Commission promoted the PPP model by releasing two batches of referral projects with a total amount of 2125 projects and total investment of 3.5 trillion yuan. It showed that it becomes a compelling model introduced by our government to construct infrastructure by attracting social funds. For a long time in the future, it will be a general trend to apply PPP mode in various areas.However, the research on quantitative model of this new financing model is still limited, which leads to the lack of reliable theoretical basis for decision-making and implementation, especially in its financing efficiency research, which is a main feature and advantage of PPP financing model. A research about the evaluation and optimization of its financing efficiency will support the scientific application and popularization of this model.Based on the relevant theoretical study of PPP project financing efficiency and the analysis of features included in financing of PPP mode,this paper divides the research of evaluation and optimization of PPP project into three subtopics; they are evaluation of relative financing efficiency of PPP project financing project financing efficiency,simulation of the possible outcome of a specific financing schemes and optimization of financing strategy. In the study, the data envelopment method was used to establish the financing efficiency evaluation of the PPP project; the DEA and Monte Carlo simulation were employed to predict the possible results of the financing plan; the RO-GM model was established by combining the real option and game theory method, for achieving an optimal allocation of total investment taking uncertainties into consideration. And finally, the three sub models make up the systematic evaluation and optimization model for PPP project financing efficiency through integration.According to the application of this model, we can obtain an overall outcome contains evaluation of financing efficiency in specific PPP project, the target value of a financing plan, the probability distribution of the implementation result of a financing plan, the optimal amount of investment and its optimal allocation strategy. An effective application of the model in this research can be applied in different stages of PPP projects,and it is able to provide supports for decision with visual data.Further, the scientific method may brace the popularization of PPP mode by providing a theory and reference for its application.