Research On Financing Risk Identification Of PPP Traffic Infrastructure Projects In Laos Based On China's Capital Perspective

The improvement and coverage of traffic infrastructure,whether for a country or a certain region,has an obvious economic promotion.Since 2013 with the" One Belt And One Road” came out and promote capital output infrastructure “capacity output + resource input" has become China's future solutions to the supply side reform,and enhance China's influence in the world,which is one of the important means of public bodies to achieve global destiny.And Laos as bordering the southwest region of China,but also the "The Belt and Road" initiative in important countries along with China has long maintained a friendly close cooperative relationship.However,as one of the less developed countries in Southeast Asia and even in the world,Laos' s backward transportation infrastructure seriously restricts the development of Laos national economy.The Lao government also raise the level of transportation infrastructure,to accelerate the development of transportation industry put out in a very important position,and in public,repeatedly expressed the hope that the China Laos capital can enter the field of transport infrastructure,to catch the “One Belt And One Road" initial.However,transportation infrastructure projects generally need to invest a lot of financial and material resources.And at the same time,the operation period of the project is also very long,and the payback period of the project is also growing.Therefore,for the Chinese enterprises which intended to invest in the Laos transportation industry,the PPP model(i.e.,the public and private sector project cooperation)is undoubtedly the best choice.However,due to the traffic infrastructure project uses the PPP mode of investment generally exists large investment scale,numerous parties,organizations with complex relationship of objective factors,therefore,this project has the certain financing risk,facing the uncontrollable factors of the complex,especially for overseas projects.Based on the above background and industry theory,this paper discusses and analyzes the financing risks faced by Chinese enterprises in Laos transportation infrastructure PPP project,identifies and processes them,aiming to provide suggestions and help for these enterprises through research.Through the present our country enterprise investment in Laos,especially investment in transport infrastructure using PPP mode,there are found to play a single channel,the local government functions in the process of PPP project financing in the absence of the problem of high cost risk.Subsequently,the financing risk of the Laos transportation infrastructure PPP project was identified.This part from two aspects of system risk and non-system risk,according to the practice of investigation and expert scoring,and using the analytic hierarchy process,the PPP project financing risk model,get the weight and ranking of the various risk indicators,find the maximum of PPP project financing risk is political risk.Laos is still immature due to the immature market economy.The social financing platform has yet to be developed.In the initial stage of PPP mode,the role and function of the government will be pushed down,and it will also become the main body of financing.Laos as a socialist country,the general risk and credit of the government is too small,but because of the problem of corruption breeding,and no specific laws and regulations of PPP constraints,the government probably is conducive to their own interest over intervention in transportation infrastructure construction financing process.Through the author's field survey data in Laos,this paper analyzes the financing mode of the freeway in Laos from Vang Vieng to Vientiane.The risks and suggestions of the financing of the project are obtained.The project is invested and operated by the Yunnan construction investment group,using the BOT investment model in the PPP model,planning the construction period for 3 years and the operation period of 50 years.Finally,the theoretical basis at home and abroad based on PPP financing pattern,starting from the whole process of Laos financing environment,the risk identification and the risk evaluation framework of risk factors existed in PPP financing project identification,the results obtained by using AHP model for risk evaluation,finally draws the following conclusion: first,the present stage of Laos domestic transportation infrastructure is backward,from the perspective of China's enterprises,Laos traffic infrastructure investment in a larger space,there is considerable potential for development;two,the Lao domestic market level is very low,the financial industry is backward,unable to make full use of private capital,the current situation of the financing to a large extent on the Chinese enterprises by PPP model financing challenges.Three,the relevant laws and regulations from the PPP perspective,the Laos legislation is not perfect,the lack of effective norms and constraints,but also no relevant laws and regulations for the transportation infrastructure PPP financing mode,enhance the use of PPP mode of financing difficulty and risk.In view of China's enterprises in the use of PPP financing mode to enter Laos transport infrastructure in the process,how to reduce the financing risk,this paper gives the following suggestions: first,establish a sound financial risk management system.Two,actively take the way of risk sharing and sign the terms of the contract with the parties involved.Three,to establish a good cooperative relationship with the Laotian government.Four,optimize the structure of funds and make appropriate financing decisions.