The VFM Evaluation Research Of The Road Network Engineering PPP Project G

With the development of new urbanization,the input of infrastructure is increasing gradually as well.As an important part of transportation infrastructure construction,road network engineering plays an essential role in improving people's quality of life,promoting economic development and improving road transport capacity.The Outline of the National 13 th Five-year Plan and other related policy documents also advocate that the investment in infrastructure construction should be increased.Thus,to respond the call and help the reform of urbanization proceed smoothly,the construction of urban infrastructure road network engineering is urgent.The current related VFM evaluation documents that PPP project involves do not offer specific explanation about the road network engineering,instead,they only give a general overview of the regular indexes.Hence,the further study of VFM evaluation for the urban infrastructure road network engineering PPP project has practical significance to the improvement of VFM evaluation in the future.The paper first theoretically analyzes the PPP project VFM evaluation respectively from the basic operation procedure of PPP,concept and connotation of PPP,and the key issues that PPP faces to summarize PPP mode.Meanwhile,the paper gives a general overview of VFM from its connotation,concept,evaluation method and operating procedures.Secondly,it sets Longnan County's road network engineering project G as the research object,briefly introduces the project,PPP operation mode and the selection of the financial index for the cooperation term.And it explains the features of the risks in road network engineering PPP project and how to identify the risks in details.Based on these,the paper sets up the suitable allocation framework which can share the risks in road network engineering,and lay the foundation for the establishment of the project VFM evaluation system.After this,the paper talks about the qualitative evaluation and quantitative evaluation of the core content of VFM evaluation.The qualitative evaluation is based on selected qualitative indexes,the weight of the indexes determined by the experts and the proportion of the result.In this paper,the selected indexes includes not only the indexes that VFM operation instruction rigidly prescribed,but also the accuracy of the whole life cycle cost estimation,law and policy,and industry demonstration.And nine experts scores and demonstrates the feasibility of the project.Once passing the VFM qualitative evaluation,the paper then does the quantitative calculation analysis.The core of the quantitative analysis is to solve the problem of difference comparison between PSC and PPP through the calculation.It is calculated that both VFM value and VFM index are positive,which means that to employ PPP mode in road network engineering can generate more value than to use the traditional purchasing mode,and that adopting PPP mode can be more efficient in saving costs,and arouse huge potential of the social capital sides.Thus,the project perfectly passes VFM quantitative analysis.At the last,the paper takes subsidies income,construction investment and operation costs as the sensitive factor to analyze the sensitivity.The results indicates that the construction investment and subsidies income have a great effect on the financial internal rate of return of the project,so the risk of the construction investment overruns should be specially controlled.The paper then selects different annual incomes and drop rates for financial calculation,and has different combinations of the total payment of availability service fees.The result shows that when the drop rate is the same,the more annual incomes grows,the more the availability payment difference is.In this paper,the research shows that project G roadnetwork engineering PPP project risk sharing mechanism is established to conduct value evaluation is of great significance,and value of qualitative evaluation of each index weight in the establishment and the quantitative evaluation of project risk cost estimates of the PPP project value evaluation of road network project play a key role.