Research On Financial Risk Of Expressway PPP Project

In the past ten years,the national economic construction has been in a period of constant transformation.The problems of local government debt management and government debt pressure left behind during the period of rapid development need to be resolved as soon as possible.Therefore,the state vigorously promotes the application of the PPP model.However,China has just started to use this model,theoretical research and practical experience are lacking.Meanwhile,the government does not have much experience with financial risk management and control methods.This leads to some projects in China that use the PPP model to fail,making the PPP model.The participants suffered a certain loss.In response to such a situation,the state has increased capital investment in highway construction projects year by year,aiming at solving the problem of financial risk management and control combined with highway and PPP modes.Therefore,in order to further strengthen the financial risk control of the highway PPP model project,this paper takes the PPP project of the ZH Expressway as an example to study the financial risk of the highway PPP project,hoping to provide some effective for the final success of the highway PPP project in China.Theory and experience reference.This paper firstly reviews the domestic and foreign researches on the financial risks of PPP projects,and then expounds the related concept theory in the financial risks of PPP projects.At the same time,the financial risk of highway PPP project is compared with the financial risk of the general project,and the financial risk difference between different types of projects is found out,which lays a theoretical foundation for the following.After the paper,based on the financial risk research of PPP projects at home and abroad,this paper uses the combination of financial risk theory research and concrete actual case analysis to analyze the financial risks of the ZH Expressway PPP project.The project has a high loan ratio,long investment return period,resulting in large financing risks and investment risks.The single source of income may lead to project losses,insufficient compensation for land acquisition and demolition,easy construction delays,construction costs,and potential natural disasters.The economic loss of small projects and the financial pressure risks caused by economic changes,and the main reasons for the problems are the failure to comprehensively and accurately assess the external risk impact,the insufficient attention to the potential risks of financial risks,and the financial personnel.The quality and financial risk personnel requirements do not match.Finally,in view of the above specific problems,the project company can choose the insurance fund investment method to raise funds,expand the income source of the highway PPP project,strengthen the cost control in the company’s highway construction process,and improve the evaluation of the potential financial risk.It is also necessary to strengthen the supervision of financial risks and establish optimization suggestions for PPP project management teams with professional capabilities.