A Case Study On The Risk Management Of Luoyang Ancient City Protection PPP Project

In recent years,PPP mode,an important solution to the problem of insufficient funds for public services provided by the government,has witnessed rapid development.Especially since 2014,public-private joint programs centering on PPP mode has displayed development in an explosive manner both in the number of projects and the fields involved under the support of government policies.Some problems,for example,explicit project equity and real debt,blind project management by officials in pursuit of political achievements,and unclear division of contract rights and responsibilities,give birth to difficulties throughout the process,which distorts the smooth development.In order to settle these problems,corresponding risk management schemes were formulated at the initial stage of researches,respectively.The actual effects of these risk management schemes as well as the remaining risks,nevertheless,are not accompanied by follow-up studies.By means of methods of literature research and case analysis,this paper studies the risk management case based upon PPP project of the protection of Luoyang ancient city.Firstly,it sorts out the relevant literature at home and abroad as well as the related concepts and theoretical foundation of PPP.Then,taking Luoyang ancient city protection project as an example,this article introduces the operation mode,implementation process and status quo of the risk management of the PPP project of Luoyang ancient city protection.Next,this paper analyzes the project risk management,extracts relevant experience such as coordination among departments throughout the project implementation process,employment of professional construction teams,adoption of robust patterns of investment,and raise problems of incomprehensive identification of potential risks,imperfect contract performance,non-standard notification procedures and undiversified capital exiting channels.Finally,combined with the current development of PPP mode and policy regulation related,effective solutions such as more comprehensive and reasonable risk factors identification,more sufficient preparatory work for contracts,more standard approval procedures in each stage,more diversified capital exiting channels,are put forward,all of which are expected to provide an excellent reference for other similar PPP industrial development of China.