Study On Government Credit Risk Management In PPP Project

In recent years,China's economy has developed rapidly for a long time,and the process of urbanization has accelerated.China's infrastructure market has expanded rapidly and infrastructure construction is in full swing.The traditional government's full investment in the construction of public infrastructure has caused a heavy financial burden on the government;the infrastructure projects undertaken by the government generally have problems such as inefficiency,delays in construction period,operating losses,and extensive operational management.As a result,the government began to promote the government-Private-Partnership(PPP)model to solve the financing problems and construction management efficiency of infrastructure projects.However,the rapid spread of the PPP model has brought new challenges to the government and social capital,and the role and functions of the government have changed.In some of the PPP projects currently being implemented,the cooperation between the social capital party and the government is not smooth,and the government's failure to comply with the previous commitments and other untrustworthy behaviors poses great risks to the social capital parties and projects.In order to rationally control the investment risk of social capital parties,promote the smooth implementation of PPP projects,and realize the rapid,efficient and high-quality provision of infrastructure(public goods or services)by the government,the article conducts special research on government credit risk management of PPP projects:First,the paper analyzes PPP projects,government credit risk and risk management theory.The PPP project has the typical characteristics of risk sharing,benefit sharing and partnership between the two parties;government credit risk mainly refers to the possibility that certain actions of the government in the PPP project will cause losses to the social capital side.In order to manage and control government credit risk,the article elaborates three risk management theories: new public management theory,principal-agent theory,and political legitimacy theory.Secondly,the thesis studies the role of government,functions and government responsibility in PPP projects.The role of the government in the PPP project will be transformed from a leader,a decision maker,and an investor to a project collaborator,manager,and supervisor.At the same time,the government has macro-functions and micro-functions in the PPP project.The macro-function requires the government toreduce political risks,improve laws and regulations,improve industry standards,promote the promotion of PPP financing models,and train talents.Micro-functions require the government to provide support to project companies.Cooperation and supervision.Thirdly,the paper analyzes the performance and causes of government credit risk.The government credit risk in the PPP project has the promise of not complying with the government's direct payment or feasibility gap subsidy,non-compliance with supporting investment commitment,government funds cannot be timely,government refuses risk guarantee,project unique risk,policy change,government change,etc..The main reason for the loss of trust in our government is that the legal and regulatory system is not sound.On this basis,the article constructs a government credit evaluation index system,builds a government credit evaluation model,and calculates the comprehensive evaluation value of government credit risk as a preliminary basis for social capital investment decision.Finally,the paper takes the PPP project of the Y-city integrated pipe gallery construction as the research object,and tests the government credit risk model.Based on the untrustworthy behavior of the Y municipal government when participating in the project,analyze the risks caused by the construction process of the project,and build a credit evaluation model of the Y municipal government.The study found that the Y city government's credit level is still good,the government credit risk is controllable,and it can establish a good partnership with the social capital side to maximize the benefits.