Study Of Risk Management For Yangzhong Economic Development Zone Project Based On The PPP Model

The PPP model not only alleviates the financial pressure of government departments,but also introduces advanced management and technical experiences,which can optimize the allocation of resources to the greatest extent;therefore,it's widely used in infrastructure construction.Because of the PPP projects' characteristics of large investment and long period length,the risks thereof are increasing accordingly.Thus,how to achieve the risk management of PPP project has become an important topic.Yangzhou City has implemented the national policy conscientiously and included the project of settlement housing for transformation of the shantytowns in Economic Development Zone into the Shantytown(Dilapidated Housing)Transformation Planning.And this project is performed in the PPP model.Based on the object of YZXC Economic Development Zone Project,this study of risk management of the PPP is carried on in three steps,incl.identification,assessment,management and control of risks.Identification of project risks in this study is conducted in two procedures:first,the risks are preliminarily identified through case analysis and project process analysis;second,through the questionnaire survey of the expert group,the aforesaid risks are refined for further accurate identification to obtain the risk indicator system,incl.14 risk factors in 6 categories.Analytic Hierarchy Process has been applied in assessment of the risks.The first step of this assessment is to establish a risk hierarchy model;the second step is to obtain the data through the questionnaire survey of the expert group,as well as to establish the judgment matrix at all levels.The third is to acquire index of weight of each risk factor through the single hierarchical arrangement and the total sorting method.After such assessment,it comes to a conclusion that risks on all the inflation,the contract,corruption,public-private relationship and force majeure are the most important factors of YZXC Economic Development Zone Project.Finally,the risks collected from the aforesaid identification and assessment are allocated by the principle of risk sharing;and the control scheme against the key risk factors is proposed.