Research On Grade Evaluation Of PPP Financing

Public private and partnership(PPP)financing has become more and more widely used in public infrastructure and utilities,and PPP projects have the characteristics of large scale,long period and complex participation.The PPP mode has a rapid development in our country under the circumstances that the strong policy of the government drove,but the PPP project landing rate is low,the social capital in PPP projects is dominated by state-owned enterprises,and the real social capital is a handful of the PPP projects,moreover,lack or poor of the credit of local government,or default or the performance not in place of the local government,is the major factor which leads to the ultimate failing of PPP projects,blocking the development of PPP in China,and the PPP financing grade rating system has not been established,so it is necessary to evaluate the grade rating of PPP financing.This study makes ratings for the PPP financing from subject and object on the basis of public goods theory,project financing theory,life cycle theory and management theory of project risk,and through theoretical review and qualitative and quantitative analysis,to make social capital more involved in PPP projects.Firstly,based on the current situation of PPP mode development,puts forward the project grade rating problem of PPP financing.Secondly,defining the concept of PPP financing and grade rating,and make literature review from PPP mode and grade rating,in addition,has also introduced the theoretical basis and related research methods of this study.Thirdly,this study rated from subject rating and object rating: Subject rating thinks of Moody's rating evaluation,and taking the specificity PPP project into account,structured the system of evaluation index about the credit evaluation of local government in PPP projects.Employed factor analysis and support vector machine(SVM)evaluating the credit evaluation of local government of 31 districts from three aspects which are economic development,fiscal balance and institutional environment,and synthesized the results of factor analysis,support vector machine and Beijing Thinktank Bank Investment Consulting Co.LTD,classified the credit of local government into investment grade and speculative grade,and analyzed the main factors that have an impact on credit level of local government;Project rating described the active process of project phase(project identification,project preparation,project procurement,project execution,project handover),identified the risk list of full life cycle,and then integrate PPP project activity process with project risk to build a rating system for each phase,and used the project rating tool to grade each stage,the weight of each stage is determined by the hierarchical analysis,and then the grade of PPP financing is determined.Finally,on the basis of subject rating adjusted for the grade of PPP financing,and through case analysis achieving the grade of object and PPP financing,and provide decision-making reference to improve government credit grating and object grating.