Research On The Financing Risk Control Of Local Governments In PPP Projects

Since 2014,The PPP project has sprang up in all parts of the country,Local governments have come to the PPP project.The project involves municipal engineering,transportation,ecological construction and environmental protection.By the end of 12 2017,The national government and social capital cooperation(PPP)comprehensive information platform includes 14424 PPP projects,The total amount of investment is 18 trillion and 200 billion yuan.Among them,there are 7137 management library projects and 7287 reserve list items.The overall scale of the PPP project being built at present in China is large.Because the PPP project has the characteristics of large scale of funds,long project cycle,many participants and complex structure,the PPP project has a lot of uncertainty in various stages,such as establishment,feasibility study,financing,design,construction,delivery and use,operation and maintenance and so on.Factors are easily influenced by many factors such as social environment,economic environment,engineering management and construction environment.PPP as a new project financing mode,risk control is the core issue of project financing.Because there are many participants in the PPP project,and there are different risks to the risk,the financing risk allocation protocol is complex,so a reasonable and powerful risk management is the key to the success of the PPP project.This article gives a detailed description of the risk management and financing risk management which should be focused on in the construction of the PPP project.The PPP project,which is operating in a county: is taken as an example to reveal that although there is a certain risk assessment in the early stage of the PPP project,the positioning and participation of the government and private investors in the PPP model are clearly defined.The risk control measures such as the principle of risk sharing and the multi-party demonstration of the local government's financial affordability,but for the billions of PPP projects,the county project is similar to most of the PPP projects in China,and there are some problems in the lack of feasibility demonstration of the project and the lack of third party supervision in the risk control.At the end of 2017,the Ministry of finance,the SASAC and the people's Bank of China have issued the PPP standard operating policies.More and more provincial financial departments have begun to carry out more stringent audit work on the PPP projects of the city and county departments.All over the country will strengthen supervision as the primary priority task of the 2018 PPP work.By the end of 2017,small and medium commercial banks had tightened their lending to PPP projects,and small and medium-sized commercial banks basically withdrew from the PPP project.Under this background,the PPP project,which is currently being built,should pay more attention to the financing risk of the PPP project,making the financing risk events of the PPP project less happening,and ensuring the funds of the PPP project to be in place,thus helping the PPP project to carry out smoothly.