Case Study On Financing Risk Management Of The Tram PPP Project In S City

Starting from the second half of 2014,the state council and relevant ministries and commissions issued a series of encouraging policies,which enabled the PPP model to be promoted vigorously and local governments responded positively.At this point,China's PPP model entered the stage of full promotion and a large number of PPP projects were launched nationwide.As of the end of December 2018,the national PPP integrated information platform project management library warehousing projects totaled 8,654,involving an investment of 13.2 trillion yuan,of which 4,691 cumulative projects,the investment amount of 7.2 trillion yuan,landing rate of 54.2%.[2]However,while the PPP model is widely used in China,the social capital side participates in the PPP project on a large scale,and through the introduction of “clear stocks” funds,signing drawer agreements,etc.,the project capital financing,further increase leverage,leading to the project The financing risk is too high and there are a large number of non-compliant PPP projects.In 2017,in order to ensure the healthy and orderly development of PPP projects,the National Development and Reform Commission,the Ministry of Finance,and the State-owned Assets Supervision and Administration Commission successively issued a number of normative documents from the perspective of “control risk”.PPP projects entered a new stage of management and control,and project financing became more and more difficult.How to legally and compliantly carry out PPP project financing and prevent financing risks under the strong supervision environment has become a problem that enterprises must consider.The PPP project of the S city tram is a PPP project involving the central enterprise as a social capital party.This paper takes the risk management process of the central enterprise comprehensive risk management guideline as the analysis framework to study the financing risk management process and project of the S-city tram PPP project.Financing risk management effectiveness,summed up the project's six aspects of financing risk management experience: establish a high-quality,professional financing management team,strengthen the core position of project financing,clarify the government's fiscal expenditure responsibility,construct a scientific cash flow financial model,formulate a sound financing risk response strategy,and establish a good communication and supervision mechanism.The research results of this paper not only provide experience for other PPP project financing,but also have certain reference significance for the construction of other PPP project financing risk management system.