Research On The Quantitative Evaluation Model Of The Value-for-money Of PPP Project

With the acceleration of urbanization in China,higher requirements have been put forward for infrastructure construction.It is difficult to meet the development needs by relying solely on government departments to provide public products and services.The PPP(Public-Private-Partnership)model emerged as the times require.Value for Money(VfM)evaluation is the basis for evaluating the feasibility of this model.Value-for-money evaluation is in the stage of development and implementation in China,while it has a mature application in western developed countries.This paper summarizes the quantitative evaluation methods of value for money of PPP projects in the United Kingdom,the United States,Canada and other countries and regions,combines the research and current regulations of Chinese scholars,and models the calculation of the quantitative evaluation model of value for money of PPP projects,and analyses the selection of discount rate and the estimation of risk occurrence probability.The current quantitative evaluation of the value for money of PPP project neglects the whole life cycle of the project,and only evaluates in the identification and preparation stage.This paper applies the quantitative evaluation of the value for money throughout the identification,decision-making,procurement,execution and transfer stages of the project,and implements the supervision mechanism in the whole process,and discovers the problems in the implementation process of the project in time and improves them to ensure the realization of value for money.In addition,the quantitative evaluation index of value for money has been added.PPP project has a long life cycle,which is greatly influenced by regional economic development.It is of great significance to add the analysis of regional economic development trends that are in line with the project life cycle length.Financial viability analysis is carried out from the perspective of different stakeholders of the project-government,social capital and project company to ensure the economic feasibility of the project.By analyzing and calculating the sensitivity of the key factors to the quantitative evaluation of value for money,the sensitive factors of the project are found out,and the control of the sensitive factors is emphasized.At last,the risk quantification model was optimized.According to the relevant provisions of error allowable value of investment estimation in each stage,considering that the identification and preparation stage of PPP project corresponds to the proposal stage of traditional project,the total risk cost is 30% of the construction and operation and maintenance cost.Analytic Hierarchy Process(AHP)is used to quantify the weight of risk,which combines quantitative analysis with qualitative analysis to make the distribution of risk weight more reasonable and increase the accuracy of evaluation.Optimizing the setting of risk sharing parameters and adopting improved 10-dimension expert scoring method for risk sharing coefficient can make risk sharing more reasonable and easy to operate.The results of this study show that the quantitative evaluation of value for money in the whole life cycle is conducive to project supervision and problem discovery and project control.The improved quantitative evaluation model system of value for money can greatly improve the efficiency and accuracy of evaluation results.