Research On Risk Management In The Process Of Local Government PPP Financing

Government departments and social capital cooperate to carry out project financing,and the final way to realize resource complementarity is called PPP financing mode.For the government side,it can effectively solve the shortage of government funds.For the social capital side,they can have a novel investment channel.PPP financing can achieve the win-win goal of the government side and the social capital side to a certain extent.Urban infrastructure projects have invested huge,wide coverage,and participate in large number,etc,based on the situation,the project construction or put into operation,the possibility of encountering uncertainty is higher compared to the general project,therefore,may face all kinds of risk in construction period and operation period,and the project investor attention to the reasonable allocation of risk.For the present,urban infrastructure projects have invested huge,wide coverage,and participate in large number,etc,based on the situation,the project construction or put into operation,the possibility of encountering uncertainty is higher compared to the general project,therefore,may face all kinds of risk in construction period and operation period,and the reasonable distribution of the project investor attention risk problem.Based on this,based on the analysis of the characteristics of the government and social capital cooperation in the process of PPP financing in China,this paper points out that there are mainly problems in the financing of PPP projects in China,such as inaccurate positioning of the role of the government,unreasonable risk sharing mechanism,reliance on subjective experience in risk identification,and project quality reduction.The reason lies in the unclear function orientation and strong characteristics of local government,the profit-seeking of social capital,and the short practice time of PPP financing mode in China.For the government,it is necessary to establish perfect PPP laws and regulations,give full play to the functions of the government,improve the access mechanism of PPP projects and form effective supervision.For social capital,reasonable risk sharing requirements,payment of risk reserve and cultivation of more professional talents can ultimately improve the risk management ability in the PPP financing process of infrastructure in China.