A Study On The Risk Management Of The Construction Investment Company In Z City Participating In Highway PPP Project Construction

For a long time,local investment and financing platform companies undertake the important task of local infrastructure construction,which has made great contributions to the urbanization process and local economic development in China.However,with the rapid growth of the number of platform companies,the scale of platform companies being in debt has gradually expanded,the financing guarantee behavior is not standardized,and the corporate governance structure is chaotic,all of which aggravates the local debt crisis and financing difficulties of the government.Facing this situation,the state issues a series of policies to standardize platform companies gradually.According to Document No.43,government financing functions have been spun off from platform companies,which changes the original intention of setting up platform companies,therefore,the business scope of platform companies has been restricted which leads to their transformation.As a widely recognized financing mode in developed countries,PPP mode has developed rapidly in China recently.The state actively encourages private capital to enter the field of public utilities construction,which not only helps to reduce the financial burden and makes project construction more efficient,but also further expands the scope of private capital access and promotes economic development.Under this situation,platform companies actively participate in PPP projects to achieve transformation.However,due to the immature development of PPP model in China,there are not references for platform companies,therefore,during the process of project implementation,they encounter different risks,which affects the landing and normal operation of the project.This paper takes the Construction Investment Company in Z city as the research object.Firstly,basing on the theories of platform companies,PPP mode and risk management and by introducing the Construction Investment Company in Z city and a highway PPP project in which it participates,the author consults experts in the field and managers in the company,identifies the internal and external risks of the Construction Investment Company in Z city in the process of construction of this project by combining relevant cases,makes a final list of construction risks of highway PPP project of the Construction Investment Company in Z city,and analyzes the individual risk factors.Secondly,on this basis,the risks of highway PPPproject have been evaluated by AHP hierarchy analysis and the importance of risks has been determined.Finally,combined with the results of risk assessment,this paper makes risk response measures for the Construction Investment Company in Z city,which effectively prevents project construction risks and ensures the smooth progress of project construction.Through the research on the risk of the Construction Investment Company in Z city participating in highway PPP project construction,this paper aims at standardizing the risk management process constantly and improving the risk management level of the Construction Investment Company in Z city participating in PPP project so as to play a positive role of platform companies in PPP project better and promote the healthy and orderly development of PPP mode.