Research On Financing Risk Management Of Municipal Road Projects Based On PPP Mode

Since the Decision of the Third Plenary Session of the Eighteenth Central Committee of the Communist Party of China put forward in 2013 that "social capital should be allowed to participate in the investment and operation of urban infrastructure through franchising" mode,the PPP(Public-Private Partnership)mode of cooperation between the government and social capital has ushered in a new situation of development.Since then,the government has continuously issued relevant important policy documents,and the top-level design and policy leadership role is very obvious.At the same time,the market reaction is also very enthusiastic,using PPP mode to operate urban infrastructure represented by municipal roads in full swing.Municipal road PPP project has a large amount of investment,a high degree of financing demand,and the financing process involves the interests of the government,social capital,financial institutions,the public and other concerns.In practice,project financing faces more risks and challenges.In view of the universality and particularity of financing risk of municipal road PPP project,how to establish and improve the financing risk management system is the focus of attention of many social capital.This paper begins with the development of PPP model in China.Through literature analysis,it makes literature review and theoretical analysis in the fields of project financing and risk management,and expounds PPP model and project financing risk based on incomplete contract theory.Secondly,the characteristics of municipal roads under PPP mode are analyzed,and the risk matrix method is introduced to deconstruct the financing risk of municipal road PPP projects.Through risk identification and risk evaluation based on risk matrix,the common financing risks are classified,ranked and ranked,and the operational ideas and management system of financing risk management of municipal road PPP projects are put forward.Finally,through the actual project case,the financing risk of 13 new road PPP projects such as Guandu No.6 Road in Kunming City is analyzed in detail.The project risk matrix is drawn by the risk matrix method used in theoretical analysis,and the specific project financing risk management strategy is formulated,which verifies the rationality and operability of the project risk management system.This study provides some reference and reference for similar project financing risk management in the future.