Study On Financial Risk Management Of HY Sewage Treatment PPP Project

The PPP model,as a new form of cooperation,has played a promoting role in infrastructure construction in China.At present,environmental issues and water resource pollution have attracted attention,and their characteristics determine the feasibility of implementing the PPP model.PPP sewage treatment projects have the characteristics of huge investment scale,long investment cycle,and diverse stakeholders.Project participants face various problems throughout the entire life cycle of the project.If potential financial risks of the project are not identified and recognized in advance,and corresponding risk plans are formulated to respond,effective prevention and response measures may not be taken,and multiple parties may shift blame,ultimately leading to project failure.Therefore,correctly understanding and analyzing the financial risks that may exist in PPP sewage treatment projects,and formulating corresponding prevention and response measures,is one of the necessary links for the smooth implementation of PPP sewage treatment projects.This article takes the HY sewage treatment PPP project as an example to conduct financial risk management research on the project.Based on the current and later operational stages of the project,the financial risks of the HY sewage treatment PPP project are identified,including four aspects: fundraising risk,investment risk,cost overrun risk,and income allocation risk.These four aspects are further refined into 11 risk indicators.Summarize the risk management list of HY sewage treatment PPP project from both internal and external perspectives.Based on this list,use AHP Analytic Hierarchy Process to quantitatively analyze the financial risks of the project and calculate the weights of each indicator;Then use a fuzzy comprehensive evaluation model to calculate the evaluation score.After calculation,the financial risk of HY sewage treatment PPP project is between average and high.Based on the characteristics of the HY sewage treatment PPP project,and based on the calculation results,targeted response measures were proposed according to the degree of risk.At the same time,optimization suggestions were proposed based on the overall project,and further experience summary and outlook were conducted through this case.The identification,prevention,and avoidance of financial risks in the HY sewage treatment PPP project enrich examples of financial risk management,provide decision-making reference suggestions for all project participants,help project parties strengthen supervision of financial risks,and thus enhance the success of project cooperation.This study also has certain reference significance for the financial risk prevention and management of similar or similar PPP projects.