Research On Investment Decision Of PPP Project Of China Railway S Bureau

With the comprehensive advancement of China ’s urbanization process,a large number of urban infrastructure and public service facilities have been introduced into investment,and local governments as investors have accumulated huge debts.In response to this bad situation,the state introduced a ’ Budget Law(Amendment)’ in2014 to limit local government financing initiatives,while vigorously promoting the PPP model to solve financing problems.S Bureau of China Railway Construction as a central enterprise,is also actively involved in the PPP project investment and construction.With the issuance of No.192 document of the State-owned Assets Supervision and Administration Commission in 2017,the PPP model is limited to a certain extent.How to select the best and make reasonable investment decisions for PPP projects has become an indispensable part of the smooth development of PPP projects by central construction enterprises.In this paper,taking China Railway S Bureau as an example,from the perspective of construction central enterprises,firstly,through the literature research method,the journals,books and other literatures related to PPP mode and investment decision-making are collected and sorted out,which shows the necessity of vigorously promoting PPP mode and actively carrying out PPP business in China ’s construction central enterprises.Then the operation process of PPP project is optimized,which lays a solid theoretical foundation for the investment decision analysis of PPP project of China Railway S Bureau.As the theoretical basis of this article.Secondly,using the method of investigation and research,through on-the-spot investigation and analysis of the existing PPP project investment decision-making management system,it is concluded that there are problems such as long investment decision-making cycle and potential investment risk due to the lack of comprehensive risk factors and scientific financial model.Through the case study method and the inductive summary method,the four PPP project cases of China Railway S Bureau are analyzed to find out the key elements in the project investment decision-making process.In this process,a scientific financial model is established by preposing the factors concerned in enterprise decision-making,and a three-stage method is summarized,namely,the early decision-making stage,the in-depth decision-making stage,and the financial decision-making stage to solve the problem.Among them,the early decision-making stage focuses on 8 basic elements such as the proportion of construction and installation and warehousing.In-depth decision-making stage focuses on investment and construction mode,investment return mechanism,financial security three aspects,operation mode,performance appraisal and other 11 basic elements.The first two stages comprehensively sorted out the risk factors of PPP projects and clarified the requirements of the review.The financial decision-making stage focuses on the two basic elements of basic assumptions and financial calculations,and establishes a scientific financial model.Finally,in the fifth chapter,the three-stage method is applied to Chongqing Beibei A comprehensive development PPP project,each basic element is evaluated,and the relevant data of the case is substituted into the financial model,and it is concluded that the project has good financial indicators and high return on investment.In addition,the decision-making method also greatly shortens the cycle of project investment decision-making,reduces the potential investment risk,and proves the feasibility of the three-stage method.At the same time,in view of the problems existing in the process of investment decision-making,reasonable suggestions are put forward,such as increasing the intensity of preliminary research and joining the renegotiation plan,which can provide practical academic reference for enterprises to improve decision-making efficiency and reduce investment risk.