The Study On The Model And Case Of Risk Sharing And Controlling For Project Financing

As an innovation tool of the international financial market, Project Financing has developed into an efficient widely used financing method for private and international resource and can provide more vivid with diverse outlet and a powerful support for the development of the construction and economy society. The various modes of project financing, such as BOT,PFI,ABS etc., have been applied in many international projects, which included infrastructure's construction, power plants, water resources development projects etc. The Project financing is seen as an independence branch of the international finance, which has been accepted extensively by people.In China, along with the continuously and quickly development of the economy, the gap have been enlarged between supply and demand in the projects of public infrastructures, petroleum, power, water resources etc. Increasing investment is unique choice already, however, how to improve the efficiency and performance of the investment and how to attract more private and international capitals have become the initial problem that we should consider. The Project Financing, which is the more and more popular way to solve it, opened the door for us.The variety of the international environment factor, the relationship between the partners, the structures and the modes of the financing, the source of the funds etc. will have influence on the construction progress and the operation cost of the project. It could be solved by building up the right system for the project risk management, including risk identification and evaluation, and establishing reasonable model for the risk sharing and the dynamically controlling. In this paper, the whole process for project financing analysis and risk controlling were discussed in detail. Firstly, the elaborate completely introduction for the project financing concept, features, organizations and the implement steps were reviewed, then international currently modes of project financing were analyzed, especially for detailed risk analysis for the modes. After that, the model of project financing risk sharing was set up with the game theory, which is useful for analyzing project financing risk, optimizing project financing's structure and establishing reasonable allocation of the risks. For the risk control of project financing, the project financing risk dynamic evaluation and the control model was established, which used fuzzy mathematics, AHP and some indexes.In the paper, the cases of TEDA (Tianjin Economic Technological Development Area) were studied. Also one of the biggest scale seawater desalination projects was given as the empirical analysis evidence for the models. In this project, the financing contract was discussed through the model of risk sharing and the dynamic risk evaluation and control models were applied, which illustrated the models were practicable and applicable.