Research On Expressway Private Capital Risk Under The PPP

Expressway is of an important infrastructure, however, only depends on traditional financing can not meet with its huge investment demands. Nowadays, the method of introducing private capital has been more and more applying to the expressway construction field, and it is an effective way to solve this problem. A Public Private Partnership (PPP) is a partnership between the public and private sector for the purpose of delivering a project or service traditionally provided by the public sector. By the collaboration between the public and private sector, PPP is applied to alleviate government financial burden and improve operational efficiency so as to achieve win-win cooperation. The expressway construction cycle has a long period with many uncertainties, systematic study the private capital risk and its response enable us to facing project risk rationally that contribute to successful cooperation.On the basis of comprehensive analysis and learning advanced achievement from home and abroad, systematical risk research on the constructing expressway under the PPP financing model is analyzed in this paper. Firstly, definition and classification of PPP financial model suitable for Chinese is discussed refers to practices from world organizations, based on the feature of expressway quasi public goods, the feasibility that PPP financing model is adopted in the expressway construction is analyzed, especially on the feature of expressway investment risk under the PPP financing model. Secondly, in the combination of other risk identification method, by making use of structure RBS, after risk identification to the private capital on the constructing expressway under the PPP financing model, a comprehensive risk evaluation index system is obtained from two aspects of each project stage and risk feature, and each index in the system is specific defined and explained; Thirdly, further study is carried out to research risk sharing principle, sharing process and the main sharing body to gain risk sharing results, based on these results, this paper puts forward relative specific solutions; Fourthly, combined the research with engineering projects and financing background, in reference to the private capital, overall evaluation is analyzed by using the fuzzy analytic network process. Based on entropy method of risk may degree, risk ranking on one grade index in the estimate system is done. The research mentioned in this paper is of benefit to private investors on strengthening risk management sense, sound decision-making and scientific risk management, and provides reference for the public sector on how to create a good investment environment.