Study On Risk Management Of The Public And Private Parties Of Urban Rail Transit Project Based On PPP Mode

Since there are more participants and more uncertainties in PPP project, and since therail transit project has large-scale investment, a long construction and operation period,and awide range of involving,urban rail transit project based on PPP mode has great potential risk.Sharing out the work and cooperating with one another between the public and private on riskmanagement effectively plays an important role and runs through the entire project life, theinitial risk allocation at the preparatory phase is the basis for the subsequent comprehensiverisk allocation and control.Based on the preparatory phase of the project, this article firstly identified the systematicand unsystematic risks of urban rail transit project based on PPP mode. The systematic risksinclude political and legal risk, economic risk and force majeure risk, the unsystematic risksinclude project bidding and financing risk, project design risk, project construction risk,project operational risk and cooperation risks. Secondly,according to principle of riskallocation and practical experience and research achievements of PPP project at home andabroad, this paper get the preliminary risk allocation results of urban rail transit project underPPP model: except for political risk, the systematic risks were shared by public andprivate;for unsystematic risks, planning scheme changing risk and construction site gettingrisk were undertaked by public; inadequate bidding competition risk, availability of financingrisk, engineering changing risk, ticket price risk,passenger flow volume risk,contractcompleteness and changing risk,credit risk and public’s excessive intervention risk wereshared by public and private;others were undertaked by private.At last,this paper divided allthe project risks into three categories:risks shared by the public and private, risks whichpublic undertaked and risks which private undertaked.Focused on risks shared by the publicand private, this paper put forward risk prevention measures, related franchise agreement andrisk treatment measures of public and private, in order to provide guidance of sharing out thework and cooperating with one another between the public and private on risk management.