The Risk Management Research Based On City C’s Rail Transit The First-period Project Of Beihu In Private-public Partnership

PPP financing mode is a new project financing mode. In this mode, which advocates social capital actively into the infrastructure of the state, and local governments share the risk and obtain the expected earnings,. Application cases are widely existing in the world and continuing popularized.Along with the development of Chinese economies and improvement of the people’s living standard, the current rail sector can no longer satisfy the demand. The budget of the government is too tight to build up the well functioning rail sector without the help from private parties. Private-Public Partnership has gained its importance during the past decade and has been spread all over the world. PPP financing allow the private parties participate in the infrastructure construction and managing process, it can shorten the project life cycle as well as reduce the cost. It may also improve the quality and transfer certain kind of risks of the project. But at the same time, there is a lack of public control and decrease of flexibility. But due to the failure in consortium management, lack of control by the government and the uncomplicated of the contract, the project failed to carry out the expected results. In our country, the PPP model is still in its infancy, and it is not efficient and can be replicated. The reason or in the construction of infrastructure projects, failed to fulfill a wish driven by private institutions and capital enthusiasm or project itself lacks the ability to profit, or is the allocation of rights and responsibilities unclear, resulting in unable to attract investors. China is using the experience and lessons from the western world and trying to develop its own PPP projects in rail sector. Beijing subway line 4 is a good example. So far, this project has been run successfully.In this paper, City C’s Rail Transit Project is a case of the main column. And through reference to the domestic and foreign research present situation, from the perspective of financing risk of the city rail transit project for the detailed research and evaluation. In this paper, the comparative analysis of the advanced countries and regions in the subway investment and financing experience, China’s rail transport financing reform put forward suggestions.