Research On Financial Risk Management Of Freeway PPP Project

The application of PPP mode in our country is short,to strengthen the local government debt management,relieve the pressure of government debt,our country vigorously promote the application of PPP model from 2013.However,PPP model is applied in our country for a short time,theoretical research and experience are insufficient,because the control of PPP project is not reasonable,many PPP projects ended in failure,it has caused some damage to the government,the social investors and the public.China put large capital investment in freeway construction projects every year,freeway construction projects have a bigger financial risk.Now we put freeway construction and PPP model together,how to control the financial risk is an urgent problem to be solved.In order to strengthen risk management of freeway PPP project mode,and provide some theoretical reference and reference for freeway PPP projects in China carried out smoothly,take the JY freeway PPP project as an example to study the financial risk management of freeway PPP project.In this paper,foreign literature about the financial risk management of PPP project is carried out,and elaborates on the PPP project financial risk management concepts and Hypothesis of Rational Economic Man and Principal-agent Theory and Risk Preference Theory,then establishes the theoretical basis for the following parts.Then the paper introduced the financial risk management issues of China's current freeway PPP project.After that,the paper introduced the JY freeway to us,using the method of document audit and risk checklist to identify financial risks,found that the project mainly has the financing risk,investment risk,income distribution risk and the risk of cost overruns.On the basis of project risk,using financial accounting analysis state to measure the risk of this project.This paper analyzes the profitability,solvency and sensitivity of the project,found that the project profitability and solvency can meet the project progress,but profitability and solvency is not very strong,and the ability to resist risks is weak.The paper found some internal and external risk factors through the analysis of the project.Then the paper puts forward the control method for the JY freeway PPP project financial risk.After that,the paper found out the financial risk management problems of JY freeway project and put forward some improvement measures.Finally,based on the research of financial risk management of freeway PPP project and JY project,this paper put forward some suggestions.This paper based on the financial risk management in domestic and international PPP project,using qualitative research and quantitative research at the same time,combining theoretical research and case analysis,to study the financial risk management of freeway PPP project,so as to realize the existence of freeway PPP project financial risk and put forward the control strategy of it,aiming at the problems existing in the implementation of the financial risk management system,this paper puts forward some suggestions to improve the financial risk management of PPP project in China.