Risk Management Research Of Water Project On PPP Mode

Water is the source of life,and the necessity of people's daily productions and lives,so it cannot be replaced.Water industry,as an essential one in national economy,is related to national welfare and people's livelihood.And the deficit of water enterprises has been subsidized by government's finance for a long time.However,this model is not efficient,and such problems as seriously insufficient fund has become more obvious.With the development of cities,the construction and operation of infrastructure need a huge amount of money,so it is unrealistic to rely totally on government's finance.The adaptation of the PPP model in water projects can reform the present operational system of them.By taking in social capital,enterprises' social pressures can be eliminated,which can not only reduce government's financial burden,but can also improve the operational efficiency of water projects,and bring in the advanced production technologies and management experience of social capital,thus adding additional value to water projects.However,PPP water projects need to take in a huge amount of social capital,and have a long term of cooperation management,so they face with various elements of risks.Thus the sharing and treatment of water projects' risks are very important.Therefore,a set of risk management system of water projects needs to be built to increase the projects' possibility of success.This thesis is a research on risk management theory's adaptation into PPP water projects.Starting from the financing theory of PPP projects,and based on the features of water projects,the thesis recognizes the risks contained in franchise water projects.Through an analysis of the risks of previous water projects,an analysis of their different risks,and experts interviews,the thesis recognizes the elementary list of risk elements in PPP water projects.The thesis chooses the example of the PPP project of T'city North Water Service Company,by means of questionnaire survey,the thesis proposes the final list of 18 risk elements,including five aspects: financial risk,environmental risk,project construction risk,project operation risk and public interest risk.And risk assessment was carried out.Besides,based on PPP's principle of sharing risks,the thesis completes the frame of projects' risk sharing.The risk sharers of projects are mainly government,private sectors,project companies.Others including creditors,contractors,suppliers,insurance companies and guarantee companies mostly share secondary risks.Based on the treatment strategies of project risks,the thesis makes the strategy that deals with the risks of the PPP project of T'city North Water Service Company.This thesis,through theoretical studies and practical project experience,summarizes and proposes a set of comprehensive and operational risk management system of PPP water projects,hoping to provide some references for the management and practice of PPP water projects.