Research On Capital Risk Management Of Highway PPP Project Of Jiangyang District, LS Company

In mid 1980s,the PPP(Public—Private—Partnership)project has been introduced in China.However,PPP has been attention until recent two years.It is applied to various fields.At present,there are more than 1000 projects to use this model.Because the PPP involves more main body,investment is relatively large,and the construction cycle is relatively long,there are many uncertain factors in the process of the construction and operation.The factors will bring financial risks to the project.Therefore,the prevention of financial risk in PPP project is an problem that is worthy to further study.The paper chooses the PPP project of LS Company Jiangyang Road to study its financial risk management.It has great significance.The paper mainly uses the literature method,case analysis method and other methods.The research content is divided into four parts.The first part is the introduction.It mainly introduces the research background and research significance,literature review at home and abroad and research breakthrough point,research contents and methods,research innovation,etc..The second part is the related theoretical basis(is the second chapter).Firstly it introduces the meaning,basic structure,and operation ideas of PPP project,then analyzes the meaning and contend,strategies and methods of the capital risk management of PPP project.The third part is the case analysis of the capital risk management of PPP project of LS Company Jiangyang Road(including chapter 3-5).This part firstly introduces the capital operation of PPP project of LS Company Jiangyang Road;then identifies the capital risk of PPP project of LS Company Jiangyang Road,analyzes the main performance and influence factors of capital risk of Jiangyang Road,adopts the sensitivity analysis;finally the paper puts forward the capital risk management measures of PPP project of LS Company Jiangyang Road.The fourth part is the chapter 6.It mainly summarizes the results of the research,and the research prospects.Based on the research of the capital risk management case to the PPP project of LS Company Jiangyang Road Jiangyang Road,the main conclusions are as follows:(1)The paper mainly identifies the capital risk of LS Company.When LS Company constructs the PPP project of Jiangyang Road,because of variety of factors may lead to an increase in investment,and to lead to the lack of capital.In the operation phase,it will occur the situation that the actual operation cost is over expected operating cost,so it leads to the operating cost increase.Otherwise,as the project is not belong to the construction of the project,when the subsidy income is not enough,it will lead to insufficient capital risk.(2)The paper understands the main factors affecting the financial risk by using Delphi method and brainstorming method to identify the risk factors and scoring.(3)The paper analyzes the sensibility of increasing investment in construction period,increasing the costs in operating period,and declining the income in operating period by sensitivity analysis method.It finds that the construction investment and subsidy income is more sensitive to influence investment returns.(4)In view of financial risk management,LS Company clears the main body of financial risk sharing,chooses the coping strategies to financial risk,and takes the effective measures to deal with financial risks in different stages on the principle of economy,systematic and whole process.Finally,LS Company needs to improve the organizational structure,establish the internal control system,and sound risk management mechanism to ensure the effectiveness of financial risk management.The innovation of the paper is:(1)taking PPP project of LS Company Jiangyang Road as the research object,in accordance with the characteristics of the times.It helps to provide the theoretical guidance for the PPP project.(2)taking the capital risk management as the breakthrough point.There are few research aiming at the risk management of PPP project.It is helpful to effectively reduce the capital risk of PPP project of LS Company Jiangyang Road.It has important practical significance.