Research On Operation Risk Sharing Of Affordable Housing Under PPP Model

Affordable housing is an engineering project that is related to the interests of people’s livelihood.It is the welfare housing that the government implements classified guarantees and limited prices in order to alleviate the housing pressure of certain groups of peopleimprove people’s livelihood,and maintain social harmony and stability.At present,there is still a large gap in the supply of affordable housing in China.Due to the lack of financial resources,there are outstanding problems such as inadequate supply of affordable housing,remote site selection,and inadequate supporting design,which reduces user satisfaction.The PPP model can improve the supply efficiency of the project to some extent.However,affordable housing is a public welfare material with low profitability,which is in contrast to the characteristics of rational economic people who seek to maximize profits in the private sector.In addition,the diversity,dynamics,and uncertainty of operational risks increase operations.The difficulty of management highlights the need for reasonable risk sharing.Reasonable risk sharing is conducive to the realization of the project’s expected goals and restore the essential nature of affordable housing services.Unreasonable risk sharing can easily result in the lack of awareness of both parties’ responsibilities,increasing the difficulty of managing the project and the transaction cost of the project,hindering the progress of the project and reducing the stability of the cooperation.In summary,this paper designs the risk sharing framework in light of risk appetite from the public and private institutions to improve the enthusiasm of the private sector in participating in affordable housing operations,so as to promote the smooth application of the PPP model in affordable housing projects.The research of this article is as follows:First of all,this paper summarizes general housing,ordinary housing,and failure cases of PPP projects,and designs a list of operational risks for affordable housing under the PPP model.Questionnaire surveys were conducted to use the fifth-order Likert scale to score points on the degree of risk occurrence,risk occurrence,and risk sharing.Data was processed using the T-test to identify differences between the two parties and share the difference according to the risk of both parties.The importance of degree and risk is divided into four quadrants: the first quadrant(high risk-sharing difference between the two sides-high degree of risk),the second quadrant(high risk-sharing difference between the two sides-low risk significance),and the third quadrant(both sides Low degree of risk sharing difference-low degree of risk importance,fourth quadrant(low degree of difference in risk sharing between both parties-high degree of risk);Second,the difference in the understanding of both sides reflects the two sides’ attitude towards risk.If the two sideshave ambiguous understanding of the risk at the source,it will affect both parties’ attitudes towards risk management.For risks with less risk-awareness differences,it is basically stated that both parties have reached a consensus on this type of risk understanding,and it is easy to reach an agreement when they negotiate and combine the differences and importance to construct an important-difference four-quadrant matrix map.Design risk sharing plans separately;third,share the principles and methods to determine.The purpose of risk sharing pointed out in the “PPP Project Contract Guide” determines the risk sharing principle of this paper.Fourth,the high risk-sharing scheme based on high-importance and high importance design is the key research part of this paper.The purpose of sharing based on this paper is to select the most appropriate risk sharing entity,choose the method of grey correlation degree and entropy method to construct the risk model,and verify its feasibility application through case simulation to determine the share of operational risk.Finally,for the effective practice of risk sharing,relevant risk sharing incentive measures are proposed to provide the thrust for the effective implementation of the risk sharing model constructed in this paper.