Research On Financial Risk Management Of WN Gas Company PPP Project

The long-term tax-sharing degree caused the dilemma of the central government and the local government's authority and the financial property,combined with the "spur" of the central "4 trillion" investment plan and only the GDP achievement view,the government's debt scale gradually expanded and caused the debt risk.The formation of government debt risk proves the defect of local Government direct financing method,and puts forward the urgent demand of transforming local government debt.At this time,PPP(Public Private Partnerships,public–private)mode in this kind of decision thinking in the promotion of the Government to examine the status quo,the government's debt risk to dissolve the inevitable choice.PPP model has a strong potential,on the one hand,it can use social capital to broaden the financing channels,put the public utilities in the market competition environment,so as to improve service efficiency;On the other hand,it can reduce government debt pressure,convert stock debt and control debt scale.As the development of PPP model in China has not yet reached the mature stage,there are still many explicit and recessive risks in the application,so we should pay attention to the importance of risk management to the realization of PPP project objectives,especially the financial risk management,which is directly related to the success or failure of PPP project.WN Municipal People's Government has always attached great importance to the issue of cooperation between the government and social capital,as early as 2000 launched the WN natural gas company joint-stock cooperation system pilot,the state-owned enterprises funded by the municipal government into two shareholders of the joint-stock enterprise.However,due to the small size of enterprises,shareholders' ability to raise capital and other reasons,the promotion of WN city natural gas facilities construction is weak.In this context,WN City has carried out equity diversification of the company.Based on the study of the management of the financial risk of the PPP project of WN natural gas company,this paper thinks that the factors affecting the financial risk of the project come not only from the financial field,but also from the non-financial field.The impact of government factors,financial factors,market factors,cooperative factors and project itself on the financial risk of the project is analyzed,and the secondary index of these risk factors is set,and the index weight is set by the hierarchical analysis method.Finally,combined with the element method,the level of individual risk factors such as government factors,financial factors,market factors,cooperative factors and project factors and the impact of comprehensive risk factors on financial risk are assessed.This paper demonstrates the application of the identification and evaluation of the financial risk of PPP project,aiming to guide the sustainable development of PPP project in China and provide some reference for the financial risk management of PPP project.