Risk And Investment Value Analysis Of M Motorway PPP Project

The PPP(public-private-partnership)has developed rapidly since it was proposed in China in 1980 s.This new model can not only find new investment areas for social capital,but also relieve the financial pressure of our government.Although the economic growth rate is slowing down,the social demand for infrastructure in China is still increasing steadily due to the serious imbalance of regional development.Against this background of obvious infrastructure gap,in order to reduce financial burden and relieve local debt pressure,the government departments proposed to speed up the pace of cooperation with the private sector and vigorously promote the PPP model.Motorway is an important part of infrastructure,and it is an early field for China to carry out public-private partnership and introduce international capital.As an important part of Sichuan motorway network,M motorway is built with PPP mode.Taking M motorway project as a typical case,this paper analyzes and studies the risk factors and project investment value that affect the investment value.The main purpose of social capital investment in motorways is to obtain a reasonable return.Because of the PPP project has the characteristics of complexity,long term and risk diversity.So how to accurately analyze and judge the investment value of motorway and against the risk of the project become an important question for social capital.To identify the risk factors that cause project failures,this paper studies a large number of cases,compares the well-known PPP failures at home and abroad c and list the risks of PPP projects.Then use the risk list to design a questionnaire for the M motorway.Making a remark for the risk occurrence probability and risk impact degree on the risk list through the way of questionnaire from experts.Using fuzzy evaluation,risk of project is fully evaluated.Dealing with the result of fuzzy evaluation through the risk matrix,ranking the risk factors that affect the M motorway.Taking measures to deal with greater risks combining the actual situation of the M motorway.The payment mechanism of the M motorway adopts the combination of users pay and government subsidies.This paper analyzes whether the M motorway has investment value from the perspective of the private sector.Specifically s peaking,firstly the benchmark yield of motorway industry is measured by using CAMP model and WACC.