Research On Financial Evaluation Of Urban Rail Transit PPP Project

With the continued development of the Chinese economy,the city is the foundation and support for the new economic development in China under the new economic normal.In the process of city expansion and restructuring,rail transit will play a key role and will become a huge investment in urban development.In order to solve the problems of high construction costs and the high debt incurred by many local governments,some cities in China have attempted to implement PPP pilot projects under the unified organization of the Ministry of Finance.The PPP model was introduced into the construction of urban rail transit projects.Compared with social and economic benefits,the social capital side pays more attention to the financial benefits of the project.Therefore,the research on financial evaluation of urban rail transit PPP project has become one of the hot research issues.However,at present,most studies still use traditional methods of project financial evaluation,leading to unclear financial evaluation and incomplete financial evaluation.The financial characteristics of rail transit PPP projects differ significantly from those of traditional projects.Therefore,in order to balance investment efficiency and equity,it is necessary to introduce investor perspectives in financial evaluation,and to conduct targeted research in accordance with marketization principles and project characteristics.This paper is based on the project company's position and carries out a financial analysis of the urban rail transit PPP project.Therefore,there is a great degree of consistency between the social capital side and the project company's interests.First of all,through the urban infrastructure economic attribute theory,it is clear that urban rail transit is a quasi-operating project;through the basic concept and operation mode of PPP,it is clear that the urban rail transit project is applicable to the franchising model and further analyzes the characteristics of the urban rail transit franchise project.Then,a financial evaluation system for urban rail transit PPP projects was established and analyzed in terms of structural rationality,profitability,solvency,and financial viability.According to the current status of its financial evaluation,there are four issues that ignore the structural and rational analysis,the overlap between financial indicators,the lack of a reasonable rate of return setting,and the need to improve the existing subsidy model.Among them,the analysis of the rationality of the project structure is a unique content of the financial analysis and evaluation of the infrastructure construction PPP project,and it needs to be used as a basis for individual analysis,using the DEMATEL model to select evaluation indicators and determine the evaluation model.Use principal component analysis and stepwise regression analysis to optimize traditional financial indicators and restructure the financial indicator system.Then,for benchmarking profitability,the CAPM model and WACC model were introduced to determine equity capital cost and weighted capital cost,and they were used as social capital benchmark return rate and project total investment benchmark yield,respectively,and in addition to capital and total investment and borrowing.The relationship between the funds,through the linear calculation of the project capital base rate of return,using the three benchmark rate of return as the evaluation criteria to determine the degree of project social capital,all investment and capital of the internal rate of return of the merits.At the same time,it proposes methods and recommendations for other key factors affecting cash flow.In particular,the problems existing in the existing financial subsidy model are optimized and an optimized financial subsidy model is established.Finally,taking a rail transit PPP project as an example,the financial indicators of the case are calculated according to the established evaluation index system and model,and the four financial aspects are analyzed respectively,and finally a comprehensive analysis is performed.This paper proposes a new evaluation index system and ideas for China's urban rail transit PPP project,which provides a reference for the future financial evaluation of urban rail transit PPP project and has practical significance.