Research On Process Risk Control Of China Industrial Bank's Participation In H City's PPP Project

With the central and local government had promoted Public-Private Partnership(PPP)vigorously in recent years,the mode of PPP had achieved huge development,and then soared into rapid growth period.By the end of December2016,there were 11,260 national level PPP program,accounting for 13 trillion and 500 billion RMB.As the main financing entity,commercial banks are facing many challenges and obstacles in project under PPP mode.Therefore,research on risk assessment and risk control of commercial banks' participation in the PPP project will contribute a lot to the promotion of risk control's operability,subsequently improve the quality of risk control on commercial banks' participation in the financing of PPP project.Following the deductive method of general to specific and combing theory with social practice,this paper takes Pipe Gallery PPP project conducted by city H and China Industrial Bank as the research object,in order to offer certain experience and reference for the risk control of commercial banks' participation into project under PPP model.From two aspects namely the situation of pre-financing and situation of post-financing,this article focused on the risks and issues during four processes which are bidding,implementation,operation and transfer.In the process of bidding,risk factors of credit,legal,operate and competition faced by China Industrial Bank were identified and analyzed.Moreover,in the process of PPP project's implementation,operation and transfer,risk factors of negotiation,contract,construction period and payment were also investigated overall.Based on the investigation about risk assessment and risk control in process,this study offered suggestion and effective measures for China Industrial Bank,in order to provide reasonable pre-loan management.Through a tight legal control and perfect the financing plan,China Industrial Bank could control the financing risk of social capital subject,put forward specific measures to standardize and improve the PPP contract the duration of the establishment of specialized management team.In addition,commercial banks should put forward formalized and finely designed measures for PPP contract,organize professional management team in construction period,establish dynamic risk controlmechanism,and then propose whole process management plan.Finally,through analyzing Pipe Gallery PPP project conducted by city H and China Industrial Bank,this research intended to offer practical experience and effective strategies for commercial banks on risk assessment and risk control in the process of investment and financing in project under PPP mode.