Study On Financial Risk Management Of 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.Under the PPP model,government and private enterprises form a kind of contractual relationship,which overcomes the shortage of funds,low management efficiency and high risk in the traditional development mode of public utilities.At the same time,the choice of PPP mode has also widened the investment channel for the private economy.The introduction of PPP model has broken the dilemma of the shortage of infrastructure in our country,and realized the original intention of public-private cooperation.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.Based on the study of the management of the financial risk of PPP projects,this paper believes that the factors that affect the financial risk of the project come from not only the financial field,but also the Non-financial field.This paper analyzes its influence on PPP project financial risk from government,financial,market,cooperation and project itself,and sets two grade index for these risk factors,and sets up index weight by AHP.Finally,the article evaluates the individual risk factors such as government factor,financial factor,market factor,cooperation factor and project self factor,and the level of the impact of comprehensive risk factors on financial risk.Finally,the article takes the Renqiu Intelligent yard project in Hebei Province as an example to demonstrate the application of the financial risk early warning system of PPP project.In this paper,the research on the financial Risk management of PPP project aims to guide the sustainable development of China's PPP project and provide some reference for the financial risk warning of PPP project.