Research On The Financial Risks Management Of Public-Private-Partnership

As China’s economy enters the "new normal",fiscal expenditures grow rigidly,and fiscal revenue growth slows down.The PPP model has become an effective way to alleviate local financial shortages.The Ministry of Finance,the National Development and Reform Commission and other departments have continuously issued relevant policy documents in recent years to provide policy support for the widespread promotion of the PPP model.The construction of the PPP model has been carried out intensively in various regions,and a PPP boom has arisen nationwide.The report at 19th CPC National Congress puts forward,’we must take tough steps to forestall and defuse major risks’.The financial risk of PPP is objective.Doing a good job of PPP financial risk prevention and control is an important condition for ensuring the healthy development of PPP and the normal operation of the financial system.As a PPP participant and a representative of public entities,the government is responsible for supervising and managing PPP projects and preventing financial risks.The current lack of financial risk prevention of PPP and the imperfect management mechanism make the financial risks of PPP that are uncertain,concealed and damaging are accumulating,the form and management tasks of PPP financial risks should attract sufficient attention from the government and the public.This article can be divided into four parts.The first part introduces the concept and characteristics of PPP mode and PPP financial risk,and briefly introduces the classification,main operation mode and significance of PPP mode,PPP financial risk identification,Fiscal risk matrix;The second part is the realistic analysis of the financial risk of China’s PPP,and the development process of PPP model in China.Then,based on the project stage and PPP’s overall development and distribution in China,the financial risks are analyzed.Based on this,the paper summarizes the financial risks.The reasons for the financial risks;The third part selects the United Kingdom,Australia and Chile as the experience countries,introduces the development of PPP in the experience country and the management measures to prevent and control the financial risk of PPP,and summarizes the implications for the PPP financial risk management in China;In the last part,the specific recommendations of PPP financial risk prevention are proposed from the perspective of governance framework,budget management,and contract management.