Policy Banks Participate In The Risk Management Research Of PPP Projects

Public-Private-Partnership is a long-term cooperative relationship established by the government and the private department based on contract to provide public goods or services on the basis of equal cooperation.It can be divided into franchise,outsourcing lease and privatization.PPP project is to sustain a vital public service,mostly limited to public goods caused by market failure.Social capital is difficult to take the initiative to put into the PPP projects.Represented by the export-import bank of policy Banks involved in the PPP projects,conducive to the rational use of funds,promoting social capital investment,promoting the success of the project implementation.The participation of Banks and social capital can also regulate the emergence of government failure to a certain extent and provide conditions for the benign operation of PPP.In recent years,the PPP markets of China has been developed rapidly.PPP projects have played a positive role in driving economic growth,promoting supply-side reform,easing local government debt pressure and improving the quality of public services.Because PPP project has the characteristic of long term,large size,multiple participants,and complex risks.How to do a good job in risk prevention to ensure the timely return of financing principal and interest is a very worthy research topic for Policy Banks,including the EXPORT-IMPORT bank of China.Based on this,in view of the strong policy characteristics of PPP projects.This paper makes a comparative analysis between policy Banks and commercial Banks.This paper comprehensively reviews China's PPP policies,and analyzes 12 types of possible risks,including feasibility risk,legitimacy risk,strategic risk,market risk and credit risk,according to the progress process of PPP project initiation,construction,operation and handover.Through the analysis of failure cases and participation cases,it is concluded that it is far from enough for export-import bank to participate in PPP project financing by a traditional way.It is necessary to strengthen the construction of the comprehensive risk management system for PPP project financing,select high-quality customers and projects,and optimize the loan process,so as to match the risk management ability of the PPP project of export-import bank with its business development.