Research On PPP Project Financing Risk Based On ISM-AHP

With the rapid development of economy,the demand for public facilities is increasing and the funds are in short supply.In order to speed up the construction of public facilities,our government has gradually adopted PPP project financing,which mainly refers to some form of cooperation between the government departments and other participants of the project for the common goal.The application of this mode has been developed rapidly in China.It can not only solve the single financing channel but also improve the project management mode.It has made a breakthrough in many countries in the world.Due to the rapid development of China's economy,the construction of infrastructure can no longer meet people's normal needs,so the country is vigorously developing PPP projects.On the one hand,it can not only greatly reduce the financial pressure of the government,but also greatly improve the efficiency of project management,so that the speed of infrastructure construction has been improved;on the other hand,private In the long-term cooperation with the government,enterprises can not only get the rapid improvement of their economic strength,but also drive the growth of the surrounding economy.At the same time,the disadvantages are the same.Although China has been rapidly developing PPP projects and accelerating the construction of infrastructure,there are still many difficulties in the actual operation process.According to the past successful cases of PPP projects in accordance with foreign countries,it can no longer fully meet the needs of China's current situation.Through the study of some domestic PPP projects,it is found that the management of financing risk has a great impact on the success of PPP projects,so it is necessary to strengthen the management of financing risk of PPP projects to ensure the normal operation of the project.Based on the understanding of the financing risk of PPP project,combined with some related literature,this paper makes a systematic study on it.First of all,collect the factors related to the financing risk of PPP project,systematically analyze these influencing factors by means of questionnaire,identify eight kinds of risks that affect the financing risk of the project,and subdivide them into 18 risks,such as sovereign risk,tax risk,capital risk,inflation,construction cost overrun,imperfect construction specifications and standards,immature construction technology of workers,etc.Then,using ISM to analyze these factors,find out the level which has great influence on financing risk.For using AHP,it is only qualitative analysis,so this paper also uses AHP to carry out quantitative analysis,which makes PPP project financing risk evaluation model more perfect and systematic.Through the quantitative and qualitative analysis of the financing risk of PPP project,the root causes of the impact on the financing risk of PPP project are successfully identified,and the measures to deal with these risk factors are given in this paper.Finally,this paper combines the theory and practice of PPP project with relevant cases,and provides better suggestions for the development of PPP project in the future.