Study On Financial Risk Management Of City A’s Wastewater Treatment PPP Project

My country’s to control the pollution of the environment are increasing,so the benign development of the wastewater treatment industry is particularly significant.In 2014,the government first defined the PPP model and began to strongly promote it.In 2017,the Ministry of Finance and other circulars pointed out that the PPP model was fully implemented for new sewage and waste treatment projects with government participation.and the sewage treatment PPP projects developed rapidly.However,due to the large scale of investment in PPP projects,long cooperation periods,and many participants,and the development of my country’s PPP model is still immature and financial risk management is not perfect,It is important to research the financing risks of wastewater treatment PPP projects.This paper analyses the financial risks of the wastewater treatment PPP project of City A as an example.Firstly,the author review the classification,risk identification,assessment and response of PPP models at home and abroad.Then,through the introduction of the definition,characteristics,operating procedures,strengths and weaknesses of the PPP model,the concept of the PPP model is clarified.Proposed the PPP financial risk management framework.Secondly,the financial risk of wastewater treatment PPP is further deepened through the analysis of the current development status of the industry of wastewater treatment PPP project in City A,the analysis of project profile and the financial risk composition.Again,the sensitivity ranking is made through sensitivity analysis of important financial indicators,and the financial risk of the project is assessed based on the F-score model.And the causes of financial risk are analyzed and the problems of financial risk management are derived.The venture concludes with related financial risk management strategies and optimized recommendations,and the program company should be perfected the financial risk identifying and assessing management system,establish an independent supervisory body to strengthen internal financial supervision,enrich the PPP exit mechanism,focus on building a contract negotiation mechanism,and build a trust network and other measures.