Research On Financial Risk Control Of Highway PPP Project

In recent years,Chinese economic construction has been undergoing continuous transformation.In order to broaden the investment channels of social capital,optimize the orientation and mode of government investment,PPP mode has been actively introduced by the country.However,the start of PPP mode in China is relatively late.In the process of practical application,deficiencies exist in the basic research and practical experience of PPP mode,as well as the lack of clear financial risks and supervision and control measures of the project.The problems above resulted in the failure of some projects that applied PPP mode in China,which caused some participants to suffer certain economic losses.Investment in highway construction is increasing year by year,as well as the number of highway PPP projects.Thus,studying the financial risk control of highway PPP project is of vital importance.Accordingly,this thesis combines the current actual situation and picks T project of Z company as the object of study,analyzes the reasons of financial risks of highway PPP project,in order to provide some experiences to promoting the success rate of highway PPP project and application of PPP mode in our country.In this thesis,we first combed and studied the relative literatures,summarized and expounded the relevant concepts and theories in the financial risks of PPP projects.By comparing the financial risks of highway PPP projects with ordinary projects,we found out the differences in financial risks between different types of projects.On the basis of the financial risk theory of PPP mode,the T project of Z company is analyzed,which shows that the project has some problems.Firstly,the payback period is too long;secondly,high credit capital ratio of the project;thirdly,the investment risk and financial risk are too large,and the source of income is relatively single,which is prone to problems such as insufficient compensation for expropriation and demolition,project losses and so on.To settle the problems above,the thesis purposes some optimization strategies,such as allocating the funds properly,expanding the financial channels,broadening the income and profit sources of highway PPP projects,strengthening the cost control.At last,to guarantee the optimization strategies above put into effect,the thesis purposes the optimization measures such as improving the assessment and attention level of potential financial risks,strengthening the overall budget management,establishing a PPP project management team with excellent professional skills and capabilities.