1, the significance of introducing PPP mode in urban rail transit construction
PPP is a mode of cooperation between the public sector and private enterprises, which means that the government, for-profit enterprises and non-profit enterprises cooperate with each other based on a project. When partners participate in a project, the government does not transfer all the responsibilities of the project to private enterprises, but all parties involved in the cooperation share the responsibilities and financing risks. The government or affiliated institutions of the country where the project is located coordinate with the investors and operators of the project and play a role in the project construction. Among them, the public sector and private participants of the government cooperate on the basis of franchise agreement. PPP represents a complete concept of project financing, and its organizational form is very complicated, which may include for-profit enterprises, private non-profit organizations and public non-profit organizations (such as the government).
Compared with the previous project financing scheme in which private enterprises participate in public infrastructure construction, PPP financing scheme is not a global change, but it has a huge impact. Specifically, PPP financing has the following advantages:
1) The setting form of PPP organization can determine which projects can be financed as early as possible, and can better solve the risk allocation in the whole project life cycle at the initial stage of the project.
2) Private organizations in 2)PPP mode aim at profit, and they will provide the best service for consumers, thus winning customers.
3)PPP mode can make private enterprises involved in public infrastructure project financing participate in the early stage of the project, which is beneficial to the application of advanced technology and management experience of private enterprises. By adopting PPP scheme, private enterprises interested in participating in the project construction can discuss the technical scheme adopted in the project construction process with the government or relevant institutions of the country where the project is located, thus making it possible to adopt updated research results.
4) Under the PPP financing mode, private enterprises interested in participating in public infrastructure projects can contact the government or relevant institutions of the country where the project is located as soon as possible, which can save the bidding cost and preparation time, thus reducing the final bidding price.
5) Through the PPP financing mode, the participating parties of the project re-integrate and form a strategic alliance, which plays a key role in coordinating the different goals of all parties.
6) Under the PPP mode, the design, construction, operation and management of the project are effectively combined, and the required funds can be raised in time to improve the efficiency of project implementation.
2. Risk analysis of urban rail transit PPP project
The risk of PPP in urban rail transit projects is shared between public and private parts according to the following principles: it is conducive to optimal control and treatment of possible accident risks; Conducive to the best management of possible risks; Conducive to the fastest transportation and transfer of this risk; Conducive to the best preservation of possible risks; Conducive to maximum risk tolerance; It is beneficial to reduce the project cost.
During the implementation of PPP project in urban rail transit, there are also a series of uncertain factors and many risks, some of which are even related to the success or failure of PPP project.
2.1* * The typical risks of franchising public parts can be divided into external risks and internal risks.
2. 1. 1 project external risk refers to the risk beyond specific projects, which is not only uncontrollable in the basic elements of PPP projects, but also affects PPP agreements. They are usually outside the project, including the political, legal and environmental impact on the concession contract. These risks are beyond the control of managers or sponsors and cannot be redistributed through contracts, so they are usually kept by sponsors.
Risks affecting the outside of the project are mainly manifested in the following aspects:
(1) Risks of the host country and region-stability of the country and region, including compulsory auction of requisitioned nationalized assets, collection of toll or tariff level, increase of taxes and user fees, repatriation of domestic profits, change of government, change of fiscal policy and increase of debt level of existing infrastructure in the country and region; The stability of the current legal system, that is, legal changes, social conflicts, inconsistencies in national or local laws, changes in import and export rules, changes in company law, changes in standards and norms, changes in commercial law responsibility and ownership law, etc.
(2) Concession agreement-the type of concession agreement, concession period, extension of concession, setting of main price, public inquiry, authorization list, entrustment of concession, monopoly of concession and competition of existing equipment; Changes in legal rights and obligations, changes in supply agreements, settlement of disputes, etc.
(3) Market risks-changes in equipment demand, increased costs of raw materials and consumables, economic downturn, product quality, social acceptance of user payment policies and consumers' resistance to toll tax; The influence of pressure groups, the influence of external factors on business, the influence of environment, the commitment of environmental transformation, etc.
(4) Currency circulation risk-convertibility of income currency, exchange rate change and currency depreciation.
(5) Risks of natural ecological factors-plague and disease, land environment, unfavorable weather conditions, material obstacles, social and ecological changes during the concession period, etc.
2. 1.2 internal risks of the project The internal risks of the project are those elements that can be controlled in the PPP project. These risks can be allocated to project partners through some agreements, transferred at cost or insured in the project. The basic risks of infrastructure projects mainly include technical risks, contract performance risks, commercial risks and financial risks. The inherent risks of the project usually include: demand/revenue risk-the government may bear part of the revenue risk. If the government provides revenue support guarantee for the PPP project, when the traffic volume is lower than the predicted value in the agreement, in order to ensure the development of the project, the government will need to give certain support technical risks (design and construction)-the public part may retain the risk of obtaining legal land from the government and agreeing to the construction and operation permit. The technical risks will definitely be transferred to the builders. Liability risk-local or national governments may bear the liability risk and financial risk of those operating equipment being damaged or infringed-how the government provides financial policies including soft loans, guarantees and tax holidays.
2.2 Private Sector Risks The franchise risks of PPP will be shared by different investors, for example, some risks will be transferred between the sponsors and subcontractors through contracts.
The private sector inherent risks of PPP projects are mainly manifested in:
(1) Construction and design risks-availability of equipment and resources, labor relations, quality, work skills, injuries, construction period, extension, construction procedures, construction technology, construction period, engineering cost, insurance, bonds, bankruptcy, design defects, design life, effectiveness of information, connection points of specifications and standards, design changes during construction,
(2) scientific and technological risks-providing new technologies such as changing existing technologies and development costs.
(3) Operation and maintenance risks-operation environment, raw material supply, energy, equipment performance, operation workshop, operation interruption caused by injury or negligence, consumables, operation method, operation management mode, guarantee, estimation of operation cost, effectiveness of resource saving, maintenance system, compatibility of related equipment, etc.
(4) Loan and recovery risks-types and sources of loans, validity of loans, loan cycle, fixed payment, cash flow turning point, discount rate, rate of return, payment plan, cost of maintaining loans, standby loans, asset-liability ratio, existing debts, contracts, working capital loans, etc.
(5) Demand risk-the correctness of demand and growth data, the ability to cope with increased demand, and the connection between existing equipment and the demand after the concession period.
(6) Interest and toll (fee) risks-the form of interest rate, existing interest rate, changes in interest rate, asylum fee, collection level, monetary income, differences in tariff rules, control fee, remuneration obtained or paid, etc.
(7) Fair risk-institutional support, continuous distribution, cited rights and interests types, dividend distribution time and quantity, etc.
3. The main problems and obstacles faced by PPP mode of rail transit.
1) The local government lost control of the project. In some PPP operation modes of rail transit, from design, construction to operation management, private institutions are the main undertakers, and the government's control over the project is mainly reflected in the package cooperation agreement between the government and private institutions. In practice, if private institutions lack honesty and morality and deliberately deceive government departments, it may happen that the government loses control of public projects for a short or long time. Therefore, in PPP, local governments must strictly stipulate the service standards of control projects in the terms of cooperation.
2) Political Risk In some areas, local government leaders and enterprises are very ignorant of PPP and lack relevant knowledge and experience. At this time, if we rashly cooperate with private organizations outside, serious project risk problems may arise. Once this kind of public project has problems, it will lead to certain political risks.
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