Studies on risk management of the urban infrastructure projects based on the PPP financing model

Abstract

With the acceleration of urbanized advancement in China, governments' high investment and low efficiency in the urban infrastructure projects have already become a worldwide problem. The PPP financing model suitable for urban infrastructure projects for theirs unique advantages. The PPP financing model in urban infrastructure projects have greater risks, so their risk management is of great significance. The paper establishes the VAR (Value at Risk) into financing risk assessment of the urban infrastructure projects, and make quantitative risk analysis to the risks; then it applies the method of expert investigation and mark and the fuzzy comprehensive evaluation to setting up the risk assessing model that is based on the VAR. Next, we establish the risk allocation model of urban infrastructure projects. Finally, we carry empirical analysis about the risk problem of an urban infrastructure project.