The government work report in 2017 calls for further deepening the relevant policies and operation mechanism of the Public Private Partnership (PPP). In the report, it especially emphasizes that the government should take the lead in honesty and never change the agreement at will. In fact, since the second half of 2014, the state issued a number of guiding documents on the implementation of PPP, and there are many practical problems to be solved in practice all over the country. Some of these problems may be the source of financial risks, others are management problems that need to be stengthened.The risks in PPP application mainly lie in the following points. Firstly, the risks of local debt are increasing. Secondly, the participation rate of private capital is not high. Thirdly, the design accuracy of project book is insufficient. Fourthly, there’s a lack of professional talents. Fifthly, the project financing cost is too high. Sixthly, the supervision measures are relatively backward. In view of the possible risks and problems in the promotion and application of PPP, we also put forward some basic countermeasures.
