Research On The Risk Allocation For Public-Private-Partnership Projects In Urban Rail Transit

With the rapid development of economy and the needs of people in China, urban rail transit project has come to a boom period which is high-speed and revolutionary. The Public-Private-Partnerships is an effective mode of financing in urban rail transit project as it can maximize the advantages of both public and private resources while providing high quality and reliable public services. The public and the private have increasingly awared of the importance of risk management in which the risk allocation is the most crucial part. This paper puts forward a comprehensive risk allocation mechanism including division of risk responsibilities, risk allocation ratio, etc.Firstly, this paper has effectively identified risk factors of PPP projects in urban rail transit on the basic of practices comprehensively sorted.and participants specifically analysised while using multiple appropriate management methods such as Risk Breakdown Structure, document retrieval method. Secondly, this paper has deeply analyzed current risk allocation situation of PPP projects in urban rail transit through basic way, stage of the process and contract signing. It has raised problems with government and private sector on the consciousness level, mechanism level and management level in which cause of the problems are further explored. Finally, public and private preliminary division of responsibilities and risk attributable are put forward based on premise of common interests and the integrated use of game theory. For risk factors which need share the proportion, the allocation ratio has been determined by using fuzzy evaluation method based on risk allocation capabilities of public and private. Additionally, this paper has proposed safeguard measures to solve potential implementation difficulties from professional, systems and organization, which provide a strong guarantee to the development of China’s PPP projects in urban rail transit.