Study On Risk Allocation Of China Water PPP Project

With the rapid development of society and economy,the continuous improvement of people's living standards and the gradual deepening of new urbanization,China's water infrastructure is facing greater demand for construction and upgrading.However,the government's financial resources are limited,so it is difficult to solve the problem of shortage of water infrastructure at this stage.Introducing the Public Private Partnership(PPP)model into China's water infrastructure construction projects can effectively relieve government financial pressure,and on the other hand,it also provides new investment channels for private sector.The PPP water project has a large sunk cost in the early stage and it need professional sevices in construction and operation.Through the advanced technology and operational management experience of private sector,service quality and construction operation efficiency can be improved,moreover,green and efficient sustainable development can be achieved.Compared to the original model that water infrastructure construction projects managed by local state enterprises,the PPP model has many participants,complicated processes,long operating periods,and deeper cooperation between the government and the enterprise.In the process of applying the PPP model in China's water sector,government departments and private sector have gradually realized the importance of risk management,while the rational sharing of risks is a key issue in risk management.This paper mainly studies the issue of risk sharing in China's water PPP project.Through the combination of qualitative research and quantitative research,the paper proposes a reasonable risk sharing mechanism for China's PPP water project and validates it through case studies,providing a risk sharing theoretical reference for future PPP water projects.Firstly,based on the research at home and abroad together with the current research of the development of China's PPP water model,the problems in China's PPP water project risk sharing practice and the vacancy of related theoretical research at home and abroad are proposed.Then,through case studies,literature review,WBS-RBS method combined with expert inquiries for risk identification,a risk list of China's PPP water project was summarized,furthermore,through the establishment of an ISM model for risk factors of PPP water projects in China,the relationship of risk factors is derived which lays the foundation for risk sharing.Then through literature research combined with the characteristics of water PPP project,the principle of risk sharing of PPP project and the life cycle risk framework of the project are concluded.Meanwhile,the Delphi questionnaire and analytic hierarchy process are used to calculate the weight of risk sharing principle.Finally,by comparing the advantages and disadvantages of various risk sharing models,it is determined that the fuzzy comprehensive evaluation method can be used to solve the problem of sharing the risk proportion.In order to verify the applicability of this model,a PPP water ecological center project was illustrated for case analysis,in which the model framework proposed in this paper was used to draw the risk sharing decision.Risk sharing adjustment framework is put forward based on the multilevel hierarchical structure directed graph of the water risk PPP project risk factors.In addition,in order to improve the practicability of the research results of this paper,the corresponding contract proposals of the case are put forward on the basis of risk sharing results.