PPP Project Risk Sharing Research

In recent years,with the rapid progress of China’s urbanization,the construction demand of large-scale infrastructure is also increasingly exuberant.However,the fiscal revenue of many local governments can hardly support the huge construction capital demand.In this case,the PPP financing model brings good news for the government’s financial difficulties.Although PPP financing mode has the advantages of equal cooperation,benefit sharing and risk sharing,PPP projects generally have long construction cycle,large investment amount,numerous risk factors and widely divergent demands of project participants.Therefore,reasonable and effective risk sharing scheme is crucial to the successful operation of PPP projects.This paper first reviews the research literature related to PPP projects at home and abroad,introduces relevant concepts and theories,and then introduces a failed PPP project--Hangzhou bay bridge and a successful PPP project--Beijing metro line 4 as research cases.Then,the paper introduces the two projects from the perspectives of project financing and project operation and management.Then,analysis of two projects of public and private rights and obligations of both sides,the project contains the main risk and project risk actual share way,again by constructing a dynamic game model of risk distribution,combining with the basic assumptions of the model can be concluded that the optimal share of PPP project risk two basic principles: the benefits and risks matching principle;The principle of risk and control.Through the game model of risk sharing,the optimal risk sharing scheme of two projects is obtained.By comparing the optimal risk scheme with the actual risk sharing situation of the two projects,it can be found that a large part of the reason why the Hangzhou bay bridge is a failed PPP project is due to the huge bias between the actual risk sharing scheme and the optimal risk scheme.In sharp contrast,the actual risk sharing scheme of Beijing metro line 4 basically follows the principle of optimal risk sharing,thus ensuring that the project of line 4 is still running well.