Research On Financing Risk Allocation Of PPP Model In Infrastructure Projects

Infrastructure construction is an important part of national economic and social development, and it's also the necessary premise of national and regional economic development. In recent years, with the fast development of our country economy, infrastructure constructions have paid more attention, at the same time, the quality and quantity of the construction restricts the development of economy. Due to the construction requires a lot of investment and high operating costs, and it also need lots of capital to upgrade the infrastructure. So if we just rely on Public finance, which will hinder the development of infrastructure, and become the bottleneck of the economic development. On the other hand, foreign inflows and the domestic private capital are idle. So the PPP (Public - Partnerships) mode can also solve these two questions at the same time.PPP model is a cooperative relationship between government and private organizations. And it combines the ability of planning, organizing and coordinating at government and the privates'capital support, advanced technology and high effective management, which lead to more favorable results than expected results by independent act. The PPP project financing model has special features of infrastructure and utility, such as large investment, numerous parties, long construction and operation cycle, complex technology. Which make PPP model faces more risks than traditional financing model. So to share the risk reasonable, that's a key element of success.The article has consulted massive literature, firstly introduced basic organizational patterns and operational procedure from basic concept and essence of PPP model. At the same time discussed the necessity to use of the PPP model at infrastructure. Next analysis the financing risk, which was classified as systematic risk set and unsystematic risk set, and also contains who sharing the risk. Finally through summing up, reading extensive literature, and following the principle of building index system, the author establishes index system of sharing financing risks. At the principles of risks allocation, used entropy method to determine the weights of the index. Then discuss the TOPSIS method to choice sharing partner.