A Study Of Financing Risk Sharing Mechanism In PPP Project

In recent years, the construction of infrastructure in china has procured huge development. It causes the serious deficiency of public product supply, as government continues to be the leading factor of public project supply, which lacks for financial resources, technology and management. The lack of public product supply has bottlenecked the further development of economy. The rapidly development of private economy witch accumulate very large capitals and technological foundation become potential public product suppliers. Under such a background, both of the theory and practical areas are paying attention to how to shift the social resources to put into public infrastructure construction, realize the broad participation of social fund under the guidance of the government, and change the simple financing mode relying on financial investment.PPP (Public Private Partnerships) mode as a new kind of project financing mode makes public department policy supports and the private investor's abundant fund, advanced management, rich managerial experience together, and has lightened the financial pressure, has improved operation efficiency and service quality. This model has already been applied to the construction of urban infrastructure projects. There are many complicated financing risks in PPP project for PPP mode usually have the characteristics of long construction period, enormous investment, complicated financing structure, and numerous participant and so on. Financing risk has become a crucial problem to PPP project.The article has consulted the massive literature, firstly obtained from basic concept and essence of PPP model, introduced basic organizational patterns and operational procedure. Secondly, the article carried on deeply analysis of the financing risks and the main partners, shared the financing risks into eight risk sets and cleared allocating risks and risk divider. The article has constructed the financing risk sharing index system under PPP financing model, and has established the risk sharing model using gray relational analysis. In the risk sharing model foundation, the proper attention to both project participation side and the project overall benefit, the problem of financing risk sharing mechanism has been analyzed and research, and designed proper risk sharing mechanism of PPP project.