Study Of Risk Allocation And Income Distribution In Public-Private Partnerships

PPP has been successful applied abroad as a new model of public infrastructure construction. For a developing country going through transition from planned economy to market economy, the relevant research on how to apply PPP model in the infrastructure lacks yet. This paper studies on the PPP model of the private capital investing into the infrastructure project.Firstly, on the basis of a lot of literatures, this paper analyses the PPP model on its background, intension, basic structure as well as its characteristics, Comparing with traditional model of project management, and founds out that the PPP model has some advantages as it can fully make use of private capital advantages as early as possible, allocate risk reasonably, make cooperation in harmony and form a long-term mutual benefits among all participants. Based on China's situation, this paper researches the necessary and possibility of setting out the themes which apply to various forms of PPP models in China.Secondly, the research of two crucial questions, which mean the risk allocation and the income distribution, in the cooperation of public sector and private sector in PPP project is done. This paper analyzes the risk of PPP model applying in infrastructure construction and public service. and then proposes more reasonable risk allocation principles as well as a framework for risk allocation accordingly. The income distribution model has been set up by qualitative analysis of the basic income distribution principle and considering the influence factors.Finally, with empirical analysis, this study and the theoretical method possess operational significance and it also offers some references to the financing item of the PPP model.