Research On The Risk And Profit Of The PPP Project

With China's rapid economic development in recent years, the demand for urban infrastructure is also growing in the past, most countries of the water plant, roads, railways, hospitals and other infrastructure are built by the government and the sector investment ownership and management. However, this traditional model is the lack of efficiency of construction management, but also by funding constraints have seriously affected and restricted the country's economic and social development. So the new government needs to start thinking about the role of government public services, and vigorously promote the cooperation of the government and the private sector, PPP pattern has been applied to urban infrastructure construction.Public-Private Partnership (Public Private Partnership, referred to as PPP) is an emerging infrastructure mode, in PPP mode, government departments and the private sector to form a good partnership. PPP financing is conducive to risk and profit sharing, but also a risky, difficult and innovative investment model. In this paper, the private sector investment in public infrastructure and public service projects PPP model was studied.First, read the literature, based on the analysis of the PPP financing model and the basic characteristics of the content, and compared to traditional project management model that the PPP mode to play a more private capital, a reasonable allocation of risk, etc., among the project participants can the formation of mutual benefit and mutual assistance, coordination of the partnership. Then in the financing of infrastructure to analyze the situation, the combination of conditions, discussed the introduction of PPP model for infrastructure projects the need and feasibility.Finally, the PPP project, the key issue:how to carry out the distribution of benefits under the risk-sharing problem is studied. In the analysis of urban infrastructure construction in the PPP model on the basis of risks, through the PPP mode of income distribution on the basic principles of qualitative analysis, and risk of the use ISM approach by all levels to clearly understand all the risks the project grade level to the risk level according to different given the different concerns, the greater the risk the greater the responsibility of the corresponding bearers. On this basis, the use of fuzzy comprehensive evaluation method to different levels of risk given weight. Finally, according to the size of the risk partners income distribution, the allocation of risk in the project based on income distribution model. Ultimate combination of empirical analysis, this study illustrates the practical significance and theoretical methods for the PPP mode, the construction of urban infrastructure to provide a reference for income distribution.