Study Of Risk Allocation And Income Distribution In Urban Sewage Disposal

With the rapid development of economy and the speeded-up of urbanization process, the public's increasing demand for infrastructure, It'was difficult for the government ,as the only leading infrastructure investor, to meet supply demand because of government insufficient financial resources. Insufficient investment for sewage disposal in pipeline construction and disposal facilities construction and operating inefficiencies led to the city water pollution. The pace of sewage disposal growth rate lagged behind the development of the city, seriously affecting the sustainable development of cities. By changing the government separate investment model in sewage disposal facilities in the past, the introduction of public-private partnership PPP (Public-Private-Partnerships) mode could solve the lack of sewage disposal infrastructure investment and inefficiencies of operational management. The PPP model not only uses private capital to ease the financial pressure effectively, but also improves the efficiency of government, while promoting other public infrastructure.The paper studied the domestic and urban sewage disposal status, analyzed of the PPP model applicability in urban sewage disposal projects and studied its development prospects. The paper studies two important problem of the PPP model using in the urban sewage disposal projects, namely the issue about sharing risks and benefits distribution. Firstly, the paper introduced the urban sewage disposal projects in the face of various risks, then used the risk-sharing principle of PPP project financing model, proposed risk allocation framework for urban sewage disposal projects, and allocated risk in a reasonable way. Through studying theoretical of income distribution, the paper proposed income distribution game model, by solving the Nash equilibrium the model equations, found the income distribution of the Pareto optimal solution. So both companies could achieve win-win results. Overall, the application prospects of the PPP model in urban sewage disposal projects was broad, and the results of the paper was of great significance in the promotion and successful application for PPP model in urban sewage disposal.