Research On Financing Risk Allocation In Infrastructure Projects Based On PPP Model

Through cooperation between government and private organizations,PPP(Public-Private Partnerships financing model realizes resources complementary,resolves the problem of funds shortage for government investment in infrastructureconstruction effectively and opens up the investment channels for private investors toachieve the purpose of the "win-win". Under the PPP model, the infrastructureconstruction project has features of large investment, long life-cycle, and complexfinancial structure, with many risk factors, it has a more complex contract relationshipand many risk allocation partners compared with general engineering item. Due to theshort history of PPP models, practices are still in exploration phase, it also lack ofmature theory system to give guidance and has not yet reached a consensus for the keyfactors to project success study on risk-sharing method, and some of the theoreticalmodels of operation is not strong, all of which brings serious challenges to theimplementation of PPP projects. Therefore, to speed up the study of the PPPrisk-sharing has important theoretical significance and practical value. This research ismainly reflected in the following aspects:This article introduces the basic connotation of the PPP model,besides financingtheory and risk management theory.According to the industries characteristics indifferent projects under the PPP model, it analyses the risk of a variety of projects andidentifies the eight major risk factors, such as political risk, legal risk, financial risk,financing risk, force majeure risk, construction cost risk, market risk, operating risk,which PPP projects will be faced with in the implementation process on the basis ofprevious literature reading. It clears the five main undertakers in risk allocation，andthey are government departments and private investors who found the project company,loan lenders on the project, contractor on engineering and construction, and operatorafter the completion of the project. Then the paper analyzes the six basic principles andframework for risk-sharing,the factors that affect risk-sharing, and summarizesconsensus and controversy on the basis of existing research about risk-sharing.Departure from the principle of risk sharing, to build a risk assessment system. Usingthe improved Osculating Method to construct a risk-sharing model. At the end of the paper, the model is used for risk-sharing in a Sewage treatment plant in Guangzhou, toverify the reliability of the model.