Study Of Risk Allocation And Income Distribution In Highway Public-private Partnership Project

With the rapid development of China’s economy and society, the dramatic increase ofvehicles capacity, the rapid growth of logistics and the further increase of traffic flow, thewhole society has increasingly demand of the highway. On the one hand, the limited financialresources of our country can not be solely responsible for the highway construction funds. Onthe other hand, sufficient private capital is seeking better investment avenues and channels，and the investment in highway projects is famous for “small risk and relatively stableincome”. The introduction of public-private partnership PPP (Public-Private-Partnerships)mode could solve the above two problems at the same time. It not only combines theplanning, organization and coordination ability of the government agencies, but also has thefinancial support, advanced technology and high management efficiency of the private sector.It can make the various partners achieve a more favorable result than alone action.On the basis of a large number of literatures, the study of two pivotal questions, the risksharing and the income distribution, which impact the success of the cooperation of publicsector and private sector in expressway PPP project is conducted in this article. First of all,the article analyses the PPP model on its intension and generalize the characteristics of risksof expressway PPP project. It also combining with the characteristics of the highway analyzesthe application status of the PPP mode in highway infrastructure construction. Then, thepaper analyzes the risks of the PPP model in the highway project, and then put forward amore reasonable risk-sharing principles as well as a risk-sharing framework accordingly. Themulti-stage game income distribution model of expressway PPP project has been built byqualitative analysis of the basic income distribution principle and taking advantage of theknowledge of game theory. By solving the model, we can calculate the equilibrium ratio ofincome distribution and the optimal level of effort. Overall, the application prospects of thePPP model in highway projects is broad, and the results of the paper is of great significance inthe promotion and successful application for PPP model in expressway.