Study On Risk-sharing For Public Private Partnership In Water Industry

The model of the Public and private sectors work together to provide publicproduction and public service Collectively referred to as Public-private partnerships,Referred to as PPP. As the new financing model for public infrastructure had beensuccessfully applied in foreign, to meet the need of the rapid development of nationaleconomy and Urbanization requires to Accelerate the process of public infrastructure. Tosolve the problem of fund gap and high consumption low efficiency.We need toResearch how to use the model of PPP successfully applied to the public infrastructure.In order to ensure the successful application of PPP in public infrastructure, solve therisk-sharing issues of PPP has Significance. The article researched the water industry andthe relatively PPP theory,analyzed necessity and feasibility of introducing PPP to waterindustry, introduces the development of the PPP in water industry aboard, classified therisks faced by PPP into systemic risk and non-systematic risks,analyzed the problemsand reasons led by risk of PPP in water industry with producing the successful and failcases, analyzed how to identify shared-risky and non shared-risky of PPP in waterindustry with knowledge of game theory and information economics, build Bargainingdynamic game model based on completed Information, confirmed the proportion ofshared-risky between public apartment and private department based on negotiations lossfactor and negotiating fixed costs, finally proposed risk sharing countermeasures ofpublic-private partnerships in the water sector.