Research On Risk Allocation In Implementing PPP Public Projects

In the urbanization process in China, the demand of all kinds of public goods and services is growing. It's difficult to meet the huge demand for public goods in the short term if simply depending on local government investment in public goods. Therefore, the government have adopt a number of policies to encourage private capital to invest the construction of public goods in PPP mode, so as to reduce the financial pressure on local governments and ensure the quality of public goods with the advanced project management level of private capital. Since PPP public project has long cycle and many participants, the risk is more complex, and how to reasonably allocate project risks becomes a problem to be faced in the development of PPP mode.In case of an office building project of a science industrial zone in Xi'an, the research of this paper mainly focuses on risk allocation in implementing PPP public projects. Firstly, this paper studies the development status and research status of PPP model at home and abroad, and analyzes the results and the lack of research to identify the research breakthrough point of this paper. O n this basis, this paper analyzes the characteristics and classification of public goods and PPP model, and studies the possibility of private sector investment in public goods. Then this paper summarizes the basic theory of risk allocation in implementing PPP public projects and determines the risk sharing principle. This paper identifies PPP project risks comprehensive and systematic from multiple dimensions, and analyzes behavioral characteristics of the participants to determine the allocation process of project risk. According to the project risk-sharing process, with triangular fuzzy numbers and expert evaluation this paper constructs the preliminary project risk-sharing model, and based on utility theory constructs project risk allocation model to achieve the initial sharing and sharing of project risk. Finally, an empirical analysis of a science industrial zone office building project in Xi'an is done which verifies the rationality and applicability of risk allocation model of PPP public projects.Identification PPP project risk system established by the study helps the parties to understand their own risk in the process of the decision-making, implementation and operation of the project, which ensure the objectives of the whole project. The study have constructed project risk allocation model to analysis the risk allocation of an office building project of the science industrial zone in Xi'an, and which will be used to Al ocate the PPP model public good project.