Research On Risk Allocation Of Infrastructure Project In PPP Financing Model

Recently,the PPP model is to solve the lack of money in infrastructure project which have been commonly used in many countries.This model can realize the diversification of investment and risk sharing.However,risk allocation in PPP projects is complicated and varied because of many parties which involved in PPP projects pursuit for different goals.The rationality and fairness of risk sharing can not only improve investment environment that private capital can participate in infrastructure construction,but also can reduce the total cost and duration.Therefore,the reasonable and effective of project risk sharing is the key factor to ensure the success of the project.Firstly,this article refers to a large number of correlated literatures and sorts the relevant documents.Summarizes every risks sharing principle presented in a variety of high level journals,and analyzes the existing risk sharing method,for example the case study method,the statistical research method and the quantitative model.Besides,we describe the key concept of infrastructure project,the related concepts of PPP financing mode,game theory and grey TOPSIS decision theory,which establish the theoretical foundation of the paper.Secondly,we definite the risk sharing subject,namely the government and the private sector on the base of above-mentioned.We identify project risks through literature research method.Furthermore,we summary the major 29 risk factors which often appear in PPP projects.This paper have determined five important risk sharing principles,such as the effective management,effective control,risk sharing preferences,lowest cost management and the upper bound principle of risk sharing.Thirdly,use the method of cooperative game to determine the upper bound principle of risk sharing of the private sector in this paper.And according to the PPP project risk sharing principle,a risk allocation decision-making model based on fuzzy TOPSIS with three-parameter interval has been established considering the key factors influencing and the upper bound principle.Finally,this paper makes application for the established model using case simulation method for the following chapters.We obtain the following conclusions: on the one hand,the upper bound principle of private sector is 40%.On the other hand,confirm the risk sharing scheme in this case.Last but not the least,propose contract organization suggest according to the characteristics of the PPP project.We try to find out the shortcomings of existing research and prospect the future research direction in order to provide reference for the research in this field.