Research On Profits Distribution Of Project HG Based On The Revised Shapley Value

With the PPP mod being introduced into Chinese market,and being popularized by Chinese Central government after the 18^thcongress.It has been a great heat of operating PPP mod in China between 2012-2016,improving the level of local infrastructure and economic development.The mod is widely used in the industries of rail transport,pension,communications etc.In the heat of PPP mod,many Chinese local government choose it to launch projects which were lack of financial support.In the mean time,many state-owned enterprises aim at the new market,bringing the business of construction and long-term investment benefits.With the introducing of private funds,the local financial difficulty is solved and thus many projects are funded.However,after 2015,the government gradually strengthen the management of PPP mod,it goes into an ice age.Firstly,with a mount of PPP projects enter into implementation period,many of them are facing the financial pressure of investment or return the money to the investors.And the financing of the project is always later than the start of the construction.The financial institutions usually asks a lot of policy conditions including the project enter the China Public Private Partnerships center and third party guarantee etc.Secondly,in China,PPP mod is widely used on the projects which can not generate enough profit to cover the investment,like municipal roads and pipe galleries.When the project is tested to find out whether the local government can afford to pay,the income increase of local government is usually optimistically estimated,leading the local governments'financial crisis.Many of the local governments are warned by central government.Thirdly,in China,the government would not want to give private capital a huge number of pay back,they set a lot of troubles in the process of building,operating and transfer,which ultimately leads to the increase of costs of the mod.Facing the great difficulty,many participants adjust the project to meet the regulations,using the ways of reducing the investment,extension the term or even exit the mode.In the mean time,the regulations keep changing,the law of PPP mod still not enacted,many projects is facing stagnation or exiting.The paper takes project HG as the research object.The project is early implemented using PPP mod,experiencing two big changes including changing the term of cooperation,reducing the investment and replace the mod of paying back the investors.Thus the project HG is worth researched.The paper analysis the project's problems,stakeholders,and the reasons behind them.Take private capital,government funded representative,and the bank as the main stakeholders and consider the distribution programme to meet there needs.Then,the paper uses the method of Shapley value to build a model for distribution of three stakeholders.However the method of Shapley value do not take risk sharing,investment proportion and contribution of rescuing the project,satisfaction coefficient and contract performance into consideration,making the programme not good for fair and inspiring the stakeholders to operate the project better,the paper quantize above factors and fit the model of distribution.Finally,the paper analysis the applicability of the model and discusses the methods to implement and popularize the model.