The Model Research of Risk Allocation on PPP Project Financing

This paper reviews the literature on the risk allocation mechanism on PPP project financing. Based on this, a risk allocation program model involving a risk allocation utility model and a bargain game model is made. The first model called risk allocation utility model is applicable to identify what risks are allocated by both public sector and private sector, while the second model called risk allocation bargain game model is to present the risk allocation scale between public sector and private sector by analytical method of there phase bargain game. The contribution of this paper is to put forward an integrated and qualitative risk allocation program that can offer the theoretical and practical guidance on the risk allocation on PPP project financing.