Research on the Risk-Sharing of PPP Financed Project in Construction Industry

摘要

Public-Private Partnership is gaining more and more popularity and concerns worldwide as a financing mode for the construction industry. In the actual application process, it is often very hard for the public sector and private partner to reach an agreement on the distribution of risks, which significantly prolongs the negotiation time and increases transaction cost. This paper systematically introduced the various risks that may arise in PPP project financing, and summarized the factors that influence the allocation of risks, proposed the principles of risk sharing and further introduced the mathematical model for risk sharing.