Government-led rural Infrastructure PPP Project Risk Allocation

Abstract

The rural infrastructure PPP project can alleviate the government's financial pressure on rural infrastructure construction to a certain extent, and the reasonable allocation of PPP project risks is a key for the progress of the PPP project. This paper based on the principle of government priority bidding, uses the bargaining game theory to establish a bargaining model for risk allocation of PPP projects under incomplete information, and calculates the risk allocation ratio between government and private sector by calculating the Nash equilibrium. Finally, the beautiful villages PPP project in the Shangyu district is taken as an example to provide a reasonable plan for determining the proportion of risk allocation. Keywords—Rural infrastructure; PPP project; risk allocation; government sector; private sector