Contract Realization of Risk Allocation Plan for PPP Municipal Infrastructure Projects in China: A Case Study

Abstract

As is well-known, risk allocation played a key role in the process of risk management of PPP municipal infrastructure projects. In China, thousands of PPP projects are initiated by all levels of local governments. However, it is not known whether the risk allocation plan came true in contract. How to identify risk factors, methods of risk allocation and risk response measures were payed attention by current researchers in PPP risk area. But there were few students focusing the question about contract realization of risk allocation plan, especially in Chinese municipal infrastructure projects. Based on case study method, this paper proposed that most of the risks which allocated in execute plan are actually implemented in the contract, but not all. This research can militate positive impacts for the risk allocation and contract signing process, so as to enhance the effect of risk allocation and improve the value for money of Chinese PPP municipal infrastructure projects.