Abstract
Public rental project is a protection scheme putting forward for the low-income currently in China. But its promoting and building face great obstacles because of the constraints of financial resources of government. There is however a critical issue in its application that it’s hard to reach an agreement for risk allocation and operation process between the public and the private sectors, resulting in a relatively longer negotiation period and a higher transaction cost. This paper analyzes firstly factors affecting the risk allocation of PPP public rental project and then discusses the operation process of public rental project under PPP model, and analyzes the pricing mechanism and its safeguards of the model. Conclusions of the study can provide guidance to improve risk allocation in PPP public rental project.
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