“…Risk allocation is considered to be the most fundamental principle underlying the long-term infrastructure PPP model (Grimsey & Lewis, 2000;Marques & Berg, 2011). From the perspective of governments, users, and taxpayers, risk allocation is crucial because it incentivizes private partners to focus on the life cycle costs of constructing, operating, and maintaining the asset rather than the optimization of short-term profit (Grimsey & Lewis, 2000;Carpintero & Petersen, 2015). Finding the most appropriate risk allocation is therefore key to successful PPP implementation (Shen, Platten & Deng, 2006), and in the case of building and operating transportation infrastructure, the risks assume even greater importance because of the large fixed investments (Albalate, Bel & Geddes, 2013).…”