Abstract: As a device and mechanism to attract and promote social capitals to invest in public utilities, the public-private partnership (PPP) model has been extensively applied. The PPP model can reduce government’s risks in their responsibilities and performances, however, the risks involved in its whole life cycle and the cost derived from itself need to be focused on. The failed PPP project case of Spanish-French cross-border high-speed railway investment in recent years has not only alarmed China’s development with the PPP model, but also provided valuable lessons and enlightenments. At present, some PPP projects in some provinces in China are called off urgently, which reminds us that more considerations should be given to the PPP model. It is urgently required for us to establish the risk prevention and resolution mechanisms for the PPP model, which mainly includes the risk allocation, the restriction of social capital gains, and the clarification of the risk responsibilities of the government and the social capitals.

Key words: PPP project; Spain-France cross-border high-speed railway; risk sharing mechanism; the public utilities