Abstract: The non-profitable government investment projects can effectively invite diversified investors by introducing franchise and solve many questions such as the shortage of funds,the vacancy of the main investors,and the invalidation of the incentive mechanism.Through constructing a dynamic game model between government and the project company during the construction and operation of a non-profitable government investment project,the paper will analyze the mutual influence among concession period,construction cost,compensation and other factors,thus determining the concession period scheme and the construction cost and compensation.Numerical analysis results show that the compensation of non-profitable government investment project has certain incentives to the project company.

Key words: non-profitable government investment Project;franchise；dynamic , game;concession , period