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Study On The Public-private Partnership Model For Infrastructure In China

Posted on:2016-08-18Degree:DoctorType:Dissertation
Country:ChinaCandidate:X T WangFull Text:PDF
GTID:1109330470464946Subject:Public Finance
Abstract/Summary:PDF Full Text Request
Infrastructure is the foundation and important support in modern social operation, which is a public service system to ensure that nation or regional socio-economic activities in normal.Currently, the new urbanization and "Five Modernizations Sync" in China speed up constantly which raising higher, updated requirements to construction and operation of infrastructure. However, economic development in China has entered into a new normal, from the rapid growth to medium to high speed, local government debt reaches record highs frequently, government finance is limited, inefficient operations in public sector, etc. These factors objectively restrict supply of infrastructure and services, causing conflicts of supply and demand in infrastructure increasingly serious. Therefore, the field of infrastructure needs to introduce new investment, financing and management model urgently.Since 1980s, Global institutional revolution has been made public-private cooperative system as the main content. It plays a profound impact on all areas of society, it is changing the economic and social environment especially in the field of infrastructure. The nature of the public-private cooperative system is giving full play to their endowments for Institutional arrangements of mutual cooperation between government (public) and private sectors. At the macro level, it is an institutional arrangements and institutional innovation related to the infrastructure, it has tendencies of intrinsic motivation and saving internal transaction cost. It also has been induced institutional change, it is a gradual form Pareto Optimality improved and mainly reflected in the financial and management innovation. At the micro level, public-private cooperative system plays an important role in reaching best-value for money, providing better services and creating excellent social benefits, its core purpose is to achieve value for money, to maximize value for money. The article aims to be directed by public goods and services provided principle, analyze the current development of China’s infrastructure based on theories related to infrastructure and public-private cooperative system, investigate the improvement of public-private cooperative system’framework and new development mechanism of project implementation by learning from foreign experience in public-private cooperative system of infrastructure. The article mainly elaborates by the following five aspects:Firstly, it systematically analyses the infrastructure characteristics by using public goods and externality theory, including supply and demand, production and consumption characteristics and so on. It stresses the property of infrastructure quasi-public goods. A large number of domestic and foreign practices have proved that Infrastructure had a positive externalities, infrastructure produced economic society a wide range of positive externalities which including promotion of economic development and transport facilities and improvement of living standards. Due to infrastructure has attributes of public products and salient features of positive externalities. Therefore, government departments should play a proactive role in construction and operation process of infrastructure, and support infrastructure through legal, policy and funding etc. At the same time, based on project discrimination theory, most infrastructures also have attributes of private products, including good economic returns and development of related industries. Therefore, infrastructure development requires active participation from private sectors accordingly, taking advantages of technology, management, service and innovation from private sectors for better service in infrastructure fields.Secondly, using theory of new public management and government functions to analyze differences of interest objectives between government and market in infrastructure construction and operation process. In the field of infrastructure supply, universally, there is inconsistency in the interest targets between the government and the private sector, it is objectively difficult to form common interest objectives based project interest as centre for both sides. Emphasizing public-private cooperative system is an important measure to improve the government’s public service, based on the behavior of the public sectors, the study builds framework for public-private cooperative system in nation infrastructure by identifying, defining the roles and functions of government departments in infrastructure and operation, it provides theoretical guidance for reconstructing and optimizing infrastructure public-private cooperative system.Thirdly, it provides experience for the development of the infrastructure public-private cooperative system in China through comparing history and current status of the infrastructure public-private cooperative system abroad. Combing development overview of infrastructure public-private cooperative system in UK, USA, Canada, Korea and other countries systematically. it summarizes each national development experiences and analyzes characteristics of national public-private cooperative system, successful experience as well as pros and cons. It presents experience of enlightenment in choosing infrastructure public-private cooperative system, including legislation, institutional settings, collaboration of public-private sectors led by government, major breakthroughs based on national conditions and so on.Fourthly, the use of government functions and institutional supply theory explores the framework of Chinese public-private partnership infrastructure. At the macro level, analyzing Chinese public-private partnership infrastructure policy, proposing that establish the national public-private partnership infrastructure institutions, straightening out the cooperation process, establishing the supervision mechanism, clearing the supervisory duty of legislative institutions, audit and the public, building the public financial management framework of the public-private partnership which including the control of financial risk, the government promised budget and the disclosure of financial accounting and reporting, perfecting legal laws and regulations which including special regulations and industry supervision.Fifthly, using the public-private partnership theory and the principal-agent theory to innovate the implementation of public-private infrastructure projects.At the micro level, analyzing systematically implementation, recognition and assessment of public-private infrastructure project. Proposing a more reasonable risk-sharing principle and designing a preliminary risk-sharing framework on the basis of systematic research on risk sharing and income distribution policy in public-private partnership project. According to the above analysis, designing contracts including performance, payment mechanism, the adjustment mechanism, dispute resolution mechanism and termination, implementing the transaction management on public-private partnership including project procurement management, market promotion, qualification, process management, execution of contract and the completion of the financing, and managing contracts including establishing contract management structure, monitoring and managing risk, managing the change of contract and the expiration of the contract and the transfer of assets, them provide a theoretical basis and method guidance to improve the construction and management on public-private infrastructure projects.Finally, analyzing the experience and lessons that we use public-private partnership approach to construct the infrastructure by case analysis. Differences between the Olympic Stadium as the social infrastructure and the Beijing Metro Line 4 as the economic infrastructure were introduced by comparative analysis, analyzing differences between property rights, risk allocation and income distribution of the participation of all parties under public-private partnership, verifying the rationality and the validity that infrastructure construction using public-private partnerships approach. The last, we propose recommendations for improvement and for promotion public-private partnership shifts in infrastructure construction.
Keywords/Search Tags:public-private-partnership, infrastructure, construction, operation
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