Allocation Of The Control Right And Cashflow Right Of The PPP Projects

The public-private partnership(PPP) has made an important contribution to the development of infrastructure projects by enhancing the efficiency of project construction and operations. The project’s stakeholders need to establish a scientific interests coordination mechanism owing to the uncontractibility of the PPP contacts. There is not only theoretical significance, but also crucial practical application value in researches on the control right and cash flow right matching of the PPP projects based on the reference point theory of the incomplete contract.This dissertation analyzes four types of major infrastructure PPP projects’ transaction structures and profit models such as the wastewater treatment project, solid waste project, toll road project and railway transportation project. The information disclosure quality of highway BOT projects assets is analyzed, with China Road &Bridge Kind of Listed Companies as objects. There are many problems in the financial disclosure. This makes it difficult for the public and private sectors to renegotiate and make decisions with the project management information. It is necessary to make correct accounting recognition and measurement about the PPP projects’ assets.Learning from the researches about the separation of the control right from the cash flow right in joint-stock companies, we determine the measurement methods of the control right and the cash flow right in PPP projects, and put forward the design proposal about the match of control right and cash flow right for these projects.In the presence of demand uncertainty, the sound combination of a MRG level and a royalty collecting rate can automatically regulate the project’s NPV criterion into a reasonable range under the common practice of a pre-determined concession period. The G&R scheme is verified to be more effective in balancing the risk and reward by improving the decision efficiency.The government guarantee is an important measure to transfer the risk of project and distribute the project’s residual income. By disclosing the cost and the potential fiscal risk of government guarantees, the government can strengthen cost conscious. The reasonable valuation of the government guarantee based on the social discount rate can also prevent the public and private sectors from asymmetric negotiations.