Governance Mechanism Study On PPP Project Based On Contract Relationship

PPP model is a new type of project financing and implementation model developed in the market economy of public infrastructure construction. The introduction of multi-investment combined with the institutional arrangements of market-oriented competition mechanism can meet the requirements of efficiency in construction of public infrastructure. However, under the condition of market economy, PPP is not just a financing tool. The change in the financing structure of PPP project brought by private enterprises entering will cause the changes in governance structure inevitably. The governance role of private enterprises in the project organization has become an important reason for the improving of project management efficiency. Because of the complexity of investment subject and management model, PPP projects have been exeeded the studying scope of the traditional project management theory. It must be enhance to the high level of project governance from management to studied and resolved.According to the modern contract theory, the essence of PPP project is a set of contracts concluded by various participants of the project. An important role of these contracts is to define the rights, responsibilities and obligations between the element owners of the project organization, and give a reasonable division of the organizational rent. Thus, it promotes the mutual cooperation among various participants of project. In this paper, by the use of the analytical tools of contract theory, the issue of PPP project governance is researched from the perspective of the efficiency.General idea of PPP project governance is discussed at first. It analyzes the main features of PPP project contract, the cooperative game relationships of the contractor subjects, as well as the changing conditions from non-cooperative game to cooperative game, and points out the core issue of PPP project organization is the creation and distribution of the cooperation surplus value. Then the role of contracts in PPP project governanace is investigated. It compared the clear contract relationship with elastic governance mechanism and obtained that the governance efficiency of PPP project must be the cooperative efficiency among contractor subjects based on the implement efficiency of PPP contracts and distributive efficiency of surplus value rights. But because of the limitation of unilateral governance and co-governance, it must make full use of the relational contract to governance based on co-governance to realize the cooperative efficiency among contractor subjects.Then the governance content of investor, manager and contractor are studied separately with the frame of governance structure and the clue of contracts. (1) Governance mechanism of the shareholder of PPP project is analyzed from the the view point of financial contract and ownership structure. It discusses the basic conditions for private enterprise to participate in PPP cooperation and the core governance issue in different ownership structure. On this basis, the conflict and balance of the interest between government and private enterprise are analysed, and the ownership allocation between them are analysed by the game theory. So, it draws the conclusion that the moderate concentration of ownership can promote the formation of project governance structure by reasonable ownership control. (2)The governance method for project manager behavior and incentive and constraint mechanism is researched from the view point of contract relationship. By the analysis of the self-performing range and boundary of the contract between the project manager and owner, it proposed the contract governance way for project manager and studied the constraint contract, reward incentive contract and control rights incentive contract of project manager separately. (3)It discussed the selection of contractor governance mechanism and pointed out that the realization of contractor's cooparative efficiency need the use of relational contract and residual right disposition, as well as a model analysis of which was proceeded.At last, it designed an evaluation index system of PPP project governance performance and put forward a comprehensive evaluation method with a case study.