Study On Interests Coordination Mechanism Of Railway Public Engineering

According to the "medium and long-term railway network plan" and "the eleventh five-year plan", during the period of eleventh five-year, over 200 railway projects will be continued or new-arranged, the total number of new line construction will reach to 20,000 kilometers, the total investment is 1. 25 trillion yuan, 357 percent increased than the "10th Five-Year" period. Such a large-scale railway construction has made it clear that: China's railway network construction has entered a new round of historical period for large-scale construction. And it is also facing many problems in the development of the railway, such as fund shortage in building, confidence shortage of investors, project management methods backward, large unproductive resources consumption and so on. This situation was caused by the following factors:1. the confusion management system between government and enterprise did not change fundamentally in railway sector. In the construction process of railway infrastructure, the model "construction, management, utilization" is still very common. Under the administrative monopoly of railway construction, funds are difficult to access, thus resulting in the imbalance between investing and financing.2. The reform of railway construction management model is not complete. Under the "path dependence" in the planned administrative system, the project operating is still constrainted by policy and institutional conditions, which make mechanisms not fully used to regulate the project resources, thus resulting in non-equity competition. 3. With the drive of market-oriented reform for railway infrastructure, the old interests pattern of the railway public works projects was broken, the new interests pattern is emerging, and interests disputes and friction is frequently happen. But currently, it also lack a reasonable, systematic interests control mechanism to restrain the new interests relation, and it is imperative to make a system measures to protect the legitimate rights and interests of project participants and other parts involved.Through systematic thinking and study these issues, combined with the new paradigm in current international public projects - project management theory, this paper is trying to govern and coordinate the interests relationship in the process of public railway project under the project institution and mechanism design level, so as to solve those issues which are difficult to solve through overcoming the management paradigm or technology paradigm. Therefore, this paper puts forward the conceptual model of constructing interests coordination mechanisms in the railway public projects and the relevant governance paradigm.In this paper, the author uses theoretical analysis, empirical research, game theory, horizontal and vertical analysis and other research methods to deduct and demonstrate research goals; learn and absorb project organization theory, project distinction theory, public goods theory, principal-agent theory, stakeholder theory, companies and project management theory, new institutional economics, information economics, game theory and the company (the project) governance theory and method to analyze and study the definition, characteristic, role and relationship of various stakeholders in the public works projects, it also study game and conflict, and the effect which project environment have on project and so on. Besides, based on the project management theory and stakeholders theory, the paper puts forward the definition of interests coordination mechanisms in the public works projects, which includes internal interests coordination mechanism, external market coordination mechanism and government supervision mechanism.Currently, although the domestic research on public projects is gradually concerned with the deep-seated problems of government investment project management and its mechanisms, the public works projects trading system reform and innovation research is still in its early stage, especially for the public railway projects, there are still many problems left as a result of planned economy, the market-oriented reform is still in its initial stage, many practice areas still lack strong theoretical guidance. This paper analyzes and studies how to coordinate the relationship among all the main interest involved in the construction of public works projects, in order to reduce transaction costs, improve project performance level. Starting from this, the paper builds an interests coordination mechanism in railway public works projects, which will not only expand the new ideas of researching railway public projects governance mechanisms, but also give intellectual support for scientific decision-making and modern management in public works projects.