Legal Issues Of Bt In The Operation Of The Project And Its Legislative Perfection

BT (Build - Transfer) mode (bellow as BT) is a new type of investment-construction mode which originated from the BOT. Since 2000, BT is widely used in our subways, highways, bridges, sewage treatment projects and so on, has play an active role in solving the short shortage of budgetary funds for local governments, speeding up infrastructure construction and public services projects. However, due to the complexity of BT operation, inadequacy of theoretical and practical knowledge and research, and shortage of specific Chinese legal statement and regulations on BT project, all of above have resulting in great legal issues and disputations for BT project on real operations. Lack of unified and specific resolutions for those legal problems from BT operations have been limited the further development of BT in China.BT has its practical value and developing space on our infrastructure and public services projects. Meanwhile, all kinds of legal problems and disputes continuously came out after the 10 years application of BT in China. It is necessary to carry out systemic summary and analysis for those problems, in the expected of forming some consensus, reducing and eliminating disputes.This paper attempts to make efforts to solve the problems: focus on the BT problems that could not be covered by existing legal framework; propose a series of suggestions for improving legislative changes in the future; so as to promote a better environment for the development of BT in China.In addition to the introduction and conclusion, the paper was divided into three chapters to discuss the legal problems result from BT operation and the improvement of related legislation. Chapter one was about the definition and legal feature of BT. First, defined the meaning of BT, and then analyzed the characteristic (including both of the operating features and legal features), finally described the differences between BT and old traditional construction mode such as BOT, Agent-construction System and Contract with One's Own Capital. Chapter two indicated main legal problems from BT Operation. Analyzed the concrete implementing procedures and steps of BT; stated detail operation mode of BT, and expressed negative concern on the legality of establish Project Management Department for operation. All of those opened up four main legal problems existing on BT operation: first, legal nature existing on BT Investment Contract has its dispute; second, legal status and legal relationship on BT parties is not clear; third, project transfer and buy-back have some problems on tax and buy-back guarantee etc.; fourth, other problems of BT such the scope, administrative management system and contracting methods. Chapter three was the measures and suggestions for improving BT legal environment in China. First, speed up to establish contract mode document for BT investment and construction project, set a united demonstration and guide for BT operation all around the country. Second, formulate normative legal document on BT operation to explore and accumulate practical experience for BT Legislation. Third, modify the laws and regulations that incompatible with BT practice. Fourth, formulate special concession law for BT when the time is up.The study of this research was completed by the full combination of theory and practice: mainly used the combination of comparative analysis, empirical analysis and interpretation of the inductive method; based on existing legal theory and practice of BT investment and construction at home and abroad, combined with my own experience and view on join in the BT practice project.