The Study Of Allocation Of Control Rights Of Public-Private Partnership Highway Project

Franchise mode has been introduced to the infrastructure construction field in many areas of China. At the beginning, BOT mode, namely the construction-operation-transfer, was widely used. As the PPP mode can effectively make up the deficiency of the BOT, the PPP model gradually become a mainstream in recent years. Due to the unique economic attributes of the highway, the reasonably control of government become the focus of attention. And the key factors that affect the efficiency of public and private cooperation were the configuration of control rights. Based on this, this article carried out the research from the following aspects.(1) The paper systematically elaborated and summarized the research status of the PPP project control rights domestic and abroad. And summarized and analyzed the necessity and feasibility on the highway to take PPP mode. Then concluded the relationship among the PPP project stakeholders.(2) How reasonable pricing influences the optimal control allocation. The main motivation of private sector invest on a PPP project was to get income. As the main factor which influences private income, pricing directly determines the enthusiasm of private sector investment. Based on this, a new regulation mechanism was proposed. Optimal ownership structure was constructed on the condition of private consortium independent pricing, which improve the isolated perspective on solving the past project ownership problem.(3) How the concession period influence the optimal control rights allocation. Concession period of PPP project started from the validation of franchise agreement and lasted for a certain period of years, including the construction period and operation period. The Concession period of PPP project and the control rights allocation, are essentially the risk sharing and benefits balanced between the parties for the public sector and private financial to the effective response to the uncertainty in the concession period. Therefore, reasonable concession period can balance project cash flow, and secure the corresponding investment income of all investment parties.(4) The link between effort level of private enterprise and control rights allocation. The output of social benefit was largely influenced by effort level of private enterprise. As the output of social benefits is mainly in the operating period, and social benefits of highway included driving the economic development of the region along the passage, better service, technical innovation, the raise of level of company management and reduce the cost efficiency, etc. These aspects were mostly influenced by the effort level of private sectors. Therefore, by studying the relationship between control rights configuration and the effort level of private sectors, the government can reasonably control the rights allocation and attain the target of improving the effort level of private sectors.