Strategies To The Problems Existing In Government Regulation In BOT Project

With the rapid development of economy and the acceleration of the processof urbanization, the demands for water supply, power supply, sewage treatmentand other infrastructure projects become more and more urgent. However theseitems that have public product characteristics are always invested andconstructed by the government in the traditional pattern, which put a heavyfinancial burden on the government. As an investment and financing modeappeared in nineteen eighties, BOT model combines the government and projectcompany with the public interest perfectly, which is popular by every country inthe world especially the developing countrys.Since BOT mode was introduced toour country, it was used in highway, tunnel, sewage treatment plant and a widerange of fields, which have achieved good social effect and economic effect.The characteristic involving public interest of The BOT project decides thatit must accept the government’s supervision. In a BOT project, governmentregulation penetrates the whole process, including the project introduction,construction, management, transaction, and plays different regulatory roles indifferent stages. The BOT project also has the characteristics of big investmentand slow return, which requires the supervising function of the governmentshould be diversified, including not only the traditional limitations of regulatorymeasures, such as price regulation, quality supervision, also needs to take aparticular incentive regulation mechanism, such as the proper governmentguarantee and service measures of supervision.But at present the government regulation of BOT project in our country stillhas kinds of problems, and the government supervision mechanism is not perfect.The main problem lies in the following points:(1) The lack of legal regulation.At present the single legislation about BOT mode in our country is still blank, letalone the legal basis of government supervision to this mode. Only a few related legal documents also have many defects, such as low rank, conflicting.(2) Thegovernment supervision function is fuzzy. The phenomenon of governmentsupervision offside and vacancy is universal.(3) The restraint mechanism togovernment supervision is relatively weak. Restricted to internal supervision inthe government supervision department, which is difficult to bind the truemeaning.(4) The lack of professional talents in supervision team. So it is hard togive full play to the supervising function of the government.In the process of discussing how to improve strategy of governmentregulation, we should first determine the principles that the governmentregulation should follow to guide how to monitor the activities of theimplementation in the BOT project. This article expresses the opinion that thegovernment regulation should follow the following principles in BOT project:that the regulatory legal principle, serve for public interest principle, restrictionand incentive combination principle, independent regulatory principles andregulatory constraint principle. Under the guidance of the five regulationprinciples, this paper will perfect the government supervision strategy in theBOT project emphatically from the following several aspects:(1) Improve thespecial legislation to standard the BOT mode, standard the BOT mode throughthe legal form and the government regulation in this mode.(2)Pinpoint theposition of government’s supervision function. From the angle of giving full playto marketing, service, management of the regulatory functions of the governmentregulation, the nature and the standard of franchise system, the scope and contentof government guarantee, as well as the foundation of the governmentacceptance mechanism should be discussed in detail. Bring the incentiveregulation mechanism into government supervision functions, and determine thetheoretical feasibility of giving accurate localization to government regulation.(3)Restrict the government supervision department and supervision personnelthrough the establishment of external and internal double constraint mechanism,which will ensure the smooth implementation of regulatory activity and theestablishment of good government image.(4)Conduct regular training forsupervision personnel and recruit the right amount of professionals to involve inthe government supervision team, which will improve the quality of governmentregulation.