Research On The Standardization Of PPP Project Contract In China

The concept of PPP mode has been bring to China since e in the early 90 s of the last century, but the Chinese government used it as a tool to solve the financial problem with a pragmatic point of view, and failed to recognize the PPP mode can promote the efficiency of public service. Therefore, it lacks the top-down design of the relevant institutional arrangement and implementation procedure, leading to an unstable status of the policy during the development of PPP mode, and performance as the policy conflicts between national and local, before and after, governmental arbitrary default, which has created a huge risk for private capital investing related fields. Since the report of the 18 th National Congress of the Communist Party of China to make sure that private capital to participate in the urban infrastructure investment and operation, the government parties invested great enthusiasm in the PPP projects. However,this kind of attempt without sufficient research buried huge hidden trouble in the construction and operation process of these projects. Although since the year of 2014, the government has adopted a series of guide regulations of PPP mode, but the top-down design system of PPP mode is still not complete. An important step has taken compared with before, but the guide regulation related to PPP mode still exist many problems. Due to the PPP project contract is the core of the PPP mode, this Paper will take it as the breakthrough point, solve the problem of PPP projects in the application process may occur by standardization research of PPP project contract.The standardization of PPP project contract is an activity of regulating the PPP project contract and forming a unified text, to make it become the criteria and basis toabide by, between the main parities in the process of PPP project. Because PPP projects always involve the huge investment, many parties and the time span is quite long, so a generalization and standardization system or text is necessary to reduce the negotiation time, then speed up the transaction, in order to reach the consensus of risk allocation between the parties and form the general practices. In this article, I want try to standardization research the PPP project contract by the elements of PPP contract system, theoretical analysis, combined with literature research, which will help to be more comprehensive understanding of PPP mode.This paper is divided into four chapters:The first chapter defines the PPP concept and analysis the PPP contract system,including deconstructing of the legal subjects and legal relationships in the PPP contract system, which explain that the characters of PPP mode and the PPP project contract is the core of the PPP system. Because the project contract balances various interests between a lot of parties during the process of signning, it is necessary that the contract is relatively confirmed and complete, with a high degree of professionalism. However, in the view of the practice in China and many western countries in the initial stage, the aspects above are lack of. So the standardization of PPP project contract is urgently needed.The second chapter analyzes the necessity of the standardization of PPP project contract. First of all, it defines the connotation of standardization of PPP project contract. Then, it analyzes the purpose of the research on the standardization of PPP project contract. It should include allocation of rights and obligations, risk allocation,dispute settlement, the standardization of the methods, in order to consolidate the consensus between the parties, reduce the cost of transaction, and make PPP projects have a relatively stable operation and specification. Secondly, the stable operation and specification mode depend on the mandatory of the standard text of the PPP project contract. Mandatory and normative promote and interact mutually, therefore, the validity of the standard text of the PPP project contract must included in the research.In addition, this chapter also doing some research on the theories which has impact on the PPP project contract, such as public good, whole-of-life and information asymmetry.The third chapter focuses on the analysis of the PPP project contract system in Australia and the United Kingdom’s "PFI standard contract". These two countries usetwo different standard forms to regulate its PPP mode. The Britain regulate the PPP project contract with the standard text, which is detailed and reasonable in the relationship of rights and obligations between the parties, the division of the phase of the project and so on. The structure and content of this standard text can be use for reference to China. While Australia use ‘National PPP Guidelines’ and the approval process to regulate the the PPP project. Although there is no standard text in Australia,the mandatory and implementation force of the related laws of PPP mode is significant to our country.Combines the analysis and conclusion of the previous three chapters, the fourth chapter tries to design the standard text of PPP project contract in China. Firstly,review and evaluate the standard text of PPP project contract of China. Secondly, sort out the construction principles and legal environment of the standard text of PPP project contract from a macro point of view. Then, combine the analysis before especially the foreign PPP standard contract, and design the framework of the standard text of PPP project contract.