Research On The Institutional Obstacles And Measures Of Promoting The PPP Mode In China

The PPP mode is the whole cooperating project that the public sector and private sector share benefits and risks in the provision of infrastructures and public services. In recent years, with the accelerating of urbanization and industrialization, higher requirements of the efficiency and quality are put forward in the provision of the public services and public products. However, under economic new normal, the growth of fiscal revenue has declined;the local traditional financing platform is unsustainable. In order to solve the problems, such as insufficient funds, inefficient management, the government actively encourage private sector participate in the field of public construction and operation. At present, the application of the PPP project covers the road traffic, urban water supply, power supply, environmental protection and other social public fields.Although the PPP mode has a broad application prospect, the PPP project has a series of characteristic which cause many problems as a long-term contract. The duration of PPP is very long; participant in the contract have inconsistent target, and the project need a great quantity of money. Therefore, this paper which uses the theory of institutional economics, proposed the institutional obstacles and countermeasures of the development of PPP mode in two aspects. Respectively are internal contractual relationship and external system environment. On one hand, the internal contractual problems of PPP include inconsistent goal between participants, unreasonable distribution of risk and profit. On the other hand, the external institutional environment of PPP mode also has disadvantages. Legal system and mechanism of supervision is not sound, the social credit foundation is weak, and the related financial support is missing. Through comparing and referencing the international experience and measures with developed country, such as Britain, Australia, Canada and other countries, this paper proposes some suggestions. The government should complete the related legal policy, improve the regulatory system, actively cultivate the development of social credit system, and provide financial support in order to promoting the further development of the PPP mode in our country.