PPP Legal System Construction In China

From the reform and opening,nearly 40 years,China's economic development is accelerating;people's living standards are also rising.At the same time,the public put forward higher requirements on the level of infrastructure construction.On the one hand,due to the construction of infrastructure needs a lot of money,local governments are increasingly unable to bear the huge investment in infrastructure construction;on the other hand,many social idle funds cannot be fully utilized,resulting in a waste of resources.PPP mode can solve the problem.China began to introduce foreign investment from the end of the 20th century,until November 2013,the Third Plenary Session of the Eighteenth Central Committee decided to allow social capital through franchising and other ways to participate in urban infrastructure investment and operation.China's PPP model can be described as experienced from the rapid development process,it also means that the central level accept the value of PPP model.It can be seen that the PPP model plays an important role in solving the financial difficulties and technical problems of local government infrastructure and public facilities construction,such as the smooth operation of the Beijing Metro Line 4 project.However,due to the late start of China's PPP model,lack of theoretical research,the incomplete legal system,there are many problems in practice.PPP legislation level is confusing,funding source for the project is single,the role of the government is difficult to change,the project evaluation is difficult to determine,risk sharing mechanism is not perfect,the nature of the agreement is not accurate and too simple.Government departments are paying or are going to pay for the huge costs,the private sector also bear many uncertain project risks,and ultimately the public interest has been damaged.As a new mode of cooperation,the PPP model combines the overall planning of government departments,the advantages of planning organizations with the advantages of private sector idle funds and management technology,so that the two sides can achieve more favorable results than the separate actions.By drawing lessons from the experience of foreign countries and combining with China's national conditions,the legal stipulation is the prerequisite to ensure the smooth development of government and social capital cooperation.The legal system can provide the corresponding legal basis for cooperation between government and private sector,clarify rights and obligations,share the project risk reasonably,and safeguard the interests of all parties,to ensure the normal operation of the PPP model.This paper is divided into four parts.The first part mainly discusses the theoretical basis of PPP model,expounds the origin and concept of PPP model,function and characteristics,theoretical basis,legal relationship analysis,classification,etc.,to understand the modern sense of the PPP model originated in the UK,China to promote PPP project source after the reform and opening up,the introduction of foreign capital phenomenon,PPP model generation theory can be summarized into four,namely,project distinction,public goods,government failure and principal-agent theory;according to international experience and China's national conditions,China's government and social capital cooperation model For the franchise,equity cooperation,purchase services three categories;these theoretical analysis for the following to further understand the PPP model provides a theoretical support.The second part combs the running history of China's PPP model and the current situation of legislation,and understands the three stages of the development of PPP model in our country.It focuses on the relevant laws and regulations issued by the National Development and Reform Commission and the Ministry of Finance in charge of PPP projects.The problems in practice,such as the lack of a unified management agency,the existing legal level is lower and more conflict,PPP mode,the nature of the agreement is not clear and so on.The third part summarizes the merits of each country from the aspects of legal system,supervision system,implementing organization,dispute settlement,government affairs and operation rules,and so on.The third part obtains the merits of the development of PPP model in Britain,Canada and Australia.China has a meaningful conclusion.In the fourth part,the author analyzes the causes of the legal system of PPP mode and the establishment of relevant laws in order to solve the problems of legal conflict,reduces the legal risk,solve the financing difficulties,improve the administrative efficiency and promote the application of the PPP model.The system puts forward some suggestions from the main train of thought,the procedure aspect and the main content,and elaborates the key question,and provides the reference for establishing the legal system with the whole,the level and the comprehensive.