Research On PPP Supervision

A PPP(Public-Private-Partnership)project,refers to a cooperative arrangement between the government and one or more private sectors,on the basis of a franchise agreement,signed by the parties to definite their rights and obligations.which is to ensure that some public goods and services are to be provided to achieve a win-win expected goal.In 1992,the British Finance Minister Norman Lamont launched a PFI(Private Finance Initiative)in UK.Which has become the first public-private cooperation project with modern PPP(Public Private Partnership)significance,and also an important mode to further promote the cooperation between the government and private sectors,after the introduction of market competition into the public service field.And the project has therefore been promoted all over the world.In 1980s,China also began to explore the application of PPP projects and so far,it has thirty years.With the structural reform and the promotion of the new urbanization strategy,a new upsurge in PPP projects has been arising in China in recent years.At present the PPP market in China has taken shape initially.On the one hand,China has spent three years to construct a complete set of system regulations and operating instructions.On the other hand,the PPP market has begun to take shape.At the end of 2016,the Finance Ministry PPP Integration Information Platform has a record of 110,000 national projects,covering 19 major economic and social fields with the infrastructure constructions and public services.However,many failure cases also indicate the lack of legal regulation during the promotion of PPP in China,especially the lack of government regulation.Thus,This paper studies the regulatory issues in PPP project intensively.In addition to the introduction and conclusion,the main part of this thesis is arranged as follows:The first part of this article is an overview of PPP.It mainly introduces the concept of PPP and the classification of PPP projects.On the basis of explaining the essence of PPP,the theoretical basis and regulatory mechanism of PPP project supervision are derived.From the theory of public goods,principal-agent theory and corporate governance theory,the necessity of PPP project supervision is demonstrated.This paper also expounds the subjects,objects and contents of the supervision mechanism in PPP project.The second part takes Britain as an example.The main experiences of British PPP project supervision are introduced.Mainly from the British PPP project supervision system and legal basis,This paper draws the British PPP regulatory features as follows:First of all,the success of PFI cannot be established without the support of EU Public Procurement Directives and legislation,such as the domestic law of Britain and normative documents.Secondly,perfection of the PPP project supervision system is sophisticated and adopting a grading supervision model led by the Ministry of finance.Finally,the performance supervision,supervision system in the aspects of British PPP regulation is quite perfect.Among them,KPI(key performance indicators),competitive negotiation system,cooperative partnership and other characteristics of the system is worthy of our reference.The third part is an analysis of China's PPP project supervision,it discusses the present situation of supervision and its problems:The supervision system of PPP projects in China has not yet established,the regulators lack abilities and their responsibility is not clear.On the content of supervision,private sector selection and project admittance supervision evaluation mechanism are not perfect,performance indicators and evaluation system of supervision has not yet been formed.The legal reasons for the ineffective supervision of PPP project in China include:the lack of PPP legislation on a high level,the conflicts among some existing regulations between department regulations and regulatory documents conflict and the lack of standard model contract.The fourth part puts forward the countermeasures for China's PPP regulation.From the perspective of legislation,on the one hand,drawing lessons from Britain and improving our regulatory capability from aspects of regulatory agencies,admittance supervision,performance supervision and etc,on the other hand,strengthening legal protection,with a high order of legislation to provide legal protection for strengthening the legal supervision.Besides,strengthening supervision on admittance,completing the election and project evaluation mechanism and establishing performance supervision system satisfying the public demand.In addition,a standard PPP model contract is to be established with provisions covering different industries and districts.The main innovation of this paper is:in-depth study in regulatory issues in the field of PPP.This is a new topic and currently there is rare domestic research in this field.In addition,to pursue the veracity and accuracy of the research in this paper,the author has spent a lot of efforts doing legal research in both foreign and domestic PPP legislation and relative policies.