Research On The Price Mechanism And Regulation Mechanism Of PPP Project Under The Perspective Of Regulation

Currently,compared to the large number of landed PPP(Public Private Partnership)projects,failed PPP projects in the past rarely reported.We find that many PPP projects failed by governments canceling,suspended concession period,the government ahead of the repurchase,private sector profiteering or losing,for example,National Stadium,Hangzhou Bay Bridge,Citong Bridge,Wutongshan Tunnel and so on.Among them,most of the reason for the failures is that private sector failed to achieve “profits without profiteering”.Private sector profiteering or losing is the appearance of the problem,behind it there are two main reasons:Firstly,in a relatively short time,only private sectors and governments participate in drafting the concession contracts,thus it difficult to take into account all the factors that affect the price and contract status varying in the future.Therefore pricing and price adjustment clauses are set inadequately,incentive-constraint mechanism is unreasonable,and these problems pave the way for the disputes after the project is completed and put into operation.Secondly,there is lack of supervision or inadequate supervision.At present,In Chinese government supervision for the PPP projects there exists wide supervision body,decentralization,lack of clear and sound regulatory system,lack of supervision or multiple supervision in some areas,thereby resulting in corruption and rent-seeking occurred frequently.To solve the above problems,the paper includes three main research contents or processes as followings:Firstly,from stakeholders' perspective in PPP projects,we analyze stakeholders in PPP projects,and specifically summarize key stakeholders' factors for pricing and price adjustment.Based on this,the paper concludes that factors for pricing and price adjustment,and reference model during the concession contracts' preparation stage in PPP projects.Secondly,by analyzing advantages and disadvantages of price adjustment clause and the traditional formula in current PPP projects contracts,the paper concludes factors leading to price changes and analyzes the formation mechanism.What's more,the paper introduces some factors with incentive-constraints,such as Quality Supervision,User Rating and so on,improves traditional ceiling price adjustment model,intending to optimize the price adjustment formula while promoting the progress of government regulation.Finally,developed country utilities reform processes also experienced long-term exploration and government regulation constantly updated.However,the lack of an independent and integrated regulatory authorities in the utilities of China,and poor efficiency of supervision for PPP projects,are not conducive for PPP's accurate application and promote in-depth.The paper,based on other scholars' researches,from the objectives and principles of regulation,discusses the principles and frameworks about how to design regulators.For the practical problems "How to ensure private sectors achieve profits without profiteering",we conduct path study of price regulation,with a view for governments to improve laws and regulations,and providing a reference of regulatory security system construction.