Fairness In The Risk Allocating Mechanism Of PPP Projects

Public-Private Partnerships (PPP), is also known as government and social capital cooperation, they are mainly used in the construction of public utilities such as public infrastructure and public services. This new model of cooperation has been put forward to the application so far, but only three or four decades of the scene, but has been widely used in the world——both developing and developed countries. Although the PPP model solves the problem of shortage of government funds and improves the overall construction efficiency of the project, the risk of its construction and operation is not reduced compared with the traditional model. Before the social capital does not join the public construction, all risks are borne by the public sector (the government) alone. After introducing the PPP concept, the private sector shares the risk, which reducing the probability of occurrence of project bankruptcy by the risk and the large losses after the occurrence of the risk. Therefore, If PPP projects want to a long-term friendly and cooperative development, one of the prerequisites is going to make a fair and reasonable to share the risk of the project, and ultimately receiving the greatest benefit from the PPP mode.Based on the theory and practice of risk sharing of PPP project, this article analyzes the embodiment and importance of fairness idea in risk sharing. And then from " public welfare " and " self-interest" of the PPP agreement, "fair" and "efficiency" of the risk-allocating mechanism and the risk-allocating dispute resolution mechanism of the three different aspects, to strengthen the PPP project risk allocating mechanism of fairness design to make some constructive comments which includes the creation of procedural mechanism and price mechanism, the improvement of the value for money evaluation system. The first two roles are effecting on the procedural process after the risks occurred, the latter is to improve the public-private partnership access threshold. The former and the latter are effecting mutually to ensure the importance of fairness in the project. Dispute resolution mechanism is a remedial measure, the previous PPP risk research is focused on how to share the risk, and rarely considering the handling of disputes which caused by risk-allocating. On the basis of the concept of fairness, the author puts forward the concept of PPP risk dispute resolution mechanism, and puts forward the solution mechanism of PPP risk allocating around the construction of legal system, the way of dispute settlement and the introduction of professional dispute resolution institution——dispute adjudication committee / dispute adjudication committee guarantee.