Research On The Legal Withdrawal Mechanism Of Social Capital In PPP Projects In China

Public-Private Partnership(PPP),a mode of cooperation between the government and social capital owners,has started a new wave of investment in the society since the Third Plenary Session of the 18 th Central Committee of the Communist Party of China.Then its related policies were made by the the ministries of the State Council and local governments to encourage the development of the PPP mode.So it has been gradually popularized in China,and its correlative policies have been gradually improved as well.The PPP mode can not only relieve the financial pressure of the government,but also absorb the idle funds in the society and avoid the waste of resources.It is a measure to transform government functions and comprehensively deepening reforms.However,PPP projects get a low implementation rate.Further,the low rate could largely be attributed to the defects of legal withdrawal mechanism of social capital.The perfect legal withdrawal mechanism of social capital can not only protect the legal rights and interests of social capital,but also increase the enthusiasm of social capital to participate in PPP projects.It is the key to the rapid development of PPP mode.Therefore,this thesis focuses on the legal mechanism for the withdrawal of social capital in PPP projects,expecting to provide references for the withdrawal of social capital in the process of PPP projects.Besides the "Introduction" and "Conclusion",this thesis mainly consists three parts:The first part overviews the legal mechanism for the withdrawal of social capital from the PPP projects.This part firstly defines the concepts of PPP project,social capital and its withdrawal legal mechanism.Secondly,the part expounds the significance of constructing social capital withdrawal legal mechanism,which not only reduces the impact of business life issues on long-term partnership,but also gives freedom for the social capital consortium members to enter and drop out from the PPP project.Moreover,the establishment of the withdrawal legal mechanism could improve the enthusiasm of pure capital investors.The second part pays attention to the current situation and existing problems of the legal mechanism for social capital withdrawal from the PPP projects in China.Chinese regulations on the social capital withdrawal mechanism of the PPP project are scattered in the normative documents issued by the central and local governments.The existing withdrawal channels of social capital are mainly concentrated on the transfer of maturity,equity transfer,IPO,asset securitization and government repurchase.The defects of existing social capital legal mechanism constitutes four aspects: the first is the lack of top-level design and the weakness of operability of existing regulations;the second is the unsound capital market and the lack of diversified exit channels;the third is the imperfect government examination and approval system;the fourth is that government attaches more importance to entrance than exit,causing many unnatural ways of withdrawing.Therefore,we need to discuss how to improve the legal mechanism for social capital withdrawal from PPP projects in China.The third part provides the suggestions for building a perfect legal mechanism for social capital withdrawal from the PPP projects.To improve social capital legal mechanism of PPP projects in China,we must perfect the legal system of PPP projects and specifically start from the following four aspects.Firstly,perfecting the relevant laws and regulations,and broadening the withdrawal channels of social capital.On the basis of the original exit channels,exploring the exit channels of leaseback,revenue bond issues and PPP property trading platform establishments.The second is to strengthen the legal regulation of the government approval behavior.The legal rights and interests of social capital are guaranteed from three aspects: the simplification of government examination and approval procedure,the establishment of the supervision system of government approval and the relief system of social capital.Thirdly,we should improve the third-party evaluation system from the establishment of the third-party assessment's legal status,the improvement of the evaluation agency's talent team construction and the appropriate selection of assessment methods.Fourthly,designing reasonable punishment and compensation mechanism based on social capital withdraw from the projects according to different risk and fault.