Research On The Capital Withdrawal Of PPP Projects In China

In recent years,Chinese Government paid lots of attention on the development of PPP(Public-Private Partnership)projects.The state council,related ministries and local governments have made a series of normative documents.But in practice,the signing rate of PPP project is still low.The basic analysis for this status is that the legal system of PPP project is incomplete.It can not provide a uniform regulations for the implementation of PPP projects.Until now,we don't have one specialized PPP law.The lack of superior law leads to the difficulty on the usage of PPP law.For the present PPP projects,the main regulations are the guidance documents which are drafted by the state council,the related ministries and local governments.Due to the status of these regulations are not strong enough and the regulations between different ministries,different governments and between ministries and local governments are really different and conflicted which means the PPP projects are unable to adopt any laws.Considering of the long period,huge investment and high risk of PPP projects,the present legislation of PPP projects cannot provide a predicable and stable prospect to the social capital which may resulted with the doubt of social capital to enter into the PPP projects and the low rate of signed PPP,furthermore,not beneficial to the sustainable development of PPP projects.And Capital Withdrawal,as one of the most important link in the whole operation procedures of PPP projects,also as a reassurance of PPP project,it has not attract great attention in the society.Within the present regulations,most of attention are paid on the entrance of social capital but for the capital withdrawal are rarely referred or even referred but not clarified.Capital Withdrawal,as the vigorous guarantee to the PPP projects is absolutely necessary during the whole operation procedures of PPP projects.Hence,the special chapter shall be used to describe the Capital Withdrawal in the PPP law.And the limitation,the function and the method shall be stated in the PPP law to build one platform for the Capital Withdrawal and provide suggestions for the legislation of PPP law and push forward the healthy and sustainable development of PPP projectsBy the analysis of the key elements of PPP project,including but not limited to the connotation,range of application,operation mode,and the signed and completed cases,this essay is going to explain the limitation,major methods of Capital Withdrawal and the effect to build and perfect the system of Capital Withdrawal,considering of successful experiences in China and abroad,to provide legal suggestions from eight factors such as increasing legislation efficiency and operability of PPP law,specifying the qualification for transferee,building Capital Withdrawal platform,supervisor system,temporary take over system,reasonable compensate system,handing over evaluation system and risk management system for the establishing and perfecting of the Capital Withdrawal of the development of PPP projects in China.