Ex Post Risk Governance Patterns Of PPP Projects In China

Public-private Partnerships(PPPs)has been widely used in various sectors of China in recent years for the benefits of easing financial burden,improving and improving operational performance of infrastructure,which also causes some collateral damage,such as economic,social and political risks.This is because of the inherent complexity and uncertainty of the long-term contract,and the contracting parties cannot list all the contractual terms for future risks in the contract.After the risk event is turned into a hazard,ex post risk governance role of PPPs is highlighted.Therefore,under the background of China's vigorous promotion of PPP project,we must open the "black box" of ex post risk governance,and seriously consider the following questions: How does the public and private party manage risk events? Why is there diversified governance models? What are the structural factors behind it?Existing PPP research lacks attention to ex post risk management issues,not to mention systematic research.Therefore,this paper takes the definition of diversified risk governance models as the starting point,constructs the diversified risk governance analytical framework,and interprets the theoretical framework through comparative analysis of 20 cases.This paper argues that the three interdependent risk events of economic,social and political risks lead to different risk governance models.Therefore,when a risk event occurs,the private party and the government will adopt different risk response models.Generally speaking,economic risks tend to change the social capital side and repurchase.The political risk has different governance modes such as repurchase,suspension and forced takeover.The above-mentioned governance model is conditioned by the bargaining power of the public and private party,and this bargaining power is affected by institutional structure and resource dependence.When the government has higher bargaining power,it has an advantage in the negotiation of repurchase,and can cope with a high degree of political risk by means of compulsory takeover.Finally,this paper believes that under the upsurge of PPP construction,it is necessary to be alert to the occurrence of various risk events.Good governance structure has an important impact on the performance of PPP.Government and social capitalists can achieve their respective expected goals based on changes in bargaining power.