Legal Research On The Regulation Of The Government Credit Risks Of PPP Projects

Since the 20 th century,the PPP project model has developed rapidly in China,and its core lies in the cooperation between government and social capital.This solves some of the shortcomings of the government itself,especially in terms of funding and professional competence.However,at the same time,private capital has been concerned about PPP projects in recent years.An important factor is that the government will use its own rights to default and cause government credit risks.This risk has had a significant negative impact on establishing a credible government and encouraging social capital to join.This issue has also been fully recognized and valued by the government.The General Office of the State Council and the National Development and Reform Commission have issued separate documents to emphasize the importance of government integrity.Therefore,based on the current manifestation of government credit risk,this paper analyzes the main factors that generate government credit risk and proposes two kinds of regulation methods:contractualization and administrativeization,and,at the same time,analyzes and compares the two methods among international organizations and extraterritorial countries,ultimately presenting the reasons for the two methods and the final formulation of the regulatory methods suitable for China.The first chapter is the basic chapter of the full text.It establishes the basicpremise of this article.It is divided into two parts.The first part discusses the author's connotation of government credit risk and the legal nature of the PPP project.The second part analyzes the reasons and the paths of the government credit risk of the PPP project.The former mainly explains and analyzes the concept of PPP,the basic framework of PPP legal system,the legal nature of the PPP contract,the main form of PPP and the particularity of it.This clarifies the basis of the content to be discussed in this paper so that the subsequent discussion has basic preconditions.The latter combines existing cases and current research to sum up the reasons for government credit risk in the PPP project,the regulatory path,and the reasons why the author chose the two methods of contractualization and administration.The following two chapters will center around the two forms of regulation,contractualization,and administration.The content of the second chapter is the contractual regulation of PPP government credit risk.Based on the analysis of advantages and disadvantages of various types of contractualization methods and the feasibility,the author believes that the improvement of contract terms and the construction of government default guarantee system is an important part of the contractual means.In terms of perfecting the contract terms,the author took the relevant regulations and experience of international organizations and other countries as references and focused on the model selection of the government default clause and the convenience termination clause in the terms of the PPP agreement.The author believes that the government default clause should adopt a broad definition and nailed down the situational approach;the convenience termination clause shall adopt an approach that is be based on the existing law and contract,and the fact that the public interest is harmed,and the situation where compensation amount is the same as the government default amount;in the case of government default guarantee,the author uses international organizations and extraterritorial countries' relevant regulations and experiences as references to summarize two guarantee methods which are guarantee contracts anddirect promise from the higher-level government.The author believes that the former should be more conducive to regulating government credit risk.The content of the third chapter is the administrative regulation of PPP government credit risk.Based on the analysis of the advantages and disadvantages of various types of administrative methods and the feasibility of them,the author believes that the construction of PPP centers and PPP supervision institutions are two important methods of administration.The author conducted a review and an investigation of the relevant regulations and experiences of international organizations and extraterritorial countries to sum up the status,pattern,and functions of the PPP center,and proposes that the PPP center should be established and adopted in the entire country and provincial territories,with it being affiliated to the model of the Ministry of Finance.In the PPP regulatory body,the author conducts a review and examination of relevant regulations and experiences of international organizations and extraterritorial countries and believes that an independent third-party institution model that supervises the entire process of PPP projects should be established.The fourth chapter,based on the first three chapters,is based on the legislation and practice status of the government credit risk of China's PPP project and combined with the reasons and characteristics of PPP government credit risk mentioned in the first chapter,along with the explanation of the government credit of PPP projects in international organizations,and the principled interpretation of the general direction and principles of risk regulation.Also,based on the second and third chapters where the paper compares the various models of contractualization and administration,the author offers suggestions for China's PPP contract breach clause,default guarantee,PPP center,and PPP regulators.